Florida Employer Guide to Reemployment Tax

Employer Guide to Reemployment Tax
Form RT-800002
RT-800002
R. 08/23

Employer Guide to Reemployment Tax
Table of Contents

Introduction

2

Background, Classification of Workers, and State Unemployment Tax Act (SUTA)
Federal Unemployment Tax Act (FUTA)

Reporting Wages and Paying Reemployment Taxes

2

General Liability Requirements

Special Liability Requirements for Specific Employer Types

3

Nonprofit Employers, Governmental Entities, and Indian Tribes
Reimbursement Option, Agricultural Employers, and Domestic Employers
Voluntary Coverage and Employer-Employee Relationship
Employment Not Covered

Required Reports

6

Employer Registration Report and Successions
Employee Leasing Companies, Common Paymaster, and Payrolling
Power of Attorney and Reemployment Tax Data Release Agreement (RT-19)

Tax and Wage Reporting

7

Where to Report Employees and Reciprocal Coverage Agreement (RCA)
Employer’s Quarterly Report (RT-6) and Taxable Wage Base
Annual Filing Option, Reporting Wages, Taxable Wages, and Exempt Wages
Employer Multi-Unit Reports
Reporting Employees Contracted to Governmental or Nonprofit Educational Institutions
E-Verify Certification – New in July 2023

Reporting Medium

12

Alternative Forms Reporting
Electronic Reporting and Payment Requirement
Penalty for Failure to File Electronically
Benefits of Filing and Paying Electronically
Timely Reporting and Payment
Installment Payment Option

Penalty and Interest for Late Filing and Payment

13

Assessments, Liens, Tax Rate Consequences, and Protest
Correcting Your Report and New Hire Reporting
Inactivation of Account, Termination of Liability, and When to Notify the Department

Tax Audits and Required Employer Records

15

Audit Purpose
Records Required and Examined

Tax Rate

15

Regular, Successor Accounts, Mandatory Transfers, and Federal Certification

Benefits

18

How Benefits are Charged and Their Impact on Employers

Glossary, Contact Us, and Employer's Checklist for Compliance

Department of Revenue, Employer Guide to Reemployment Tax, Page 1

18

Introduction
The Employer Guide to Reemployment Tax contains information employers need to comply with Florida’s
Reemployment Assistance Program Law. This guide provides simplified explanations of the taxing procedures
of the law. It is not intended to take precedence over the law or rules.
Background
Every state has an Unemployment Compensation Program. In Florida, legislation passed in 2012 changed
the name of Florida’s Unemployment Compensation Law to the Reemployment Assistance Program Law.
Reemployment benefits provide temporary income payments to make up part of the wages lost by workers
who lose their jobs through no fault of their own, and who are able and available for work. It is job insurance
paid for through a tax on employee wages. The Reemployment Assistance Program supports reemployment
services through local One-Stop Career Centers located throughout the state.
The Federal Unemployment Tax Act provides for cooperation between state and federal governments in the
establishment and administration of the Reemployment Assistance Program. Under this dual system, the
employer pays payroll taxes levied by both the state and federal governments.

Classification of Workers
Employers must understand how to determine whether a worker is an employee or an independent
contractor, so they can correctly include all employees on their Employer’s Quarterly Report (RT-6). One
main distinction is that an employee is subject to the will and control of the employer. The employer decides
what work the employee will do and how the employee will do it. An officer of a corporation who performs
services for the corporation is an employee, regardless of whether the officer receives a salary or other
compensation.
An independent contractor is not subject to the will and control of the employer. The employer can decide
what results are expected from the independent contractor, but the employer cannot control the methods
used to accomplish those results. How the worker is treated, not a written contract or issuance of a Form
1099, determines whether the worker is an employee or and independent contractor.
Misclassification of workers is not just a tax reporting issue; it also affects claims for reemployment assistance
benefits. If a person files a claim for benefits and the employer has not been including the person on the
quarterly report, this can cause a delay in benefit payments. In addition, the intentional misclassification of a
worker is a felony.
State Unemployment Tax Act (SUTA)
All reemployment tax payments are deposited to the Florida Unemployment Compensation Trust Fund for
the sole purpose of paying benefits to eligible claimants. The employer pays for this Reemployment
Assistance Program as a cost of doing business. Workers do not pay any part of the Florida reemployment
tax, and employers must not make payroll deductions for this purpose. Employers with stable employment
records receive credit in reduced tax rates after a qualifying period.
Federal Unemployment Tax Act (FUTA)
Federal unemployment taxes are deposited to the FUTA Trust Fund and administered by the United
States Department of Labor (USDOL) for funding the administrative costs of state reemployment assistance,
One-Stop Career Centers, and part of Labor Market Statistics Programs. The USDOL is also charged with
monitoring state Reemployment Assistance Programs and can withhold funds from a state if it does not
comply with federal standards.

Reporting Wages and Paying Reemployment Taxes
General Liability Requirements
A business is liable for state reemployment tax if, in the current or preceding calendar year the employer: (1)
has paid at least $1,500 in wages (which includes paying $800 each to two workers) in a calendar quarter; or
(2) has had at least one employee (does not need to be the same employee) for any portion of a day in 20
different weeks within the same calendar year; or (3) is liable for federal unemployment tax.

Department of Revenue, Employer Guide to Reemployment Tax,

Page 2

Special Liability Requirements for Specific Employer Types
Nonprofit Employers
Coverage is extended to employees of nonprofit organizations (such as religious, charitable, scientific,
literary, or education groups) that employ four or more workers for any portion of a day in 20 different
calendar weeks during the current or preceding calendar year.
Exceptions to this coverage include churches and church schools. For purposes of the Florida
Reemployment Assistance Program Law, a nonprofit organization is defined in section (s.) 3306(c)(8) of
the Federal Unemployment Tax Act and s. 501(c)(3) of the Internal Revenue Code (IRC).
Governmental Entities
Coverage is extended to employees of the state of Florida and any city, county, or joint governmental unit.
Indian Tribes
Coverage is extended to employees for service performed in the employ of an Indian tribe, as defined by
s. 3306(u) of the Federal Unemployment Tax Act, provided the service is excluded from employment as
defined by that act solely by reason of s. 3306(c)(7) of the act and is not otherwise excluded from
employment under the Florida Reemployment Assistance Program Law. For purposes of the Florida
Reemployment Assistance Program Law, the exclusions from employment under s. 443.1216(4), Florida
Statutes (F.S.), apply to services performed in the employ of an Indian tribe.
Reimbursement Option
Nonprofit organizations, governmental entities, and Indian tribes have the option of being contributing (i.e.,
taxpaying) employers or reimbursing employers. A reimbursing employer is one who must pay the
Unemployment Compensation Trust Fund on a dollar- for-dollar basis for the benefits paid to its former
employees. Wage reports are submitted each quarter, and reimbursement of benefit charges are paid when
billed. The employer choosing the contributing method submits quarterly reports and tax due by applying their
tax rate to taxable wages each quarter.
Agricultural Employers
Agricultural employers who, in the current or preceding year, paid $10,000 in cash wages in a calendar
quarter or who employed five or more workers for any portion of a day in 20 different calendar weeks will
become liable employers. Employers with a liability under this provision will also need to report any other
employees (except domestic workers). The other employees must be reported even if their employment was
less than 20 different weeks, or the wages paid were less than $1,500 in any one quarter.
Domestic Employers
Employers of employees who perform domestic services (maids, cooks, maintenance workers, chauffeurs,
social secretaries, caretakers, private yacht crews, butlers, and house parents) who, in the current or prior
year, paid at least $1,000 in wages in any one calendar quarter are liable to report wages and pay
reemployment tax. Employers liable under this provision must not report general employees or agricultural
employees unless they also establish liability under these other provisions of the law.
Likewise, employers liable for their general employment must not report domestic workers or agricultural
workers unless they also establish liability in these categories. In making a determination of liability, the
wages paid in agricultural employment and in domestic employment must be counted separately from wages
paid in other types of employment.
The “Coverage Requirements” chart (on Page 4) illustrates coverage requirements for four different
employers (A, B, C, and D). Columns two, three, and four list employment for each sample employer and the
column on the far right lists the coverage (liability) required.
Voluntary Coverage
Employers who are not otherwise liable under the law may apply for voluntary coverage for their employees.
Employers liable for one type of employment (e.g., general) may elect to cover their employees in other types
of employment (e.g., agricultural and/or domestic). Selection of voluntary coverage obligates an employing
unit to report wages and pay tax for a minimum of one calendar year. Coverage remains in effect until the
employer provides written notice, by April 30, to terminate coverage for the current year. A form, Voluntary
Election to Become an Employer Under the Florida Reemployment Tax Law (RTS-2), for election of coverage
is available online at floridarevenue.com/forms under the Reemployment Tax section.
Department of Revenue, Employer Guide to Reemployment Tax,

Page 3

Employer-Employee Relationship
Employment means any service performed by an employee for an employing unit. An employee is an
individual as defined under the common law rules for employer-employee relationships. An employee is a
person who is subject to the will and control of the employer not only as to what will be done, but how it
will be done.
Any officer of a corporation performing services for the corporation is considered an employee during
their tenure of office, regardless of whether compensation is received. Compensation, other than dividends
on shares of stock and board of director fees, is presumed to be payment for services performed.
Any member of a limited liability company classified as a corporation for federal income tax purposes,
who performed services for the limited liability company, is an employee of the limited liability company.
Sales personnel are generally considered covered employees. The fact that a salesperson working for

Coverage Requirements
Employer Examples

Agricultural Employers
$10,000 payroll in any
quarter or
5 employees for 20
weeks within a calendar
year

Employer A

$5,000 payroll and 5
employees for 10 weeks

Employer B

$10,000 payroll and 5
employees for 20 weeks

Employer C

Employer D

Domestic Employers

$1,000 payroll
in any quarter

General Employers
$1,500 payroll in any
quarter or

Subject to
Reemployment Tax

1 employee for 20
weeks within a calendar
year
$1,000 payroll and 1
employee for 4 weeks

Domestic coverage
only

$2,000 payroll

$1,500 payroll and 1
employee for 15 weeks

Agricultural,
Domestic, and
General coverage

$25,000 payroll and 18
employees for 20 weeks

$500 payroll

$1,000 payroll and 1
employee for 15 weeks

Agricultural coverage
that includes the
general employee

$5,000 payroll and 2
employees for 10 weeks

$200 payroll

$10,000 payroll
and 4 employees
for 10 weeks

General coverage
only

$1,500 payroll

an employer is paid solely by commission does not remove the person from the employer’s direction and
control. The law provides specific exemptions for real estate agents, insurance agents, and barbers who are
paid solely by commission. If they are paid by salary only or by salary and commission, both are taxable, and
the exemption does not apply.
An employing unit is the person, limited liability company, partnership, corporation, or other legal entity for
whom service is performed. Common law recognizes an employer-employee relationship in the exercise of
will and control by the employer over the employees. The employer can direct what services will be
performed, when the services will be performed, where and how they will be performed, and can set
standards for the quality of work to be performed.
In agricultural labor, either the farm operator or the crew leader may be considered the employer. An
individual must hold a valid certification of registration under the Farm Labor Contractor Registration Act of
1993 to be a crew leader. The crew leader is the employer if he or she (1) provides the crew, (2) supervises
the work being performed by the crew, (3) has the right to terminate employment, and (4) is responsible for
the payment of wages to the workers.
The farm operator is the employer if (1) the individual is an employee of the farm operator under common
law rules of employer and employee, or (2) the worker is furnished by the crew leader, but is not treated as an
employee of the crew leader, i.e., the crew leader is acting on behalf of the farm operator rather than as an
employer, or (3) the crew leader has entered into a written agreement with the farm operator under which the
crew leader is designated as an employee of the farm operator.

Department of Revenue, Employer Guide to Reemployment Tax,

Page 4

An independent contractor is not subject to the will and control of the employer. The employer does not
have the right to control or direct the manner or method of performance, although the results to be
accomplished are controlled. Independent contractors hold themselves out to the public as such. Generally,
they furnish materials as well as labor and use their own tools in the performance of the work. Services
performed by independent contractors cannot be summarily terminated without recourse. A contract for labor
only will normally be considered a contract of employment. How the worker is treated, not a written contract or
the issuance of a Form 1099, determines employment status.
Employment Not Covered
Several types of employment are not covered for reemployment assistance purposes and workers
performing these types of employment are not considered in determining an employer’s liability. Some of
these exemptions include:
•
Services by a sole proprietor, a partner, or a member of a limited liability company classified for federal
income tax purposes as either a partnership or a sole proprietorship.
•
Services by employees of a church, convention, or association of churches; or of organizations operated
for religious purposes that are operated, supervised, controlled, or principally supported by a church,
convention, or association of churches.
•
Services of a duly ordained, commissioned, or licensed minister of a church in the exercise of the ministry,
or by a member of a religious order, in the exercise of duties required by such an order.
•
Services for a school, college, or university, by a student enrolled and attending classes.
•
Services by certain students working for credit on a program combining academic instruction with work
experience, such as Cooperative Business Education (CBE) or Diversified Cooperative Training (DCT)
students.
•
Services performed for a son, daughter, or spouse (including step relationships); or by children or
stepchildren under the age of 21 for their father or mother. When the employing unit is a partnership, an
exempt relationship must exist to all partners or there is not an exemption. This exemption does not apply
to corporations.
•
Services performed by insurance agents, real estate agents, or barbers when paid solely by commission.
•
Services performed on a fishing vessel that weighs 10 net tons or less.
•
Services performed by a student nurse in the employ of a hospital or a nurses training school,
by an intern in the employ of a hospital, or by a hospital patient.
•
Services in a rehabilitation facility for the mentally handicapped, or physically handicapped or injured, by
persons receiving such rehabilitative service.
•
Services by persons under age 18 in the delivery or distribution of newspapers.
•
Services performed by nonresident aliens, who are temporarily present in the United States as nonimmigrants under subparagraph (F) or (J) of s. 101(a)(15) of the Immigration and Nationality Act.
•
Services performed by aliens in agricultural labor, who have entered the United States pursuant to ss.
214(c) and 101(a)(15)(H) of the Immigration and Nationality Act.
•
Services performed for the government by elected officials; by members of the legislature; by members of
the judiciary; by those serving on a temporary basis in cases of fire, storm, snow, earthquake, flood, or
similar emergencies; or by those serving in an advisory capacity.
•
Services by direct sellers who are contracted to sell or solicit consumer goods to homes or any place
other than a permanent retail establishment and whose substantial remuneration is directly related to
sales.
•
Services performed by speech, occupational, and physical therapists who are non-salaried and working
pursuant to a written contract with a home health agency as defined in s. 400.462, F.S.
•
Services performed by a driver for a private delivery or messenger service if the driver pays all expenses,
owns the vehicle and pays all operating costs, is paid by delivery or on commission, is free to accept or
reject jobs, determines routes and methods of performance, and has a contract stating the driver is an
independent contractor.
•
Services performed by inmates of a penal institution.
•
Services performed by election officials or election workers who are paid less than $1,000 in a calendar
year.
•
Services performed as a Transportation Network Company driver if the conditions listed in
s. 627.748(9) F.S., are met.

Department of Revenue, Employer Guide to Reemployment Tax,

Page 5

Required Reports
Employer Registration Report
A new business is required to report its initial employment in the month following the calendar quarter in which
employment begins; however, submission of quarterly reports alone is not sufficient to register as an
employer. A Florida Business Tax Application (Form DR-1) must be completed to provide the necessary
information to determine if the employer is liable for the payment of reemployment tax as provided by law.
Registration can be completed online at floridarevenue.com/taxes/registration.
When an employer is determined to be subject to reemployment tax, a seven-digit account number will be
assigned. This account number should appear on all letters, checks, and reports sent to the Florida
Department of Revenue (the Department).
Successions
There are special requirements for successor accounts. See “Successor Accounts” under the “Tax Rate”
section in this guide.
Employee Leasing Companies
An employee leasing company (ELC), also known as a Professional Employer Operation, maintains the
records required by the reemployment assistance program law for its client companies. The ELC must be
licensed by the Florida Department of Business and Professional Regulation. The client companies contract
with the ELC to provide workers to perform services for the client. The leased employees are placed on the
ELC’s payroll on behalf of the client company, and therefore the ELC is considered the employer of record for
the leased employees.
The leasing company must notify the Department within 30 days of the initiation or termination of the
company’s relationship with the client company.
ELCs must provide a multiple work site report each quarter that includes information for each client
establishment and each leasing company establishment. These reports must be filed electronically with the
U.S. Bureau of Labor Statistics. For additional information regarding the multiple work site report, the leasing
company may contact:
Florida Department of Commerce
Labor Market Statistics
MSC G-020
107 E Madison Street
Tallahassee, FL 32399-0411
ELCs have the option to file and pay reemployment tax by the client’s tax rate, which is based upon the
wage and benefit history the client has earned under the ELC. If the client has no wage and benefit history
under the ELC, the client will have the initial rate of 2.7% (0.0270). A separate reemployment tax account
number will be assigned by the Department under the FEIN of the ELC for each client company. This option
must be elected by a newly licensed ELC within 30 days after the license is issued pursuant to part XI of
Chapter 468, F.S. Additional information about this filing option can be found in s. 443.1216(1)(a), F.S.
Common Paymaster
Related corporations with employees performing services simultaneously for the related corporations
may apply to the Department for authorization to use a common paymaster arrangement. This allows
one of the related corporations to report and pay reemployment tax rather than each corporation
reporting and paying separately for the period of concurrent employment.
The Application for Common Paymaster (RTS-70) must be received by the Department prior to the first
day of the quarter in which common paymaster status is requested. Once the application is approved,
the common paymaster must submit a Quarterly Concurrent Employment Report (RTS-71), along with
the quarterly report. Failure to do so will result in the related corporations being denied common
paymaster status for that calendar quarter. The related corporations must meet certain criteria before
common paymaster reporting and paying can be considered.

Department of Revenue, Employer Guide to Reemployment Tax,

Page 6

Payrolling
Payrolling is an agreement between employers whereby payrolls for two or more employers are
consolidated, usually for tax purposes, with one employer reporting the employees of the other(s). Payrolling
is not permitted; each employer must file a Florida Business Tax Application (DR-1) and report its own
employees.
Power of Attorney (POA)
A completed Florida Power of Attorney form (DR-835) is necessary for an employer’s agent or
representative to receive confidential information and to act on behalf of the employer about matters
concerning the Florida Reemployment Assistance Program. Form DR-835 must be completed in its entirety
and must contain the original signature of the employer as well as the date signed. This form
available online at floridarevenue.com/forms.
Submission of a Form DR-835 does not constitute an address change. A change of mailing address should
be requested by separate written documentation or online at floridarevenue.com/taxes/updateaccount.
Reemployment Tax Data Release Agreement (RT-19)
The RT-19 is an agreement between the Department and an employer representative who represents 100
or more employers. The agreement allows the representative to receive confidential tax information from
the Department. Under the agreement, the representative certifies that it has on file a current Form
DR-835 from the employer authorizing the Department to release the requested information to the
representative, that the representative will restrict access to the confidential reemployment tax information
to specifically authorized personnel, and that the representative will notify the Department by electronic
means within 30 days when the representative no longer represents the employer.

Tax and Wage Reporting
Where to Report Employees
If the employer has employees working in more than one state, it may be necessary to register as an
employer with another state’s employment security agency. There are four tests to determine to which state
an employee should be reported:
•
Localization of Services
•
Base of Operations
•
Place of Direction or Control
•
Residence
Localization of Services - If all services are performed in Florida, the employee should be reported to
Florida. If a majority of the employee’s time is for services in Florida, with only occasional or short-term
duty in another state, wages should be reported to Florida. Only when services are balanced between two
or more states is any other test necessary.
Base of Operations - The base of operations is the fixed place or center from which the employee works.
The employee would return there to replenish stock, receive employer instructions, receive mail or
telephone messages from customers, repair equipment, etc. For example, if services are performed in
Florida, Alabama, and Georgia, and the employee’s base of operations is in Florida, wages are reportable
to Florida. If no services are performed in the state housing the base of operations, the state from which
services are directed or controlled should be considered the base of operations.
Place of Direction or Control - The place of direction or control is the state from which the employer’s
authority is exercised. The company headquarters usually exercises this control rather than a direct
supervisor or a foreman stationed in the field. For example, if employer control is from the Florida
headquarters, and service is performed only in Florida and Georgia, the employee is reported to Florida,
although there is a base of operations or residence in Alabama. If control is from Alabama, and service is
in Florida, Georgia, and Tennessee, and there is no base of operations, then the employee’s residence
test should be used.
Residence - The residence is where the employee refers to as “home,” where the employee actually lives
and is registered to vote. For instance, the employee would be reportable to Florida if the place of
residence is Florida and services are not performed in Alabama, where the employer is headquartered.

Department of Revenue, Employer Guide to Reemployment Tax,

Page 7

Reciprocal Coverage Agreement (RCA)
The RCA permits an employer to report all of the services of a worker who customarily performs services on
a continuing basis in more than one state, to one selected state. An election to do so may be filed with any
jurisdiction (state) in which:
• any part of the individual’s services are performed; or
• the worker resides; or
• the employer maintains a place of business to which the worker’s services bear a reasonable
relation.
RCA forms must be initiated by the employer in the state that the employer has selected as the reporting
state. If approval is granted by the state of origination, the forms will then be sent to all the jurisdictions
(states) named for their approval. The election will become effective if the originating state and one or
more of the named states approve it. In cases where an election is only approved in part, the employer
may withdraw the request within ten (10) days of being notified.
This type of election is only applicable to the individuals named in the agreement. The Department must be
notified of all individual changes and new approvals negotiated. RCAs are never made as blanket
approvals. The agreement may be terminated if the Department discovers there has been a substantial
change in the employer’s operations or in the actual employees now serving the employer as multi-state
workers.
An employer who has employees in other states and does not meet the requirements to establish an RCA
will be required to report these employees to the other states.
Employer’s Quarterly Report (RT-6)
Every quarter, a preprinted Employer’s Quarterly Report (RT-6) is mailed to liable employers unless they
are filing electronically. Employers with individuals who only perform domestic services and are
approved to file annually, are mailed a personalized Employer’s Reemployment Tax Annual Report for
Employers of Domestic Employees Only (RT-7) in December of each year.
RT- 6 Calendar Quarter

Due No Later Than

January 1 - March 31

April 30

April 1 - June 30

July 31

July 1 - September 30

October 31

October 1 - December 31

January 31

Failure to receive a reporting form does not relieve employers of their filing responsibility. If you do not
receive the RT-6 form, you may download a form at floridarevenue.com/forms from the Reemployment
Tax section. An RT-7 form will be mailed to you after the RT-7A application is submitted and approved.
The RT-7A application is available on the website in the Reemployment Tax section. The Employer’s
Quarterly Report (RT-6) must be submitted by the end of the month following the quarter being reported on
the report. The Employer’s Reemployment Tax Annual Report for Employers of Domestic Employees Only
(RT-7) is due January 1, and late after January 31.
Electronic payments must be initiated, and a confirmation number received, no later than 5 p.m. ET on
the business day prior to the payment due date to be considered timely. If the payment due date falls on
a Saturday, Sunday, or legal holiday, the taxpayer must initiate the electronic transaction on the
preceding business day. The Florida eServices Calendar of Electronic Payment Deadlines (DR-659) is
available online at floridarevenue.com/forms under the eServices section.
The tax portion of the quarterly report is a summary of the wage detail data and is used in the computation
of tax owed by the employer. This information includes gross wages paid for covered employment, wages
in excess of the taxable limit, and taxable wages. Some information requested on the tax portion is
required by the federal government and is used for statistical purposes, such as the number of all full-time
and part-time covered workers who performed services during or received pay for the payroll period
including the 12th of the month.
Department of Revenue, Employer Guide to Reemployment Tax,

Page 8

The wage portion is used to calculate taxable wages and determine eligibility for reemployment assistance
benefits. The employer must list the name, social security number, gross and taxable wages for all
employees. Employee information is maintained in the wage record file and is used if a claim for benefits is
filed.
•
Social Security Number (SSNs) - Incorrect or missing SSNs prevent wage credits to an individual or
could result in payment of benefits to an individual who does not meet the reemployment assistance
eligibility requirements. In addition, a penalty of up to $300 may be imposed for any report filed with
incorrect or missing SSNs.
Note: Social Security numbers are used by the Department as unique identifiers for the administration of
Florida’s taxes. SSNs obtained for tax administration purposes are confidential under ss. 213.053 and
119.071, F.S., and not subject to disclosure as public records. Collection of SSNs is authorized under
state and federal law. Visit floridarevenue.com/privacy for more information regarding state and
federal laws governing the collection, use, or release of SSNs, including authorized exceptions.
•
Total Wages Paid - All compensation or payment for employment, including commissions, bonuses,
back pay awards, and the cash value of all compensation paid in any medium other than cash, must
be reported. Total wages for the period must be reported in the period in which they were paid, not the
period in which they were earned. The amount of benefits available to an eligible claimant is based on
total wages paid.
Employers must submit a report every quarter regardless of employment activity. An employer may
not have to pay tax for a particular quarter because there were no employees, or all wages were excess
wages. Even though no tax is due, a report must be filed; and the penalty provisions of the law apply if the
report is filed late.
Taxable Wage Base
The taxable wage base in Florida is the first $7,000 in wages paid to each employee during a calendar year.
If an employee works for two or more employers, each of the employers is required to pay tax on the first
$7,000 of wages paid without regard to earnings with any other employer. However, when a business is
transferred, the successor employer may count wages paid to an employee by the predecessor employer for
purposes of determining the taxable wage base, whether or not a transfer of experience rating record is
elected.
Example: An employer buys a business April 1. One of the employees has been paid $5,000 in the first
quarter and will earn $5,000 in the second quarter. The successor can count the $5,000 in the first quarter in
determining the taxable wage base. Therefore, the successor will only have to pay reemployment tax on
$2,000 for the second quarter. On occasion, multi-state employers will have employees who perform
services in another state and then transfer to Florida. The employer can take credit for wages reported to
another state up to $7,000, when calculating taxable wages reportable to Florida.
Example: An employee earns $5,000 in the first quarter in the state of New York and then is transferred to
Florida. While in Florida, the employee earns $4,000 in the second quarter. As the employer has already
paid tax on wages of $5,000 to New York, the tax payment to Florida would be based on wages of $2,000,
with the balance being excess wages. Use the Employer’s Quarterly Report for Out-of-State Taxable Wages
(RT-6NF) to report out-of-state wages.
Annual Filing Option
Employers of employees performing domestic services have the option to elect to report wages and pay tax
annually, with a due date of January 1 and a delinquency date of February 1. To qualify for this election, the
employer must employ only employees who perform domestic (household) services, be eligible for a
variation from the standard rate, and apply for this program no later than December 1 of the preceding
calendar year.
Reporting Wages
As a general rule, if the work promotes, advances, or aids the employer’s trade or business and is not
performed by a recognized independent contractor, the services are considered to be covered employment
and the wages are taxable regardless of the amount of time employed and/or the amount of earnings.
Department of Revenue, Employer Guide to Reemployment Tax,

Page 9

Casual labor is work performed that is not in the course of the employer’s regular trade or business and is
occasional, incidental, or irregular. Casual labor should not be confused with temporary or part- time
employment. Temporary or part-time employment is taxable, whereas casual labor is not. A corporation
cannot have casual labor since all activities for a corporation must be in the course of the corporation’s
regular trade or business. When determining whether or not payments constitute wages, and are reportable
for reemployment tax purposes, the common law rules applicable in determining the “employer-employee
relationship” apply.
Taxable Wages
•
Commissions are taxable, except real estate agents, insurance agents, and barbers paid solely by
commission. If paid by salary only, or by salary and commission, both are taxable, and the exemption
does not apply.
•
Bonuses and back pay awards.
•
Cash value of all remuneration paid in any medium other than cash.
•
Corporate officers’ wages - compensation other than dividends on shares of stock and board of
director fees is presumed payment for services performed.
•
Wages of shareholder-employee of S corporation - Also, all or part of the distribution of income paid to
a shareholder-employee who is active in the business and performing services for the business may
be considered wages.
•
Tips, if received while performing services that constitute employment and are included in a written
statement furnished to the employer, pursuant to s. 6053(a), Internal Revenue Code (IRC).
•
Cash value of vacation facilities, club memberships, and tickets to events.
•
Financial planning assistance and retirement counseling fees.
•
Nonqualified stock bonus incentive plan contributions made by the employer.
•
Awards, gifts, and prizes over $25.
•
Interest from below market interest rate loans.
•
Excess employee discounts.
•
Cash value of meals and lodgings not for the employer’s convenience.
•
Cash value of prepaid group legal services.
•
Golden parachute payments.
•
After-death payments for wages earned prior to death.
•
Cash value of automobile for personal use.
•
Cash value of air transportation for personal use.
•
Wages of children or stepchildren working for a corporation.
•
Wages of children or stepchildren working for a sole proprietor or partnership where no exempt
relationship exists.
•
Wages paid for temporary or part-time work.
•
Wages paid for services performed outside the United States (except in Canada) by a citizen of the
U.S., in the employ of an American employer, should be reported as employment wages if the
employer’s business or employee’s residence is in the U.S.
•
Wages paid for services performed in the employ of an Indian tribe.
Exempt Wages
•
Wages paid to employees of a church, convention, or association of churches.
•
Wages paid to employees of an organization operated for religious purposes, and that is operated,
supervised, controlled, or principally supported by a church, convention, or association of churches.
•
Wages paid to a duly ordained, commissioned, or licensed minister of a church, in the exercise of the
ministry, or by a member of a religious order, in the exercise of duties required by such an order.
•
Wages paid for services at a school, college, or university, by a student enrolled and attending
classes there.
•
Wages paid to students working for credit in a program combining academic instruction with work
experience, such as Cooperative Business Education or Diversified Cooperative Training.
•
Services performed for a son, daughter, or spouse (including step relationships); or by children or
stepchildren under the age of 21 for their father or mother. When the employing unit is a partnership,
an exempt relationship must extend to all partners for the exemption to apply. This exemption does
not apply to corporations.
•
Cafeteria Plan payments if they are not reportable to the Internal Revenue Service.
Department of Revenue, Employer Guide to Reemployment Tax,

Page 10

•

Educational payments paid to, or on behalf of an employee if the employer will be able to exclude
such payments from income under s.127, IRC.

Employer Multi-Unit Reports
If an employer conducts business in more than one location in Florida, completion of a Multiple Worksite
Report (BLS-3020) will be required on a quarterly basis. This form must be mailed separately from the
Employer’s Quarterly Report.
This form lists work-site-specific name and address information for each unit on file. The employer must
provide the number of covered workers each month and the total quarterly wages for each work site. The
totals on the Multiple Worksite Report must agree with totals reported on the Employer’s Quarterly Report. If
work sites are acquired or sold, this should be noted in the comment section. Any missing name and
address information should be completed by the employer.
The employment and wage figures provided on these reports are the primary sources for Florida’s Labor
Market Statistical Programs. The Office of Labor Market Statistics provides data on the average annual
employment and wages in various industries and occupations. Florida’s Workers’ Compensation Program
uses average annual wages to determine maximum benefit amounts.
The labor market data is also used for determining education, employment, and training choices. Federal and
state funds are allocated to workforce development programs based on the data. Therefore, it is important
that all employers, including multiple units, have the most accurate industry codes. A complete description of
the nature of the business should be provided on the Florida Business Tax Application (DR-1).
Reporting Employees Contracted to Governmental or Nonprofit Educational Institutions
Private employers with a contract to provide services to a governmental or nonprofit educational
Institution must separately identify wages paid to employees who performed such services by submitting an
Employer’s Quarterly Report for Employees Contracted to Governmental or Nonprofit Educational Institutions
(RT-6EW). This form, which must be filed in addition to the Employer’s Quarterly Report, is available online at
floridarevenue.com/forms under the Reemployment Tax section.
The RT-6EW separately identifies wages paid to the individuals performing the services for the
educational institution. Employees whose wages are identified as being paid for this type of service may
be ineligible to receive reemployment assistance benefits based on these wages between academic years
and during vacation periods or holiday recess, when the employees have reasonable assurance of
performing services during the next school term or upon completion of the vacation period.

E-Verify Certification
Legal Requirements
Section 448.095, Florida Statutes, requires employers to verify each new employee’s employment eligibility
within three business days after the first day that the new employee begins working for salary, wages, or
other remuneration.
Private employers with 25 or more employees or public agencies are required to use E-Verify to validate that
newly hired employees are eligible for employment within the United States. E-Verify is a free, internet-based
application operated by the U.S. Department of Homeland Security that allows employers to electronically
verify employment eligibility of newly hired employees. Information on how to register and access the E-Verify
system is located on the Federal E-Verify website at e-verify.gov. If the E-Verify system is unavailable for
three business days after the first day the new employee begins working for salary, wages, or other
remuneration, an employer must use the Employment Eligibility Verification (federal form USCIS I-9) to verify
employment eligibility within the United States.
Employee Leasing Companies
An employee leasing company (ELC) is responsible for certifying the employment eligibility of any new
employee of a client company that meets the definition of a private employer with 25 or more employees or
public agency. Verification and certification of employment eligibility may be transferred from the ELC to the
client company only by written agreement or written understanding. If this occurs, the ELC will continue to file
reports with the Department, and the client company will be required to certify use of the E-Verify system or
Department of Revenue, Employer Guide to Reemployment Tax,

Page 11

federal form USCIS I-9.
Certification Process
Each public agency, private employer with 25 or more employees, or employee leasing company required to
use the E-Verify system must certify on its first reemployment tax return filed each calendar year that it used
E-Verify or the I-9 to confirm employment eligibility of each new employee. An employer not required to EVerify may voluntarily certify use of the E-Verify system on its first return filed each calendar year.
Certification must be completed by (1) the individual owner, (2) the corporate president, treasurer, or other
principal officer, or (3) a partner or member/managing member. Third party representatives who file reports
for employers may not certify on behalf of the employer.
Penalties
The Florida Department of Commerce is required to issue a fine of $1,000 per day if it is determined that the
E-Verify system was not used three times in a 24-month period. The fine will continue to accrue until the
employer demonstrates compliance with the law.
Additional information regarding the certification process may be found at floridarevenue.com/taxes/rt and
select the E-Verify (Employee Eligibility Verification) section.

Reporting Medium
Alternative Forms Reporting
Alternative forms reporting is when an employer uses a software reproduction of a tax form. Employer
representatives often use software packages to create required reports. Representatives purchasing
software packages from approved vendors do not need prior approval to submit reports. However, those
representatives creating their own software will need to obtain approval from the alternative forms
coordinator prior to submitting forms. Information on alternative forms reporting can be obtained from the
Department’s website at floridarevenue.com/forms and the bottom tab on that page provides a link to
approved alternative form vendor list.
Electronic Reporting and Payment Requirement Employers who employed 10 or more employees in any
quarter during the most recent state fiscal year (July through June) are required to file reports online,
including any corrections, for the next fiscal year using the Department’s file and pay website at
floridarevenue.com/taxes/filepay. Employers are also required to pay tax electronically.
The Department offers electronic filing and payment options that are safe, convenient, and free. You can
enroll online at floridarevenue.com/taxes/eEnroll. You can electronically file your quarterly report or pay
at floridarevenue.com/taxes/filepay without enrolling. However, if you do not enroll, you will have to enter
your contact information every time you file a report and enter your contact and banking information every
time you make an electronic payment. To use the website without enrolling, you will need your Federal
Employer Identification Number (FEIN) and reemployment tax account number.
Penalty for Failure to File Electronically
For employers who are required to file by electronic means, failure to do so will result in a penalty of $25
per report and $1 for each employee. The penalty for failing to submit payments by electronic means is
$25 per remittance submission.
Benefits of Filing and Paying Electronically The electronic file and pay option is available to all taxpayers,
not just those who are required to electronically file and pay. By submitting an Employer’s Quarterly Reports
(RT-6) and reemployment tax payments online, employers will enjoy these benefits:
•
Easy information retrieval. The online system automatically populates your report with a list of
employees. You just update the list each quarter.
•
Fewer mistakes. You simply enter each employee’s total wages for the quarter and the system
computes the tax for you. This reduces the chance of you receiving a bill due to a calculation error.
•
File early, pay on the due date. You can submit your electronic report and schedule the payment
before the due date. Funds will not be withdrawn from your bank account until the date you specified.
•
Immediate confirmation. You may print the confirmation as proof of filing timely.
•
Security and privacy. Information sent through the Department’s website is encrypted and secure.
•
View your tax rate. Tax rates are available online.
Department of Revenue, Employer Guide to Reemployment Tax,

Page 12

Timely Reporting and Payment
Correct payment and timely filing of reports will reduce costs. One of the most important ways to save money
is to receive credit for timely reporting of taxable wages. Wages that have been reported timely are used in
the computation of an employer’s tax rate. The more taxable wage credits the employer has, the lower the
benefit ratio used in the tax rate computation. The timely reported wage credits are divided into the benefits
charged to an employer’s account over a prior three-year period. The employer has the sole responsibility of
determining whether credit is received for taxable wages by filing reports in a timely manner.
Employers with timely payments also receive credit against FUTA taxes (review Federal Certification
paragraph on Page 18).
Installment Payment Option
Employers who file and pay timely are eligible to pay reemployment tax in installments, as long as that tax
is due in one of the first three quarters of the calendar year. When choosing the installment payment
option on the Employer’s Quarterly Report (RT-6), a $5 installment fee is required once per calendar year
and must be paid with the wage data and first installment payment for the quarter in which the installment
election is made.

Penalty and Interest for Late Filing and Payment
Timely reporting will avoid charges for late reports and payments. If reemployment tax is not paid on or
before the due date, interest will be charged on the full amount of tax due. Failure to file RT-6 reports timely
will result in a penalty charge of $25 for each 30 days, or fraction thereof, that the report is late.
Assessments
Failure to submit a report after being given reasonable opportunity to do so will result in an assessment of
tax due. The Department will determine, based on the employer’s tax history and other available
information, how much tax the employer is assessed for the quarter.
Liens
Unpaid tax, interest, penalty, or fees may cause a lien to be placed against the employer’s real and
personal property.
Tax Rate Consequences
Although penalties are assessed for late submission of reports, these penalties are small compared to
failing to receive credit for taxable payrolls for tax rate purposes. It is very important to submit reports
and tax payments timely. Completed quarterly reports must be submitted even if no tax is due.
Protest
If an employer protests liability under the reemployment assistance program law or protests the tax rate
assigned, the employer must file reports and pay taxes at the assigned tax rate pending a hearing on the
protest. If the protest is ruled in the employer’s favor, an adjustment or refund will be granted by the
Department for applicable taxes paid.

Installment Payment Chart

1st Quarter
(ends Mar. 31)

2nd Quarter
(ends June 30)

3rd quarter
(ends Sept. 30)

4th quarter
(ends Dec. 31)

4 equal
payments
3 equal
payments
2 equal
payments

Pay by
Apr. 30

Pay by
July 31

Pay by
Oct. 31

Pay by
Dec. 31

1/4 of total
amount

1/4 of total
amount

1/4 of total
amount

1/4 of total
amount

1/3 of total
amount

1/3 of total
amount

1/3 of total
amount

1/2 of total
amount

1/2 of total
amount

Not affected.
Pay in full.

Department of Revenue, Employer Guide to Reemployment Tax,

Pay by
Jan. 31

Total amount

Page 13

Correcting Your Report
Corrections to quarterly reports that have been filed with the Department can be made online by going to the
Department’s File and Pay website at floridarevenue.com/taxes/filepay or by submitting an electronic
Correction to Employer’s Quarterly or Annual Domestic Report (RT-8A). If the employer is required to file
reports electronically, then the employer is also required to file corrections electronically. The correct
information must state the reasons for such adjustments, i.e., incorrect gross wages or the employee should
have been reported to another state.
If the employer did not file any employment reports, RT-6 reports must be submitted, and tax and interest
paid going back to the date of employment of the worker(s). The Department can require the employer to file
returns as far back as five years.
The Department can also require the employer to file corrected returns as far back as five years.
When employment information or wages are omitted, the Department will send a request to the employer for
the missing information. It is to the employer’s advantage to reply immediately; otherwise, penalties may be
charged, and incorrect or incomplete information could be processed to the employer’s account.
New Hire Reporting
All employers, regardless of size, are required to report all new hires or rehires within 20 days of an
employee’s hire date. Information about new hire reporting is at servicesforemployers.floridarevenue.com
or call 888-854-4791. The fax number for new hire reporting is 888-854-4762.
Inactivation of Account
An employer’s account is made inactive when the employer ceases to have payroll and notifies the
Department of the date this occurred. The account will automatically be inactivated if RT-6 employment
reports are submitted with zero gross wages for eight consecutive calendar quarters. If an account is
inactive and employment resumes, the Department must be notified, wages paid must be reported, and
taxes must be paid.
An Employer Account Change Form (RTS-3) should be used to reopen an account. Although, it may be
necessary to submit a new Florida Business Tax Application (DR-1) if any account information has changed
(particularly eServices contact or banking information) since the original DR-1 application was submitted.
Termination of Liability
Termination of liability is not the same as inactivating an account. An employer’s account is eligible for
termination if the liability requirements have not been met for an entire calendar year. In this instance,
application for termination of liability must be submitted no later than April 30 of the following year to be
considered timely. Once an account is officially terminated, liability must be reestablished as described in
this guide.
Employers are responsible for submitting reports until they are officially notified that liability has been
terminated.
When to Notify the Department
Submit an Employer Account Change Form (RTS-3), or make the change on the Department’s website, if one
or more of the following business activities occur (some may also require submission of a DR-1):
•
Location or mailing address change
•
Cease employment
•
Close the business
•
Use of an employee leasing company
•
Add or change a business federal employer identification number (FEIN)
•
Inactivate the business
•
Incorporate the business (including professional associations)
•
Incorporation change (such as S Corp to C Corp)
•
Involuntary dissolution by the Secretary of State
•
Legal entity changes (such as partnership to corporation)
•
Location changes (new ones added, or old ones deleted)
•
Partner or partnership change
•
Sell all or part of the business
•
Trade name change
Department of Revenue, Employer Guide to Reemployment Tax,

Page 14

•

•
•
•

Bankruptcy - A copy of the Petition Notice issued by the court should be mailed to the:
Bankruptcy Section
Florida Department of Revenue
PO Box 6668
Tallahassee FL 32314-6668
Authorization for Common Paymaster - Notify the Department on the Application for Common
Paymaster (RTS-70)
Power of Attorney - Notify the Department on the Power of Attorney and Declaration of
Representative form (DR-835)
Purchase all or part of a business – Notify the Department on the Report to Determine Succession
and Application for Transfer of Experience Rating Records (RTS-1S)

Tax Audits and Required Employer Records
Audit Purpose
Tax auditors regularly carry out complete payroll audits of employers’ books and records. The auditors
use generally accepted auditing standards and procedures, covering a specified period of time during
which an employer is liable for reporting under the law or is found to be liable as a result of the audit.
A well-planned and cost-effective field audit program is an efficient means of ensuring compliance with state
reemployment tax laws and timely collection of taxes on an equitable basis.
Records Required and Examined
Florida law requires the records of an employing unit be open for inspection by the Department at any
reasonable hour when the firm’s business is normally conducted.
The employer must maintain true and accurate work records for a period of five calendar years. If the
employment records are not kept in Florida, the employer must designate a resident agent in Florida through
whom such records may be obtained upon request. Failure to produce all requested work records will result in
the loss of an employer’s earned tax rate and the assignment of the standard rate (5.4%) until the quarter
after production of the records.
The Florida Administrative Code outlines the specific information an employer is required to maintain in the
payroll records. The types of records needed for an audit may include, but are not limited to: time cards,
individual earnings records, check registers, check stubs, canceled checks, cash disbursement journals,
payroll ledgers, payroll summaries, petty cash, work orders/invoices, master vendor files, general journals,
general ledgers, income statements, balance sheets, RT-6s (SUTA), Form 940 (FUTA), Forms 941, 942, 943
(as applicable), Forms W-2 and W-3, Forms 1099 and 1096, Schedule C (sole proprietor), Form 1065
(partnership), partnership agreements, Form 1120 and all attachments (C Corporation), Form 1120S and all
attachments (S Corporation), corporate charters, independent contractor agreements, and charts of accounts.
An employing unit may be held liable as an employer, regardless of the number of workers employed.
Adequate payroll records will reveal whether the employer has or has not met liability criteria for the payment
of reemployment taxes.

Tax Rate
Regular
The method of determining varying tax rates assigned to taxpaying employers is referred to as
“experience rating.” Under the reemployment assistance program law, an employer’s experience rate is
based on the employer’s own employment records in relation to the employment records of all other
employers.
The purpose of the experience rating provision is to keep the Unemployment Compensation Trust Fund at a
stabilized percentage of the taxable payrolls reported by all employers. The experience rating provision also
helps make sure employers pay their fair share based on their own experience rating.
Variable adjustment factors and constant adjustment factors are computed yearly. These factors are used to
help compensate the trust fund for the benefits paid to eligible claimants who worked for employers whose
Department of Revenue, Employer Guide to Reemployment Tax,

Page 15

taxes were less than the amount of benefits paid, and benefit payments that are not chargeable to any
employer’s account. These charges are distributed to all rated employer accounts.
Once rated, an employer’s tax rate may vary each year according to their employment experience.
The tax rate can vary from the maximum of 5.4% (0.0540) to the minimum rate, which varies every year
based on the adjustment factors but can never be lower than 0.1% (0.0010). Employers participating in an
approved Short-Time Compensation Plan are subject to a rate of 1.0% (0.01) above the current maximum
rate. Even though an employer may no longer be participating in the program, all benefits charged as a result
of Short-Time Compensation will be used in the tax rate computation.
Economic conditions resulting in abnormally high unemployment accompanied by high benefit charges cause
a severe drain on the Unemployment Compensation Trust Fund. The effect is an increase in the adjustment
factors, which in turn increases tax rates for all rated employers. Conversely, when unemployment is low, the
adjustment factors decrease and tax rates for rated employers are reduced accordingly.
When an employer first becomes liable for the payment of reemployment taxes, the beginning tax rate is
2.7% (0.0270) until the employer has reported for approximately 10 quarters, depending on the quarter of the
year the employer established liability. The account will then be rated by dividing the benefits charged to the
account by the taxable payroll on which wages were reported by the end of the quarter preceding the quarter
in which the tax rate is to be computed. Once an account has completed the required quarters of reporting, it
will be considered for an experience rate at the beginning of each calendar year thereafter.
The payroll used in annual rate computations may vary from seven to twelve calendar quarters. The tax rate
is computed using the sum of three factors:
•
Benefit ratio
•
Variable adjustment factor
•
Final adjustment factor
To obtain the variable adjustment factor, the benefit ratio is multiplied by a common multiplier, which varies
from year to year. The final adjustment factor, which also varies from year to year, is the same for all
employers and ultimately determines the minimum rate for the year.
Legislation enacted in 2021 changed Florida’s reemployment tax rate computation for rates effective 2021
through 2025. The rate calculation for 2021 excludes all benefit charges from the second quarter of 2020
and prevents the application of the positive adjustment factor, which normally increases rates automatically
if the Unemployment Compensation Trust Fund balance is below a certain amount.
Tax rates effective January 1, 2022, will exclude charges from the second, third, and fourth quarters of
2020 and all benefit charges paid as a direct result of a government order to close or reduce capacity of a
business due to COVID-19, as determined by the Florida Department of Commerce. The tax rate
calculation will also exclude the application of the positive adjustment factor (trust fund trigger).
Benefit charges from the first and second quarters of 2021 may be decreased if the Florida Legislature’s
Office of Economic and Demographic Research (EDR) estimates that total tax collections for rate year 2022
will exceed $475.5 million. Since EDR has until January 1, 2022, to advise the Department of Revenue
whether to decrease benefit charges, the Department of Revenue has until March 1, 2022, to post rates for
the 2022 calendar year.
Tax rates effective January 1, 2023, through December 31, 2025, will exclude charges from the second,
third, and fourth quarters of 2020 and all benefit charges paid as a direct result of a government order to
close or reduce capacity of a business due to COVID-19, as determined by the Florida Department of
Commerce. The tax rate calculation will also exclude the application of the positive adjustment factor (trust
fund trigger). Benefit charges from the first and second quarters of 2021 may be decreased if EDR estimates
that total tax collections for rate year 2022 will exceed $475.5 million. These changes to the tax rate
calculation are repealed if the trust fund reaches $4,071,519,600 on June 1 of any year.
Reemployment Tax Rate Notices (RT-20) are mailed to employers immediately prior to the new tax rate
effective date. A protest of the assigned tax rate must be in writing, within 20 days from the date the
Reemployment Tax Rate Notice is mailed.

Department of Revenue, Employer Guide to Reemployment Tax,

Page 16

Any employer who has been billed for an outstanding tax debt for one year or longer will be assigned the
penalty tax rate of 5.4% (0.0540), unless payment is received prior to the effective date of the new tax
rate. Employers are notified of any outstanding tax debt by mail through a reemployment tax Summary of
Amount Past Due (RT-27). Employers can view their tax rate by logging in to their account at
floridarevenue.com/taxes/filepay.
Successor Accounts
Any individual, partnership, or corporation that becomes an employer by succession has the option of
transferring the predecessor’s tax rate or taking the initial rate of 2.7% (0.0270). If the new owner becomes
liable by succession and elects to transfer the predecessor’s tax rate, a Report to Determine Succession
and Application for Transfer of Experience Rating Records (RTS-1S) must be signed and returned within 30
days from the date the notification of option is mailed to the successor, or the transfer will be denied.
The form must have the signature of the owner or a corporate officer. To qualify for a tax rate transfer, the
successor employer must have notified the Department of the acquisition within 90 days of the date the
succession began; otherwise, the transfer will be denied.
If the new owner is already liable, and elects to transfer the predecessor’s tax rate history, the RTS-1S must
be signed, as stated above, and returned within 30 days from the date the notification of option is mailed to
the successor. A tax rate will be computed based on the combined employer histories. If the form is not
returned within 30 days, the transfer of records will be denied. If the successor does not elect the transfer,
the new owner’s existing tax rate will apply.
Any successor employer requesting transfer of experience rating records of the predecessor must submit
payment, by certified funds, for debt owed by the predecessor, if any, within 30 days of the mailing date of
the notice listing the total amount due or the transfer will be denied. Also, the successor’s account will be
charged with any benefits paid to the individuals who were