Florida Senate - 2009 PROPOSED COMMITTEE SUBSTITUTE
Bill No. SB 810
Barcode 166284
CM.CM.04681
Proposed Committee Substitute by the Committee on Commerce
1 A bill to be entitled
2 An act relating to unemployment compensation trust fund;
3 amending s. 443.1217, F.S.; raising the amount of an employee’s
4 wages subject to an employer’s contribution to the unemployment
5 compensation trust fund with a reversion to current law after
6 January 1, 2015; amending s. 443.131, F.S.; revising the rate
7 and recoupment period for computing the employer contribution to
8 the unemployment compensation trust fund with a reversion to
9 current law for recoupment after January 1, 2015; providing the
10 calculation for lowering an employer’s contribution to the
11 unemployment compensation trust fund under certain circumstances
12 beginning January 1, 2015; providing for a suspension of
13 lowering the employer’s contribution under certain
14 circumstances; providing a definition of taxable payroll;
15 amending s. 443.191, F.S.; providing for advances to be credited
16 to the unemployment compensation trust fund; providing authority
17 to the Governor to request advances; adding reference to federal
18 provision related to advances and that funds for advances may
19 only be used for the payment of benefits or expenses; providing
20 an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Paragraph (a) of subsection (2) of section
25 443.1217, Florida Statutes, is amended to read:
26 443.1217 Wages.—
27 (2) For the purpose of determining an employer’s
28 contributions, the following wages are exempt from this chapter:
29 (a) That part of remuneration paid to an individual by an
30 employer for employment during a calendar year in excess of the
31 first $8,500 $7,000 of remuneration paid to the individual by
32 the employer or his or her predecessor during that calendar
33 year, unless that part of the remuneration is subject to a tax,
34 under a federal law imposing the tax, against which credit may
35 be taken for contributions required to be paid into a state
36 unemployment fund. As used in this section only, the term
37 “employment” includes services constituting employment under any
38 employment security law of another state or of the Federal
39 Government. Beginning January 1, 2015, the part of remuneration
40 paid to an individual by an employer for employment during a
41 calendar year in excess of the first $7,000 is exempt from this
42 chapter.
43 Section 2. Paragraph (e) of subsection (3) of section
44 443.131, Florida Statutes, is amended to read:
45 443.131 Contributions.—
46 (3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT
47 EXPERIENCE.—
48 (e) Assignment of variations from the standard rate.—
49 1. The tax collection service provider shall assign a
50 variation from the standard rate of contributions for each
51 calendar year to each eligible employer. In determining the
52 contribution rate, varying from the standard rate to be assigned
53 each employer, adjustment factors computed under sub
54 subparagraphs a.-c. shall be added to the benefit ratio. This
55 addition shall be accomplished in two steps by adding a variable
56 adjustment factor and a final adjustment factor. The sum of
57 these adjustment factors computed under sub-subparagraphs a.-c.
58 shall first be algebraically summed. The sum of these adjustment
59 factors shall next be divided by a gross benefit ratio
60 determined as follows: Total benefit payments for the 3-year
61 period described in subparagraph (b)2. shall be charged to
62 employers eligible for a variation from the standard rate, minus
63 excess payments for the same period, divided by taxable payroll
64 entering into the computation of individual benefit ratios for
65 the calendar year for which the contribution rate is being
66 computed. The ratio of the sum of the adjustment factors
67 computed under sub-subparagraphs a.-c. to the gross benefit
68 ratio shall be multiplied by each individual benefit ratio that
69 is less than the maximum contribution rate to obtain variable
70 adjustment factors; except that in any instance in which the sum
71 of an employer’s individual benefit ratio and variable
72 adjustment factor exceeds the maximum contribution rate, the
73 variable adjustment factor shall be reduced in order that the
74 sum equals the maximum contribution rate. The variable
75 adjustment factor for each of these employers is multiplied by
76 his or her taxable payroll entering into the computation of his
77 or her benefit ratio. The sum of these products shall be divided
78 by the taxable payroll of the employers who entered into the
79 computation of their benefit ratios. The resulting ratio shall
80 be subtracted from the sum of the adjustment factors computed
81 under sub-subparagraphs a.-c. to obtain the final adjustment
82 factor. The variable adjustment factors and the final adjustment
83 factor shall be computed to five decimal places and rounded to
84 the fourth decimal place. This final adjustment factor shall be
85 added to the variable adjustment factor and benefit ratio of
86 each employer to obtain each employer’s contribution rate. An
87 employer’s contribution rate may not, however, be rounded to
88 less than 0.1 percent.
89 a. An adjustment factor for noncharge benefits shall be
90 computed to the fifth decimal place and rounded to the fourth
91 decimal place by dividing the amount of noncharge benefits
92 during the 3-year period described in subparagraph (b)2. by the
93 taxable payroll of employers eligible for a variation from the
94 standard rate who have a benefit ratio for the current year
95 which is less than the maximum contribution rate. For purposes
96 of computing this adjustment factor, the taxable payroll of
97 these employers is the taxable payrolls for the 3 years ending
98 June 30 of the current calendar year as reported to the tax
99 collection service provider by September 30 of the same calendar
100 year. As used in this sub-subparagraph, the term “noncharge
101 benefits” means benefits paid to an individual from the
102 Unemployment Compensation Trust Fund, but which were not charged
103 to the employment record of any employer.
104 b. An adjustment factor for excess payments shall be
105 computed to the fifth decimal place, and rounded to the fourth
106 decimal place by dividing the total excess payments during the
107 3-year period described in subparagraph (b)2. by the taxable
108 payroll of employers eligible for a variation from the standard
109 rate who have a benefit ratio for the current year which is less
110 than the maximum contribution rate. For purposes of computing
111 this adjustment factor, the taxable payroll of these employers
112 is the same figure used to compute the adjustment factor for
113 noncharge benefits under sub-subparagraph a. As used in this
114 sub-subparagraph, the term “excess payments” means the amount of
115 benefits charged to the employment record of an employer during
116 the 3-year period described in subparagraph (b)2., less the
117 product of the maximum contribution rate and the employer’s
118 taxable payroll for the 3 years ending June 30 of the current
119 calendar year as reported to the tax collection service provider
120 by September 30 of the same calendar year. As used in this sub
121 subparagraph, the term “total excess payments” means the sum of
122 the individual employer excess payments for those employers that
123 were eligible to be considered for assignment of a contribution
124 rate different from the standard rate.
125 c. If the balance of the Unemployment Compensation Trust
126 Fund on June 30 of the calendar year immediately preceding the
127 calendar year for which the contribution rate is being computed
128 is less than 4 3.7 percent of the taxable payrolls for the year
129 ending June 30 as reported to the tax collection service
130 provider by September 30 of that calendar year, a positive
131 adjustment factor shall be computed. The positive adjustment
132 factor shall be computed annually to the fifth decimal place and
133 rounded to the fourth decimal place by dividing the sum of the
134 total taxable payrolls for the year ending June 30 of the
135 current calendar year as reported to the tax collection service
136 provider by September 30 of that calendar year into a sum equal
137 to one-third one-fourth of the difference between the balance of
138 the fund as of June 30 of that calendar year and the sum of 5
139 4.7 percent of the total taxable payrolls for that year. The
140 positive adjustment factor remains in effect for subsequent
141 years until the balance of the Unemployment Compensation Trust
142 Fund as of June 30 of the year immediately preceding the
143 effective date of the contribution rate equals or exceeds 4 3.7
144 percent of the taxable payrolls for the year ending June 30 of
145 the current calendar year as reported to the tax collection
146 service provider by September 30 of that calendar year.
147 Beginning January 1, 2015, and for each year thereafter, the
148 positive adjustment authorized by this section shall be computed
149 by dividing the sum of the total taxable payrolls for the year
150 ending June 30 of the current calendar year as reported to the
151 tax collection service provider by September 30 of that calendar
152 year into a sum equal to one-fourth of the difference between
153 the balance of the fund as of June 30 of that calendar year and
154 the sum of 5 percent of the total taxable payrolls for that
155 year. The positive adjustment factor remains in effect for
156 subsequent years until the balance of the Unemployment
157 Compensation Trust Fund as of June 30 of the year immediately
158 preceding the effective date of the contribution rate equals or
159 exceeds 4 percent of the taxable payrolls for the year ending
160 June 30 of the current calendar year as reported to the tax
161 collection service provider by September 30 of that calendar
162 year.
163 d. If beginning January 1, 2015, and each year thereafter,
164 the balance of the Unemployment Compensation Trust Fund as of
165 June 30 of the year immediately preceding the calendar year for
166 which the contribution rate is being computed exceeds 5 4.7
167 percent of the taxable payrolls for the year ending June 30 of
168 the current calendar year as reported to the tax collection
169 service provider by September 30 of that calendar year, a
170 negative adjustment factor shall be computed. The negative
171 adjustment factor shall be computed annually beginning on
172 January 1, 2015, and each year thereafter, to the fifth decimal
173 place and rounded to the fourth decimal place by dividing the
174 sum of the total taxable payrolls for the year ending June 30 of
175 the current calendar year as reported to the tax collection
176 service provider by September 30 of the calendar year into a sum
177 equal to one-fourth of the difference between the balance of the
178 fund as of June 30 of the current calendar year and 5 4.7
179 percent of the total taxable payrolls of that year. The negative
180 adjustment factor remains in effect for subsequent years until
181 the balance of the Unemployment Compensation Trust Fund as of
182 June 30 of the year immediately preceding the effective date of
183 the contribution rate is less than 5 4.7 percent, but more than
184 4 3.7 percent of the taxable payrolls for the year ending June
185 30 of the current calendar year as reported to the tax
186 collection service provider by September 30 of that calendar
187 year. The negative adjustment authorized by this section is
188 suspended in any calendar year in which repayment of the
189 principal amount of an advance received from the federal
190 Unemployment Compensation Trust Fund under 42 U.S.C. s. 1321 is
191 due to the Federal government.
192 e.d. The maximum contribution rate that may be assigned to
193 an employer is 5.4 percent, except employers participating in an
194 approved short-time compensation plan may be assigned a maximum
195 contribution rate that is 1 percent greater than the maximum
196 contribution rate for other employers in any calendar year in
197 which short-time compensation benefits are charged to the
198 employer’s employment record.
199 f. As used in this subsection, “taxable payroll” shall be
200 determined by excluding any part of the remuneration paid to an
201 individual by an employer for employment during a calendar year
202 in excess of the first $7,000.
203 2. If the transfer of an employer’s employment record to an
204 employing unit under paragraph (f) which, before the transfer,
205 was an employer, the tax collection service provider shall
206 recompute a benefit ratio for the successor employer based on
207 the combined employment records and reassign an appropriate
208 contribution rate to the successor employer effective on the
209 first day of the calendar quarter immediately after the
210 effective date of the transfer.
211 Section 3. Subsection (1), subsection (3), and subsection
212 (5) of section 443.191, Florida Statutes, are amended to read:
213 443.191 Unemployment Compensation Trust Fund; establishment
214 and control.—
215 (1) There is established, as a separate trust fund apart
216 from all other public funds of this state, an Unemployment
217 Compensation Trust Fund, which shall be administered by the
218 Agency for Workforce Innovation exclusively for the purposes of
219 this chapter. The fund shall consist of:
220 (a) All contributions and reimbursements collected under
221 this chapter;
222 (b) Interest earned on any moneys in the fund;
223 (c) Any property or securities acquired through the use of
224 moneys belonging to the fund;
225 (d) All earnings of these properties or securities; and
226 (e) All money credited to this state’s account in the
227 federal Unemployment Compensation Trust Fund under 42 U.S.C. s.
228 1103;. and
229 (f) Advances on the amount in the federal Unemployment
230 Compensation Trust Fund credited to the state under 42 U.S.C. s.
231 1321, as requested by the Governor.
232
233 Except as otherwise provided in s. 443.1313(4), all moneys
234 in the fund shall be mingled and undivided.
235 (3) Moneys may only be requisitioned from the state’s
236 account in the federal Unemployment Compensation Trust Fund
237 solely for the payment of benefits and extended benefits and for
238 payment in accordance with rules prescribed by the Agency for
239 Workforce Innovation, except that money credited to this state’s
240 account under 42 U.S.C. ss. 1103 and 1321 may only be used
241 exclusively as provided in subsection (5). The Agency for
242 Workforce Innovation, through the Chief Financial Officer, shall
243 requisition from the federal Unemployment Compensation Trust
244 Fund amounts, not exceeding the amounts credited to this state’s
245 account in the fund, as necessary for the payment of benefits
246 and extended benefits for a reasonable future period. Upon
247 receipt of these amounts, the Chief Financial Officer shall
248 deposit the moneys in the benefit account in the State Treasury
249 and warrants for the payment of benefits and extended benefits
250 shall be drawn upon the order of the Agency for Workforce
251 Innovation against the account. All warrants for benefits and
252 extended benefits are payable directly to the ultimate
253 beneficiary. Expenditures of these moneys in the benefit account
254 and refunds from the clearing account are not subject to any law
255 requiring specific appropriations or other formal release by
256 state officers of money in their custody. All warrants issued
257 for the payment of benefits and refunds must bear the signature
258 of the Chief Financial Officer. Any balance of moneys
259 requisitioned from this state’s account in the federal
260 Unemployment Compensation Trust Fund which remains unclaimed or
261 unpaid in the benefit account after the period for which the
262 moneys were requisitioned shall be deducted from estimates for,
263 and may be used for the payment of, benefits and extended
264 benefits during succeeding periods, or, in the discretion of the
265 Agency for Workforce Innovation, shall be redeposited with the
266 Secretary of the Treasury of the United States, to the credit of
267 this state’s account in the federal Unemployment Compensation
268 Trust Fund, as provided in subsection (2).
269 (5) MONEY CREDITED UNDER 42 U.S.C. SS. 1103 and 1321.—
270 (a) Money credited to this state’s account in the federal
271 Unemployment Compensation Trust Fund by the Secretary of the
272 Treasury of the United States under 42 U.S.C. ss. 1103 and 1321
273 may not be requisitioned from this state’s account or used
274 except for the payment of benefits and for the payment of
275 expenses incurred for the administration of this chapter. These
276 moneys may be requisitioned under subsection (3) for the payment
277 of benefits. These moneys may also be requisitioned and used for
278 the payment of expenses incurred for the administration of this
279 chapter, but only under a specific appropriation by the
280 Legislature and only if the expenses are incurred and the money
281 is requisitioned after the enactment of an appropriations law
282 that:
283 1. Specifies the purposes for which the money is
284 appropriated and the amounts appropriated;
285 2. Limits the period within which the money may be
286 obligated to a period ending not more than 2 years after the
287 date of the enactment of the appropriations law; and
288 3. Limits the amount that may be obligated during any 12
289 month period beginning on July 1 and ending on the next June 30
290 to an amount that does not exceed the amount by which the
291 aggregate of the amounts credited to the state’s account under
292 42 U.S.C. s. 1103 during the same 12-month period and the 34
293 preceding 12-month periods exceeds the aggregate of the amounts
294 obligated for administration and paid out for benefits and
295 charged against the amounts credited to the state’s account
296 during those 35 12-month periods.
297 (b) Amounts credited to this state’s account in the federal
298 Unemployment Compensation Trust Fund under 42 U.S.C. s. 1103
299 which are obligated for administration or paid out for benefits
300 shall be charged against equivalent amounts that were first
301 credited and that are not already charged, except that an amount
302 obligated for administration during a 12-month period specified
303 in this section may not be charged against any amount credited
304 during that 12-month period earlier than the 34th 12-month
305 period preceding that period. Any amount credited to the state’s
306 account under 42 U.S.C. s. 1103 which is appropriated for
307 expenses of administration, regardless of whether this amount is
308 withdrawn from the Unemployment Compensation Trust Fund, shall
309 be excluded from the Unemployment Compensation Trust Fund
310 balance for the purposes of s. 443.131(3).
311 (c) Money appropriated as provided in this section for the
312 payment of expenses of administration may only be requisitioned
313 as needed for the payment of obligations incurred under the
314 appropriation and, upon requisition, must be deposited in the
315 Employment Security Administration Trust Fund from which the
316 payments are made. Money deposited, until expended, remains a
317 part of the Unemployment Compensation Trust Fund and, if not
318 expended, the money must be returned promptly to the state’s
319 account in the federal Unemployment Compensation Trust Fund.
320 Section 4. This act shall take effect upon becoming law.
321