Form Rt-800002 - Employer Guide To Reemployment Tax (Page 2 of 18) in pdf

Introduction

assistance benefits. If a person files a claim for

benefits and the employer has not been including

The Employer Guide to Reemployment Tax contains

the person on the quarterly report, this can cause a

information employers need to comply with Florida’s

delay in benefit payments. In addition, the intentional

Reemployment Assistance Program Law. This

misclassification of a worker is a felony.

guide provides simplified explanations of the taxing

State Unemployment Tax Act (SUTA)

procedures of the law. It is not intended to take

All reemployment tax payments are deposited to the

precedence over the law or rules.

Unemployment Compensation Trust Fund for the

Background

sole purpose of paying benefits to eligible claimants.

Every state has an Unemployment Compensation

The employer pays for this Reemployment

Program. In Florida, legislation passed in 2012

Assistance Program as a cost of doing business.

changed the name of Florida’s Unemployment

Workers do not pay any part of the Florida

Compensation Law to the Reemployment Assistance

reemployment tax and employers must not make

Program Law and directed the focus of the program

payroll deductions for this purpose. Employers with

to helping Florida’s job seekers with becoming

stable employment records receive credit in reduced

reemployed. Reemployment benefits provide

tax rates after a qualifying period.

temporary income payments to make up part of the

Federal Unemployment Tax Act (FUTA)

wages lost by workers who lose their jobs through

Federal unemployment taxes are deposited to the

no fault of their own, and who are able and available

FUTA Trust Fund and administered by the United

for work. It is job insurance paid for through a tax

States Department of Labor (USDOL) for funding

on employee wages. The Reemployment Assistance

the administrative costs of state reemployment

Program supports reemployment services through

assistance, One-Stop Career Centers, and part of

local One-Stop Career Centers located throughout

Labor Market Statistics Programs. The USDOL is

the state.

also charged with monitoring state Reemployment

The Federal Unemployment Tax Act provides for

Assistance Programs and can withhold funds from a

cooperation between state and federal governments

state if it does not comply with federal standards.

in the establishment and administration of the

Reporting Wages and Paying

Reemployment Assistance Program. Under this dual

system, the employer pays payroll taxes levied by

Reemployment Taxes

both the state and federal governments.

General Liability Requirements

Classification of Workers

A business is liable for state reemployment tax if, in

Employers must understand how to determine

the current or preceding calendar year, the employer:

whether a worker is an employee or an independent

(1) has paid at least $1,500 in wages in a calendar

contractor, so they can correctly include all

quarter; or (2) has had at least one employee for any

employees on their Employer’s Quarterly Report

portion of a day in 20 different calendar weeks in a

(RT-6). One main distinction is that an employee

year; or (3) is liable for the Federal Unemployment

is subject to the will and control of the employer.

Tax as a result of employment in another state.

The employer decides what work the employee

will do and how the employee will do it. An officer

Special Liability Requirements for

of a corporation who performs services for the

Specific Employer Types

corporation is an employee, regardless of whether

the officer receives a salary or other compensation.

Nonprofit Employers

Coverage is extended to employees of nonprofit

An independent contractor is not subject to the

organizations (such as religious, charitable, scientific,

will and control of the employer. The employer

literary, or education groups) that employ four or

can decide what results are expected from the

more workers for any portion of a day in 20 different

independent contractor, but cannot control the

calendar weeks during the current or preceding

methods used to accomplish those results. How the

calendar year. Exceptions to this coverage include

worker is treated, not a written contract or issuance

churches and church schools. For purposes of

of a 1099, determines whether the worker is an

the Florida Reemployment Assistance Program

employee or an independent contractor.

Law, a nonprofit organization is defined in section

Misclassification of workers is not just a tax reporting

(s.) 3306(c)(8) of the Federal Unemployment Tax Act

issue; it also affects claims for reemployment

and s. 501(c)(3) of the Internal Revenue Code (IRC).

Department of Revenue, Employer Guide to Reemployment Tax, Page 2

Form Rt-800002 - Employer Guide To Reemployment Tax Page 2

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