Florida What Employers Need to Know about Reemployment Tax R.07/20

What Employers Need to Know about Reemployment Tax R.07/20
Form RT-800058
What Employers Need to Know About
Reemployment Tax

RT-800058
R. 08/23

What is Reemployment Assistance?
Reemployment assistance gives partial, temporary income to workers who lose their jobs through no fault of
their own and are able and available for work. The assistance to jobless workers provides help to their families
and the business community.

Who Pays for Reemployment Assistance?
You, the employer, pay for reemployment assistance through a tax managed by the Florida Department of
Revenue. The tax is one of your business costs. Workers do not pay reemployment tax and employers must
not make payroll deductions for this purpose. The consumer bears this cost in the price of the goods or
services you sell. Thus, the burden of reemployment assistance is shared by all. Reemployment tax
payments go into a fund that is used to pay eligible unemployment claims.

Who is Liable for Reemployment Tax?
A new business must report its initial employment in the month following the calendar quarter in which employment
begins. You can register to file reports and pay tax online at floridarevenue.com/taxes/registration or submit
a paper Florida Business Tax Application (Form DR-1). The online application will guide you through the
registration application to help you determine your tax obligations. You are liable if you meet any of the
following conditions:
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You have quarterly payroll of $1,500 or more in a calendar year;
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You have one or more employees for a day (or portion of a day) during any 20 weeks in a calendar year;
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You are an agricultural employer and have five or more workers for a day (or portion of a day) during any 20
weeks in a calendar year, or a cash payroll of $10,000 or more in any calendar quarter;
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You are a domestic employer with a cash payroll of $1,000 or more in a calendar quarter;
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You purchase all or part of a liable business, or the combination of your existing payroll or employment with
that of the business you purchased meets the liability criteria;
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You are a nonprofit organization as defined in section 3306(c)(8) of the Federal Unemployment Tax Act
and section 501(c)(3) of the Internal Revenue Code and have four or more employees for a day (or portion
of a day) during any 20 weeks in a calendar year;
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You are a state, county, city, or joint governmental unit; or
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You are an Indian tribe or tribal unit.
Nonprofit organizations, governmental agencies, and Indian tribes are given the option of paying their
reemployment insurance costs by the tax-paying method or the reimbursable method. The reimbursable
employer must repay benefits paid to former employees on a dollar-for-dollar basis. Regardless of the
method of payment, these employers must submit wage reports each quarter. If an employer chooses to
change the payment method, it must sign a special election form and stay with the chosen method for at least
two years. More information is available in Information for Nonprofit Organizations (RTS-1C) available at
floridarevenue.com/forms in the Reemployment Tax section.
A liable employer must display the poster To Employees (English version RT-83 and Spanish version
RT-83SP) where all employees can see it. These posters are available at floridarevenue.com/forms in the
Reemployment Tax section.

Voluntary Coverage
An employer that is not required to pay reemployment tax may elect to voluntarily provide reemployment
coverage for its workers. To apply for voluntary coverage, complete and submit the voluntary Election to
Become an Employer Under the Florida Reemployment Assistance Program Law (RTS-2), available at
floridarevenue.com/forms in the Reemployment Tax section.

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Definitions

Employment − Any service done by an employee for the employer.
Employee − A person who is subject to the will and control of the employer as to what must be done and
how it is done.
Casual Labor − Work that is not in the course of the employer’s regular trade or business and which is
occasional, incidental, or irregular. Do not confuse casual labor with temporary or part-time employment. A
corporation cannot have casual labor.
Independent Contractor − A person not subject to the will and control of the employer. The employer does
not control or direct the manner or method of job performance. The general public is aware that the person
is an independent contractor.
Officers of a Corporation − Any officer of a corporation performing services for the corporation is an
employee of the corporation during tenure of office, even when no compensation is received for such
services. Compensation, other than dividends upon shares of stock and board of director fees, is presumed
to be payment for services performed.
Limited Liability Company (LLC) – A limited liability company is treated the same as it is classified for
federal income tax purposes.
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A person performing services for an LLC that is treated as a corporation for federal income tax
purposes, is an employee.
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A person, other than a partner or exempt employee of a partnership, performing services for an LLC
that is treated as a partnership for federal income tax purposes, is an employee.
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A person, other than the sole proprietor or an exempt employee of a sole proprietorship, performing
services for an LLC that is treated as a sole proprietorship for federal income tax purposes, is an
employee.
A single-member LLC may be treated as a corporation or a sole proprietorship for federal income tax
purposes.
S Corporation − An election for a corporation for federal income tax purposes. Salaries paid to corporate
officers are considered wages. All or part of the distribution of income paid to corporate officers who are
active in the business and are performing services for the business can be considered wages.
Employee Leasing Company − An employing unit that has a valid and active license under Chapter 468,
Florida Statutes (F.S.).
Salesperson − Any individual paid solely by commission under your direction and control is an employee.
The law provides an exemption for insurance agents, real estate agents, and barbers who are paid solely
by commission. If they are paid by salary only or salary and commission, both are taxable and subject to
reemployment tax. Note: There is no federal unemployment tax exemption for barbers paid solely by
commission.
Agricultural Labor − Any service performed on a farm in the employ of the owner, tenant, or any other
operator of a farm in connection with the production or harvesting of any agricultural or horticultural
commodity or in connection with the maintenance or operation of farm equipment or grounds.

Employment Not Covered
Some types of work are not covered by reemployment assistance and some wages paid for services are not
subject to reemployment tax. These exemptions include:
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Employees of a church, or convention, or association of churches; or of organizations operated primarily
for religious purposes that are operated, supervised, controlled, or principally supported by a church, or
convention or association of churches.
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Services performed by aliens in agricultural labor, who have entered the United States pursuant to
section 1184(c) [formerly section 214(c)] and section 1101(a)(15)(H) [formerly section 101(a)(15)(H)] of
the Immigration and Nationality Act.
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Services performed by nonresident aliens, who are temporarily present in the United States as nonimmigrants under subparagraph (F) or (J) of section 1101(a)(15) [formerly section 101(a)(15)] of the
Immigration and Nationality Act.
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Services for a school, college, or university by a student enrolled and attending classes there.
Work on a fishing vessel under 10 net tons.
Services performed as a student nurse in a hospital or nurses’ training school, a medical school intern in
a hospital, or a hospital patient.
Students working for credit in a school program such as Credit by Exam (CBE) or Diversified Career
Technology (DCT).
Persons under age 18 delivering or distributing newspapers.
Service for government by elected officials; members of the legislature and judiciary; those serving on a
temporary basis in cases of fire, storm, etc.; or serving in an advisory capacity that ordinarily does not
require more than eight hours per week.
Services performed for a son, daughter, or spouse; or by children under the age of 21 for their father or
mother. When the employing unit is a partnership, an exempt relationship must exist between all
partners or there is no exemption. This exemption does not apply to corporations.
Direct sellers who are contracted to sell or solicit consumer goods in homes or places other than a
permanent retail establishment, and whose substantial remuneration is directly related to sales.
Services performed by a sole proprietor or 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 performed by insurance agents, real estate agents, or barbers when paid solely by
commission.
Speech, occupational, and physical therapists who are not salaried and working pursuant to a written
contract with a home health agency as defined in section 400.462, F.S.
Service performed by an individual for remuneration for a private, for-profit delivery or messenger
service, if certain conditions are met.
Service performed by an inmate of a penal institution (work release programs).

Wages
Wages are payments for services in employment, including commissions, bonuses, back pay awards, and the
cash value of all payments in any medium other than cash. The cash value of meals and lodging will be
exempt if it is included as a condition of employment for the convenience of the employer.
Sickness and accident disability payments paid by an employing unit to an employee in the six calendar
months after the calendar month the employee stopped working are wages. Tips are covered wages if
received while performing services that constitute employment and are included in a written statement
furnished by the employee to the employer. Payments made under a workers’ compensation law are not
wages.

Reporting Wages
Wages must be reported on an Employer’s Quarterly Report (RT-6), available at floridarevenue.com/forms
in the Reemployment Tax section. The report must list total wages paid to covered workers, excess wages,
taxable wages, and tax due. Each report must show the employee’s name, social security number, gross
wages, and taxable wages paid to each employee during the calendar quarter.
An employing unit that files an erroneous, incomplete, or insufficient report shall be billed a penalty of $50 or
10% of any tax due, whichever is greater. The penalty shall not exceed $300 per report.
Social security numbers (SSNs) are used by the Florida Department of Revenue as unique identifiers for the
administration of Florida’s taxes. Social security numbers obtained for tax administration purposes are
confidential under sections 213.053 and 119.071, F.S., and not subject to disclosure as public records.
Collection of your SSN is authorized under state and federal law. Visit floridarevenue.com/privacy for
more information regarding the state and federal law governing the collection, use, or release of SSNs,
including authorized exceptions.

Multiple Worksites
If an employer is operating two business units and the secondary unit(s) has a cumulative total of at least ten
employees, a Multiple Worksite Report (BLS-3020) must be submitted. The form is available through the U.S.
Bureau of Labor Statistics at https://www.bls.gov/respondents/mwr/forms/mwr-fl.pdf.

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The completed form must be filed with the:
Florida Department of Commerce
Workforce Statistics and Economic Research
107 E Madison St MSC #G-020
Tallahassee Florida 32399-4111
This form, together with its instructions, may be obtained online at the website provided or by contacting the
Florida Department of Commerce at the address above.

Annual Filing Option for Domestic Employers
An employer liable for reemployment tax may select an annual filing option if all the employees exclusively
perform services that constitute domestic (household) service, and the employer is eligible for an earned tax
rate. An Application for Annual Filing for Employers of Domestic Employees (RT-7A) who perform domestic
services must be submitted by December 1 to qualify for annual filing in the next calendar year. The form is
available at floridarevenue.com/forms in the Reemployment Tax section.

Electronic Filing and Payment
You must electronically file your Employer’s Quarterly Report (RT-6), including any corrections, and
electronically pay the tax if you are an employer who employed 10 or more employees in any quarter during
the State of Florida’s prior fiscal year (July 1 – June 30).
Corrections to either the quarterly or annual reports are made electronically using the Correction to
Employer’s Quarterly or Annual Domestic Report (RT-8A) which is located online at
floridarevenue.com/taxes/filepay.
The Department of Revenue will notify employers meeting the threshold for electronic filing and payment.
The penalty for failure to electronically file a report is $25 for each report and $1 for each employee. The
penalty for failure to electronically pay tax is $25 for each remittance by an employer. You can obtain a waiver
from electronic filing if you have a valid business reason. However, there is no waiver from electronic
payment.

Electronic Payment Deadlines
When you electronically pay, or electronically file and pay at the same time, you must initiate your
electronic payment and receive a confirmation number no later than 5 p.m. ET on the business day
prior to the payment deadline to avoid penalty and interest. Keep a record of your confirmation numbers.
For a list of electronic payment deadlines, visit floridarevenue.com/forms and select the current year Florida
eServices Calendar of Electronic Payment Deadlines (Form DR-659) under the eServices section.

Importance of Reporting Timely
Employers have one month after the end of each quarter to file reports and pay tax. To avoid penalty and
interest, you must report and pay your tax on time. Unpaid tax will affect your future tax rate. Reports and
payments sent by mail are considered filed and paid from the date postmarked. A late filing penalty is
charged at $25 for each 30 days or fraction thereof that a report is delinquent. Interest is charged on the
unpaid tax from the original due date until the tax is paid.

Your Tax Rate and How Much You Pay
The tax rate for new employers is 0.0270 (2.7%). The first $7,000 in wages paid to each employee during a
calendar year are taxable wages. Any amount over $7,000 for a calendar year are excess wages and are not
subject to reemployment tax. Excess wages can never be greater than gross wages. After a qualifying period,
employers with a stable employment history are eligible for a lower tax rate.
When a business is transferred, the successor may count wages paid to an employee by the predecessor to
determine taxable wages. Form RT-6NF allows you to report out-of-state wages paid to employees who
worked in another state and are transferred to Florida. The out-of-state wages that were already taxed are
credited when calculating taxable wages reportable to Florida. The form is available at
floridarevenue.com/forms in the Reemployment Tax section.
The initial rate for employers is 0.0270 (2.7%) and will remain in effect until the employer has reported for 10
quarters. The account will then be rated by dividing the total benefits charged to the account by the taxable
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payroll reported for the first seven of the last nine quarters immediately preceding the quarter for which the
rate is effective.
The one exception would be employers liable by succession who choose to accept the tax rate of the
previous employer, along with the responsibility of paying any outstanding amounts due. Successors must
complete the Report to Determine Succession and Application for Transfer of Experience Rating Records
(RTS-1S) within 90 days of the date the succession commenced. The form is available at
floridarevenue.com/forms in the Reemployment Tax section.
The maximum tax rate allowed by law is 0.0540 (5.4%), except for employers participating in the Short
Time Compensation Program. The Reemployment Tax Rate Notice (RT-20) is mailed to each employer
in December. You may appeal the tax rate within 20 days from the date of notification (mail date printed
on the rate notice).

Termination of Coverage
You will be eligible for termination if you have not met any liability criteria for an entire calendar year, or if the
business closes (which is different than just selling assets, selling stock, or merging into another business to
be the continuing entity). If you qualify, because you have not paid wages for a year, you must apply for
termination of coverage by April 30 of the following year. Contact the Department of Revenue in writing to
close the account of a closed business after the final wages have been paid. Once liability is terminated, you
must reestablish liability in the same manner as any new employing unit.

Claims for Benefits
Unemployed workers who are covered under the Florida Reemployment Assistance Program Law will receive
benefits if they are eligible and qualified. Prompt and accurate information from employers is vital to the
establishment of a claimant’s right to benefits. You must furnish information timely when requested. This is to
your advantage because it helps protect your tax rate. Information must be complete, accurate, and factual.
For more information about the claims process, including qualification requirements and disqualification
reasons, go to floridajobs.org.

Protest and Appeal
One goal of the Reemployment Assistance Program Tax Law is to provide a fair and impartial hearing to
resolve disputes. The Department of Revenue will make every attempt to resolve informal protests. If not
resolved, formal protests and appeals will be directed to the Florida Department of Commerce,
Reemployment Assistance Program. Appeals must be filed timely, must be in writing, and must clearly state
your reasons for appeal.

Employer 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. 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.
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
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E-Verify or the I-9 to confirm employment eligibility of each new employee. If you are not a public agency or
private employer with 25 or more employees, and you use the E-Verify system to validate employment
eligibility, you are not required but may elect to certify use of E-Verify on a voluntary basis.

Changes to Your Business?
You must notify the Department immediately if your business name, business location, or mailing address
changes or if you close or sell your business. It’s fast and easy to notify the Department online by visiting
floridarevenue.com/taxes/updateaccount. You can also submit new information on a paper Employer
Account Change Form (RTS-3) available for download at floridarevenue.com/forms in the Reemployment
Tax section.

Reference Material
Laws – Tax laws are available at leg.state.fl.us.
Rules – Rules are available at flrules.org.
Download these brochures at floridarevenue.com/forms.
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RT- 800001 – Employer Guide to Reemployment Assistance Benefits
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RT- 800002 – Employer Guide to Reemployment Tax
Tax forms and other publications are available at floridarevenue.com/forms.
To speak with a Department of Revenue representative, call Taxpayer Services at 850-488-6800, Monday
through Friday, excluding holidays.
The fillable Form, Multiple Worksite Report (BLS-3020) is available at
https://www.bls.gov/respondents/mwr/forms/mwr-fl.pdf. To speak with a Florida Department of
Commerce, Labor Market Statistics representative call 800-672-4664.
For claims and benefits information, contact the Florida Department of Commerce at 877-846-8770.
For appeals information, contact the Florida Department of Commerce, Reemployment Assistance Program
at 877-846-8770.
Information and the following tutorials are available at floridarevenue.com/taxes/education.

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