January 15th: Friday Roundup

The weekend is calling as another work week concludes.  According to the Bureau of Labor Statistics, U.S. Department of Labor, the unemployment rate for the country held steady at 6.7% in December.  The number of unemployed persons held stead at 10.7 million.  While these figures are considerably lower than the spike we saw in April, they are still double the pre-pandemic levels we enjoyed last February.    Attached is the Bureau’s new release on The Employment Situation – December 2020, which contains detailed statistics on our current state. 

December bore witness to a continued decline in jobs in leisure, hospitality, and private education sectors.  These losses were offset by some gains in professional and business services, retail trade and construction; sectors which are attempting to rebound. 

Continued high unemployment figures will impact the unemployment tax rates.  This is something we will continue to keep an eye on.  Hopefully, you caught our post earlier this week regarding the anticipated increases in unemployment tax rates in Florida.  

Unemployment Tax Rates in Florida are Increasing

Unemployment often leads to criminal activities.  As COVID-19 diagnosis continue to climb nationwide, so do predatory scams related to the pandemic.  Spreading awareness of these scams is one of the best ways we can help to limit the number of individuals who fall victim.  We hope you saw our post earlier this week sharing recommendations from Regions Bank Treasury Management and the FBI on how to avoid falling prey to these scams.

Regions Bank Treasury Management sends out information on Emerging COVID-19 Scams

Stay safe and have a wonderful weekend everyone!

Unemployment Tax Rates in Florida are Increasing

The Office of Economic and Demographic Research (EDR) has recently published the attached forecast summary on Florida’s Unemployment Compensation Trust Fund for 2021 and beyond. Suzanne Hurst, Deputy Director of Florida Association of Professional Employer Organizations (FAPEO) offers the following review of these figures.

The Office of Economic and Demographic Research (EDR) is a research arm of the Legislature principally concerned with forecasting economic and social trends that affect policy making, revenues, and appropriations.

The figures below come from the attached summary provided by the Office of Economic and Demographic Research (EDR). This document provides historic context, current figures and forecasted figures for benefit charges, collections and rates for Florida’s Unemployment Compensation Trust Fund.  This important information is provided to you for your cash flow planning. 

Unemployment Tax Rates – Minimum Tax Rate

2020 – .10%

2021 – .29%

2022 – 1.15%  (forecasted)

2023 – 1.11% (forecasted)

2024 – .56% (forecasted)

2025 – .10% (forecasted)

Your Florida PEO Lobbyist, David Daniel, is presenting a detailed briefing at a meeting Friday of state-wide business interests about possible solutions to impact of social costs from benefit payments related to the pandemic.  Your FAPEO board has created multiple proposals that could lower rates as early as this year.  We will continue to advocate for common sense solutions that protect Florida’s small employers as everyone struggles during these economic times. 

We will keep you up to date on all developments as these proposals move through the lawmaking process.