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What is reemployment tax?

On Behalf of | Mar 2, 2024 | Tax Law

Reemployment tax in Florida is another name for the state’s unemployment tax. It helps fund benefits for workers who have lost their jobs.

Employers pay this tax based on the wages they pay to their employees. Understanding reemployment tax is important for employers, as it can affect payroll expenses.

Taxable wage base

One key aspect of reemployment tax in Florida is the taxable wage base. This is the maximum amount of an employee’s wages that are subject to the tax. For 2024, the taxable wage base in Florida was $7,000 per employee. Taxation does not apply to any wages earned above this amount.

Tax rate

The reemployment tax rate varies depending on several factors, including the state’s unemployment rate and an employer’s layoff history. These rates range from 0.1% to 6.4%, with most employers falling somewhere in the middle of this range. New employers in 2024 paid 2.7%.


Employers must accurately calculate and pay reemployment tax. It is illegal to withhold it from their employees’ wages. Failure to pay the taxes or illegally withholding them from employees’ paychecks may result in penalties and interest charges. Employers should check if they must pay the tax and also be aware of any changes to the reemployment tax rates, as they can change annually based on economic conditions.

Reemployment tax in Florida is an important aspect of ensuring protection to workers who become unemployed. Employers should understand how this tax works to ensure compliance with tax laws. Staying informed about reemployment tax rates and regulations can help employers navigate the tax system effectively.