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

Any employer who has been billed for an outstanding

must have notified the Department of the acquisition,

tax debt for one year or longer, will be assigned

otherwise, the transfer will be denied. A partial rate

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

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

payment is received prior to the effective date of

both parties consenting to the rate transfer and all

the new tax rate. Employers are notified of any

requested information is provided. Form RTS-1S will

outstanding tax debt by mail, with a reemployment

require the total number of predecessor employees

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

before the transfer, the number of employees in the

Employers can view their tax rate by logging into

identifiable and separate unit transferred, and the

their account at

date the transferred unit began employment while

eservices/filepay.html.

operated by the predecessor. The partial transfer

form must be returned within 30 days from the date

Successor Accounts

the notification of option is mailed to the successor.

Any individual, partnership, or corporation, which

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

becomes an employer by succession, has the option

be denied.

of transferring the predecessor’s tax rate or taking

When an employer buys an additional unit of

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

owner becomes liable by succession and elects

business from another liable employer, the purchaser

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

must submit a Florida Business Tax Application

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

Determine Succession and Application for Transfer

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

information concerning the purchase.

signed and returned within 30 days from the date the

A company reporting several units of business must

notification of option is mailed to the successor

advise the Department if any of the units are sold.

or the transfer will be denied. The form must have

The names and addresses of the new owners as well

the signature of the owner or a corporate officer. In

as the dates of sale are required. This information

order to qualify for a tax rate transfer, the successor

may be submitted by a detailed letter or in a Report

employer must have notified the Department of the

to Determine Succession and Application for

acquisition within 90 days of the date the succession

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

began, otherwise, the transfer will be denied.

Before buying an existing business, a purchaser

If the new owner is already liable, and elects to

should ask the seller for documentation of any

transfer the predecessor’s tax rate history, the

tax, (including, but not limited to, reemployment

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

tax), penalty, or interest due to the Department

returned within 30 days from the date the notification

of Revenue, since a purchaser could be liable for

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

any tax, penalty and interest owed by the seller in

be computed based on the combined employer

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

histories. If the form is not returned within 30

can then withhold enough of the purchase money

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

to cover the liability until the seller pays the amount

successor does not elect the transfer, the new

due.

owner’s existing tax rate will apply.

Mandatory Transfers

Any successor employer requesting transfer of

Reemployment tax experience must be transferred

experience rating records of the predecessor must

whenever there is any common ownership,

submit payment, by certified funds, for any debt

management, or control of two employers, and one

owed by the predecessor, if any, within 30 days

of these transfers its trade or business (including its

of the mailing date of the notice listing the total

workforce), or a portion thereof, to the other

amount due or the transfer will be denied. Also,

employer. This requirement applies to both total and

the successor’s account will be charged with any

partial transfers of business.

benefits paid to the individuals who were former

Employers must notify the Department in writing

employees of the predecessor. These charges will

of any total or partial transfer of trade or business

be used in future tax rate computations.

within 90 days after the date of transfer if there was

If the new owner acquires only a portion of the

any common ownership, management, or control of

predecessor’s business, the successor is entitled

the two employers at the time of the transfer.

to the experience rating records of that particular

Federal Certification

unit if qualifying conditions are met. In order to

Every year the Department certifies to the federal

qualify for partial transfer, the successor employer

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

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

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