Form Rt-800002 - Employer Guide To Reemployment Tax (Page 15 of 18) in pdf

Any employer who has been billed for an outstanding

otherwise, the transfer will be denied. A partial rate

tax debt for one year or longer, will be assigned

transfer may be granted if the RTS-1S is signed by

the penalty tax rate of 5.4 percent (.0540) unless

both parties consenting to the rate transfer and all

payment is received prior to the effective date of

requested information is provided. Form RTS-1S will

the new tax rate. Employers are notified of any

require the total number of predecessor employees

outstanding tax debt by mail, with a reemployment

before the transfer, the number of employees in the

tax Summary of Amount Past Due (RT-27).

identifiable and separate unit transferred, and the

date the transferred unit began employment while

Successor Accounts

operated by the predecessor. The partial transfer

Any individual, partnership, or corporation, which

form must be returned within 30 days from the date

becomes an employer by succession, has the option

the notification of option is mailed to the successor.

of transferring the predecessor’s tax rate or taking

If the form is determined to be late, the transfer will

the initial rate of 2.7 percent (.0270). If the new

be denied.

owner becomes liable by succession and elects

to transfer the predecessor’s tax rate, a Report to

When an employer buys an additional unit of

Determine Succession and Application for Transfer

business from another liable employer, the purchaser

of Experience Rating Records (RTS-1S) must be

must submit a Florida Business Tax Application

signed and returned within 30 days from the date

(DR-1), marked “AMENDED” to provide additional

the notification of option is mailed to the successor

information concerning the purchase.

or the transfer will be denied. The form must have

A company reporting several units of business must

the signature of the owner or a corporate officer. In

advise the Department if any of the units are sold.

order to qualify for a tax rate transfer, the successor

The names and addresses of the new owners as well

employer must have notified the Department of the

as the dates of sale are required. This information

acquisition within 90 days of the date the succession

may be submitted by a detailed letter or in a Report

began, otherwise, the transfer will be denied.

to Determine Succession and Application for

Transfer of Experience Rating Records (RTS-1S).

If the new owner is already liable, and elects to

transfer the predecessor’s tax rate history, the

Before buying an existing business, a purchaser

RTS-1S must be signed, as stated above, and

should ask the seller for documentation of any

returned within 30 days from the date the notification

tax, (including, but not limited to, reemployment

of option is mailed to the successor. A tax rate will

tax), penalty, or interest due to the Department

be computed based on the combined employer

of Revenue, since a purchaser could be liable for

histories. If the form is not returned within 30

any tax, penalty and interest owed by the seller in

days, the transfer of records will be denied. If the

accordance with s. 213.758, F.S. The purchaser

successor does not elect the transfer, the new

can then withhold enough of the purchase money

owner’s existing tax rate will apply.

to cover the liability until the seller pays the amount

Any successor employer requesting transfer of

due.

experience rating records of the predecessor must

Mandatory Transfers

submit payment, by certified funds, for any debt

Reemployment tax experience must be transferred

owed by the predecessor, if any, within 30 days

whenever there is any common ownership,

of the mailing date of the notice listing the total

management, or control of two employers, and one

amount due or the transfer will be denied. Also,

of these transfers its trade or business (including

the successor’s account will be charged with any

its workforce), or a portion thereof, to the other

benefits paid to the individuals who were former

employer. This requirement applies to both total and

employees of the predecessor. These charges will

partial transfers of business.

be used in future tax rate computations.

Employers must notify the Department in writing

If the new owner acquires only a portion of the

of any total or partial transfer of trade or business

predecessor’s business, the successor is entitled

within 90 days after the date of transfer if there was

to the experience rating records of that particular

any common ownership, management, or control of

unit if qualifying conditions are met. In order to

the two employers at the time of the transfer.

qualify for partial transfer, the successor employer

Federal Certification

must have notified the Department of the acquisition

Every year the Department certifies to the federal

within 90 days of the date the succession began,

Department of Revenue, Employer Guide to Reemployment Tax, Page 15

Form Rt-800002 - Employer Guide To Reemployment Tax Page 15

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