Unemployment tab is $61M for Florida


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  • | 12:40 p.m. June 29, 2011
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Employers already paying record sums in unemployment compensation taxes can't be all too pleased to owe even more. Count Gold Coast Eagle Distributing President John Saputo among the unhappy campers — though not so much for the obvious reason that it's one more check his Lakewood Ranch beer distributorship must write to a government agency.

Last month, the Florida Department of Revenue mailed out reminder notices to employers that interest payments are due June 30 for each employer's share of $61.4 million the state owes the feds so far.

That's a payment for more than $2 billion in loans made to the state to cover Florida's share of the cost of unemployment benefits. The state's employers now owe an added $9.52 per employee, which totals nearly $1,800 for Gold Coast Eagle.

Employers already pay about $149 per employee this year to the state and federal governments, including $72.10 per employee to the state. That state share is up from $25.20 last year to help cover the costs of unemployment compensation. The federal share has gone up, too.

The state portion would have been $100.30 until the Legislature passed a bill last year to disregard a factor in the formula and cut the rate.

The cut stalled the replenishment of the state's unemployment compensation fund, which went dry in August 2009, and required borrowing from the federal government to make up the difference.

Saputo understands why it's necessary, but what bothers him is this: he's got jobs available, yet applicants can't pass a required drug screening. “Here's us paying,” he says, “and believe it or not, there are still jobs available in the warehouse. They can't pass the drug test.”

It adds up to a lot of wasted time and money that would have many an entrepreneur reaching for a cold one. “It delays hiring anybody,” Saputo says. “People get unemployment and they can't pass a drug test? It's ridiculous. It sure seems ridiculous to add another tax burden. I could have done something with that $1,800.”

 

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