Florida Senate - 2019                                     SB 638
       
       
        
       By Senator Braynon
       
       
       
       
       
       35-02060-19                                            2019638__
    1                        A bill to be entitled                      
    2         An act relating to Reemployment Assistance Program Law
    3         contribution rates; amending s. 443.131, F.S.;
    4         providing an adjustment, beginning on a specified
    5         date, to the contribution rate of the reemployment
    6         assistance tax for specified employers; providing that
    7         the adjustment may not be in effect during certain
    8         years; conforming a provision to changes made by the
    9         act; providing a contingent effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Paragraph (e) of subsection (3) of section
   14  443.131, Florida Statutes, is amended to read:
   15         443.131 Contributions.—
   16         (3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT
   17  EXPERIENCE.—
   18         (e) Assignment of variations from the standard rate.—
   19         1. As used in this paragraph, the terms “total benefit
   20  payments,” “benefits paid to an individual,” and “benefits
   21  charged to the employment record of an employer” mean the amount
   22  of benefits paid to individuals multiplied by:
   23         a. For benefits paid prior to July 1, 2007, 1.
   24         b. For benefits paid during the period beginning on July 1,
   25  2007, and ending March 31, 2011, 0.90.
   26         c. For benefits paid after March 31, 2011, 1.
   27         2. For the calculation of contribution rates effective
   28  January 1, 2012, and thereafter:
   29         a. The tax collection service provider shall assign a
   30  variation from the standard rate of contributions for each
   31  calendar year to each eligible employer. In determining the
   32  contribution rate, varying from the standard rate to be assigned
   33  each employer, adjustment factors computed under sub-sub
   34  subparagraphs (I)-(IV) are added to the benefit ratio. This
   35  addition shall be accomplished in two steps by adding a variable
   36  adjustment factor and a final adjustment factor. The sum of
   37  these adjustment factors computed under sub-sub-subparagraphs
   38  (I)-(IV) shall first be algebraically summed. The sum of these
   39  adjustment factors shall next be divided by a gross benefit
   40  ratio determined as follows: Total benefit payments for the 3
   41  year period described in subparagraph (b)3. are charged to
   42  employers eligible for a variation from the standard rate, minus
   43  excess payments for the same period, divided by taxable payroll
   44  entering into the computation of individual benefit ratios for
   45  the calendar year for which the contribution rate is being
   46  computed. The ratio of the sum of the adjustment factors
   47  computed under sub-sub-subparagraphs (I)-(IV) to the gross
   48  benefit ratio is multiplied by each individual benefit ratio
   49  that is less than the maximum contribution rate to obtain
   50  variable adjustment factors; except that if the sum of an
   51  employer’s individual benefit ratio and variable adjustment
   52  factor exceeds the maximum contribution rate, the variable
   53  adjustment factor is reduced in order for the sum to equal the
   54  maximum contribution rate. The variable adjustment factor for
   55  each of these employers is multiplied by his or her taxable
   56  payroll entering into the computation of his or her benefit
   57  ratio. The sum of these products is divided by the taxable
   58  payroll of the employers who entered into the computation of
   59  their benefit ratios. The resulting ratio is subtracted from the
   60  sum of the adjustment factors computed under sub-sub
   61  subparagraphs (I)-(IV) to obtain the final adjustment factor.
   62  The variable adjustment factors and the final adjustment factor
   63  must be computed to five decimal places and rounded to the
   64  fourth decimal place. This final adjustment factor is added to
   65  the variable adjustment factor and benefit ratio of each
   66  employer to obtain each employer’s contribution rate. However,
   67  except for the adjustment provided in sub-subparagraph c., an
   68  employer’s contribution rate may not, however, be rounded to
   69  less than 0.1 percent.
   70         (I) An adjustment factor for noncharge benefits is computed
   71  to the fifth decimal place and rounded to the fourth decimal
   72  place by dividing the amount of noncharge benefits during the 3
   73  year period described in subparagraph (b)3. by the taxable
   74  payroll of employers eligible for a variation from the standard
   75  rate who have a benefit ratio for the current year which is less
   76  than the maximum contribution rate. For purposes of computing
   77  this adjustment factor, the taxable payroll of these employers
   78  is the taxable payrolls for the 3 years ending June 30 of the
   79  current calendar year as reported to the tax collection service
   80  provider by September 30 of the same calendar year. As used in
   81  this sub-sub-subparagraph, the term “noncharge benefits” means
   82  benefits paid to an individual from the Unemployment
   83  Compensation Trust Fund, but which were not charged to the
   84  employment record of any employer.
   85         (II) An adjustment factor for excess payments is computed
   86  to the fifth decimal place, and rounded to the fourth decimal
   87  place by dividing the total excess payments during the 3-year
   88  period described in subparagraph (b)3. by the taxable payroll of
   89  employers eligible for a variation from the standard rate who
   90  have a benefit ratio for the current year which is less than the
   91  maximum contribution rate. For purposes of computing this
   92  adjustment factor, the taxable payroll of these employers is the
   93  same figure used to compute the adjustment factor for noncharge
   94  benefits under sub-sub-subparagraph (I). As used in this sub
   95  subparagraph, the term “excess payments” means the amount of
   96  benefits charged to the employment record of an employer during
   97  the 3-year period described in subparagraph (b)3., less the
   98  product of the maximum contribution rate and the employer’s
   99  taxable payroll for the 3 years ending June 30 of the current
  100  calendar year as reported to the tax collection service provider
  101  by September 30 of the same calendar year. As used in this sub
  102  sub-subparagraph, the term “total excess payments” means the sum
  103  of the individual employer excess payments for those employers
  104  that were eligible for assignment of a contribution rate
  105  different from the standard rate.
  106         (III) With respect to computing a positive adjustment
  107  factor:
  108         (A) Beginning January 1, 2012, if the balance of the
  109  Unemployment Compensation Trust Fund on September 30 of the
  110  calendar year immediately preceding the calendar year for which
  111  the contribution rate is being computed is less than 4 percent
  112  of the taxable payrolls for the year ending June 30 as reported
  113  to the tax collection service provider by September 30 of that
  114  calendar year, a positive adjustment factor shall be computed.
  115  The positive adjustment factor is computed annually to the fifth
  116  decimal place and rounded to the fourth decimal place by
  117  dividing the sum of the total taxable payrolls for the year
  118  ending June 30 of the current calendar year as reported to the
  119  tax collection service provider by September 30 of that calendar
  120  year into a sum equal to one-fifth of the difference between the
  121  balance of the fund as of September 30 of that calendar year and
  122  the sum of 5 percent of the total taxable payrolls for that
  123  year. The positive adjustment factor remains in effect for
  124  subsequent years until the balance of the Unemployment
  125  Compensation Trust Fund as of September 30 of the year
  126  immediately preceding the effective date of the contribution
  127  rate equals or exceeds 4 percent of the taxable payrolls for the
  128  year ending June 30 of the current calendar year as reported to
  129  the tax collection service provider by September 30 of that
  130  calendar year.
  131         (B) Beginning January 1, 2018, and for each year
  132  thereafter, the positive adjustment shall be computed by
  133  dividing the sum of the total taxable payrolls for the year
  134  ending June 30 of the current calendar year as reported to the
  135  tax collection service provider by September 30 of that calendar
  136  year into a sum equal to one-fourth of the difference between
  137  the balance of the fund as of September 30 of that calendar year
  138  and the sum of 5 percent of the total taxable payrolls for that
  139  year. The positive adjustment factor remains in effect for
  140  subsequent years until the balance of the Unemployment
  141  Compensation Trust Fund as of September 30 of the year
  142  immediately preceding the effective date of the contribution
  143  rate equals or exceeds 4 percent of the taxable payrolls for the
  144  year ending June 30 of the current calendar year as reported to
  145  the tax collection service provider by September 30 of that
  146  calendar year.
  147         (IV) If, beginning January 1, 2015, and each year
  148  thereafter, the balance of the Unemployment Compensation Trust
  149  Fund as of September 30 of the year immediately preceding the
  150  calendar year for which the contribution rate is being computed
  151  exceeds 5 percent of the taxable payrolls for the year ending
  152  June 30 of the current calendar year as reported to the tax
  153  collection service provider by September 30 of that calendar
  154  year, a negative adjustment factor must be computed. The
  155  negative adjustment factor shall be computed annually beginning
  156  on January 1, 2015, and each year thereafter, to the fifth
  157  decimal place and rounded to the fourth decimal place by
  158  dividing the sum of the total taxable payrolls for the year
  159  ending June 30 of the current calendar year as reported to the
  160  tax collection service provider by September 30 of the calendar
  161  year into a sum equal to one-fourth of the difference between
  162  the balance of the fund as of September 30 of the current
  163  calendar year and 5 percent of the total taxable payrolls of
  164  that year. The negative adjustment factor remains in effect for
  165  subsequent years until the balance of the Unemployment
  166  Compensation Trust Fund as of September 30 of the year
  167  immediately preceding the effective date of the contribution
  168  rate is less than 5 percent, but more than 4 percent of the
  169  taxable payrolls for the year ending June 30 of the current
  170  calendar year as reported to the tax collection service provider
  171  by September 30 of that calendar year. The negative adjustment
  172  authorized by this section is suspended in any calendar year in
  173  which repayment of the principal amount of an advance received
  174  from the federal Unemployment Compensation Trust Fund under 42
  175  U.S.C. s. 1321 is due to the Federal Government.
  176         (V) The maximum contribution rate that may be assigned to
  177  an employer is 5.4 percent, except employers participating in an
  178  approved short-time compensation plan may be assigned a maximum
  179  contribution rate that is 1 percent greater than the maximum
  180  contribution rate for other employers in any calendar year in
  181  which short-time compensation benefits are charged to the
  182  employer’s employment record.
  183         (VI) As used in this subsection, “taxable payroll” shall be
  184  determined by excluding any part of the remuneration paid to an
  185  individual by an employer for employment during a calendar year
  186  in excess of the first $7,000. Beginning January 1, 2012,
  187  “taxable payroll” shall be determined by excluding any part of
  188  the remuneration paid to an individual by an employer for
  189  employment during a calendar year as described in s.
  190  443.1217(2). For the purposes of the employer rate calculation
  191  that will take effect in January 1, 2012, and in January 1,
  192  2013, the tax collection service provider shall use the data
  193  available for taxable payroll from 2009 based on excluding any
  194  part of the remuneration paid to an individual by an employer
  195  for employment during a calendar year in excess of the first
  196  $7,000, and from 2010 and 2011, the data available for taxable
  197  payroll based on excluding any part of the remuneration paid to
  198  an individual by an employer for employment during a calendar
  199  year in excess of the first $8,500.
  200         b. If the transfer of an employer’s employment record to an
  201  employing unit under paragraph (f) which, before the transfer,
  202  was an employer, the tax collection service provider shall
  203  recompute a benefit ratio for the successor employer based on
  204  the combined employment records and reassign an appropriate
  205  contribution rate to the successor employer effective on the
  206  first day of the calendar quarter immediately after the
  207  effective date of the transfer.
  208         c. Beginning January 1, 2020, the tax collection service
  209  provider shall adjust the contribution rate of each employer
  210  with an initial or variable rate below the maximum contribution
  211  rate of 5.4 percent provided in sub-sub-subparagraph a.(V) to a
  212  rate computed by subtracting one one-hundredth of 1 percent from
  213  the rate otherwise computed under this section. However, the
  214  adjustment provided in this sub-subparagraph may not be in
  215  effect for any year in which the balance in the Unemployment
  216  Compensation Trust Fund requires the computation of a positive
  217  adjustment factor as provided in sub-sub-subparagraph a.(III).
  218         Section 2. This act shall take effect on the same date that
  219  SB ____ or similar legislation takes effect, if such legislation
  220  is enacted in the same legislative session or an extension
  221  thereof and becomes a law.