Florida Information for Non-Profit Organizations R.01/13

Information for Non-Profit Organizations R.01/13
Form RTS-1C
Information for Nonprofit Organizations

RTS-1C
R. 10/17
TC

Rule 73B-10.037
Florida Administrative Code
Effective Date 10/17

This bulletin is to provide nonprofit employers with facts
regarding the Florida reemployment assistance program
law (formerly unemployment compensation law).
Most nonprofit organizations exempt under s. 3306(C)(8)
of the Internal Revenue Code regarding the Federal
Unemployment Tax Act, who employed four or more
workers for twenty or more weeks in a calendar year,
are required to cover their employees under the Florida
reemployment assistance program law. The law does not
cover service performed:
1.	

By an employee of a church or convention or
association of churches or an organization operated
primarily for religious purposes and which is
managed, supervised, controlled, or principally
supported by a church or convention or association
of churches.

2.	

By a duly ordained, commissioned, or licensed
minister of a church in the performance of his or her
ministry or by a member of a religious order in the
fulfillment of duties required by the order.

3. 	

In a facility that provides a program of rehabilitation
for individuals whose earning capacity is impaired
by age or physical or mental deficiency or injury.
Anyone providing work for pay for individuals
who, because of their impaired physical or mental
capacity, cannot be readily absorbed in the
competitive labor market or individuals receiving
such rehabilitation or work for pay are also not
covered by this law.

4. 	

As part of a reemployment work-relief or worktraining program assisted or financed by any
federal agency or an agency of a state or political
subdivision, by an individual receiving such work
relief or work training. This does not apply to
reemployment work-relief or work-training
programs for which reemployment assistance
coverage is required under a federal law, rule, or
regulation.

Payment by Tax Rate Method:
The beginning tax rate by law is .0270 (2.7 percent).
This continues until the employer’s record has been
chargeable with benefits for usually eight calendar
quarters, or they have filed ten quarterly reports with
wages. The .0270 (2.7 percent) tax will be computed on
all employees’ taxable wages for the calendar year.

For employers electing the tax rate method of payment,
a tax rate will be computed at the end of the ten quarters
based on a comparison of benefits paid to former
employees and taxable payroll reported timely. Certain
adjustment factors, primarily based on the economic
condition of the state, are added to this quotient.
Payment by Reimbursement Method:
A nonprofit employer may elect to reimburse the Florida
Unemployment Compensation Trust Fund for the
benefits that are paid to former employees on a dollar for
dollar basis. You must submit an Election of Nonprofit
Organization Method of Payment Under the Florida
Reemployment Tax Law (RT-28, formerly UCT-28). Your
election must be for a minimum of two years and for a
new employer, the election must be filed within thirty days
after notification of liability by the Department. You may
download this form at floridarevenue.com/forms.
Sharing of Benefit Costs Under the Reimbursement
Method:
The law permits two or more nonprofit employers a
second option of electing the reimbursement method as
a group, thereby sharing the cost of benefits paid to their
former employees. The two or more employers involved
must appoint an agent for the group and the election
must extend over two calendar years. Benefits charged
to the group will be paid by each member in proportion
to the wages paid by that member. Therefore, a member
without charges could be required to pay for the charges
of another member of the group.
Also, a member could have other members pay a portion
of his charges. The group’s agent would submit all
reports and payments for the entire group and act as their
spokesperson.
Changing Methods:
A nonprofit employer using the tax rate method may
change to the reimbursement method at a later date
by submitting Form RT-28 by December 1, prior to the
calendar year you wish to begin using the reimbursement
method. You may download this form from our Internet
site.
Nonprofit employers using the reimbursement method

floridarevenue.com

RTS-1C
R. 10/17
Page 2

may change to the tax rate method by submitting Form
RT-28 when the reimbursement period has been fulfilled.
You must submit this form by December 1, of the year
before the change is to be effective. You may obtain the
form from our Internet site.
Reimbursement Versus Tax Rate Method:
In deciding whether you should elect the reimbursement
method or the tax rate method, several factors must be
considered. Using the tax rate method can allow you
to estimate with reasonable accuracy the cost to your
budget. There is a possibility of earning a lower tax rate
in the future if you have a stable employment record.
Under the reimbursement method, you have no such
basis for cost estimating. Your cost will be based solely
on benefits paid to your former employees (or under the
group method for a percentage of the benefits paid to
former employees of any member of the group). Also,
the cost of any sudden or unexpected layoffs must be
borne immediately as you will be billed quarterly for
reimbursement of benefits paid. Damage to your place of
business by fire, hurricanes, or other similar unexpected
disasters could result in your employees becoming
unemployed and eligible for reemployment assistance
benefits.
By paying the tax, you are assured that your tax rate will

not vary for the first two years regardless of the number
of claims filed by your former employees. The .0270
(2.7 percent) initial rate will be in force during this period.
At the end of this time, your tax rate may vary up or down
according to your record. The tax rate is based on a
comparison of benefits paid to former employees and
taxable payroll reported timely. The higher the amount of
benefits paid compared to your taxable payroll, the higher
the tax rate; and conversely, the smaller the amount of
benefits paid, the better the opportunity for a lower tax
rate.
Notification of Charges and Payment:
Employers whose accounts may be charged with
benefit payments will be notified when a claim is filed.
Approximately six weeks after the end of a quarter, a
Notice of Benefits Paid (RT-1, formerly UCT-1) showing
all charges for that quarter will be sent to the employer.
Only the reimbursable employer is required to forward
payment for the charges shown on the statement. The
tax rate method employer’s charges will be reflected in
future tax rates.
Whether you use the tax rate method or elect to use the
reimbursement method, no part of the payment(s) made
for reemployment assistance tax is to be deducted from
wages paid to your employees.
For more detailed information, see Section 443, Florida
Statute, and Chapter 73B-10 Florida Administrative
Code.

Contact Us
Information, forms, and tutorials are available on our Internet site:
	floridarevenue.com
To speak with a Department representative, call Taxpayer Services, Monday through Friday, excluding holidays, at
850-488-6800.
To find a taxpayer service center near you, go to: floridarevenue.com/taxes/servicecenters
For written replies to tax questions, write to:
Taxpayer Services - Mail Stop 3-2000
Florida Department of Revenue
5050 W Tennessee St
Tallahassee FL 32399-0112
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