Hillsborough County, or the Tampa-St. Petersburg-Clearwater area, reached a new high for unemployment: 13.1%.
The number of jobs in the region was once 1,136,512. Since the recession began in December 2007, 106,990 jobs have been lost, according to the Department of Numbers. Many Floridians rely on unemployment compensation during the economic slump.
Individuals must apply for compensation. Florida’s Agency for Workforce Innovation reviews claims. To qualify, citizens must be unemployed through no fault of their own. They must be on an active job search and ready to take a job that is offered to them.
Unemployment insurance consists of what the agency calls “temporary wage replacement benefits.” The most a former employee in the state of Florida can receive is $275 per week. The weekly amount is based on previous earnings.
After a claim is filed, it must be verified every two weeks that the individual’s job search is still ongoing. The first check arrives after approximately three to four weeks. The agency works with individuals through local One-Stop Career Centers and the website www.employflorida.com.
Florida’s compensation system is not prepared for the 13.1% unemployment rate. The money originally came from Florida’s Unemployment Compensation Trust Fund (UCTF). At the end of 2008, the UCTF contained more than $1.3 billion. The fund was emptied by August 2009.
According to the Citrus County Chronicle, the UCTF cut funds during better economic times instead of saving for today’s recession. The state is forced to borrow approximately $300 million from the federal government each month. In September 2011 hundred of millions will be due in interest payments.
Florida employers are taxed to provide unemployment compensation. The Department of Revenue formulates the tax rate. A $1.2 billion increase was proposed last year to become effective January 1, 2010. The Sun Sentinel printed specific numbers. Employers formerly paid the compensation tax of $8.40 per employee. The suggested increase was $100.30 per employee.
This proposal did not go over well, especially with small businesses. Some organizations are against any tax increase. The Florida Chamber of Commerce encouraged employer protests.
The House of Representatives passed legislation in March to delay the employer tax increase. Miami Rep. Ronald Brise said, “Let’s do everything we can in our power to encourage businesses to open and employ Floridians.” The minimum compensation tax rate is now $25 per employee, a lot less than the suggested $100.30.
Employees pay an unemployment tax determined by their salary. The taxable wage base remains at $7,000, according to the American Payroll Association. Recent legislation denied the $8,500 wage base.
While Hillsborough County’s unemployment rate is 13.1%, the state of Florida’s is approximately 12%. Nationally, unemployment hovers around 9.7%. The alternative to increased employer and employee taxes is further debt with the federal government.
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