Due to recent economic conditions and a large volume of UI benefit claims, the Florida UI trust fund has become depleted. As a result, the Florida Department of Revenue has borrowed funds from the federal government in excess of $2 billion to pay UI benefits. Since the loans will not be repaid by January 1, 2012, the state will be required to pay interest on the borrowed funds pursuant to federal guidelines. Legislation enacted in early 2010 imposes a special assessment on Florida employers to pay the interest due on federal advances to the UI trust fund in the event that those advances are not repaid by January 1, 2012. The Department has now computed the amount of interest that must be paid collectively by Florida employers.
On January 22, 2011, the Department mailed an assessment notice (Form UCT-27Fi) to each taxable employer informing them of their proportionate share based on the employer’s reported UI taxable wages for the fiscal year ending June 30, 2010. Each employer’s assessment amount due is calculated by multiplying their UI taxable wages reported during this period by 0.136%. For example, if the reported UI taxable wages were $500,000.00, the total assessment due will be $680.00. Additionally, a flat charge of $25 will be added to the total assessment due for any delinquent quarterly reporting during this time period.
The assessment must be paid by June 30, 2011. Interest will begin to accrue on any outstanding assessment amounts beginning July 1, 2011.
As always, if there are any questions please do not hesitate to contact us.
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