Texas PEO Bill Becomes Law, Florida Businesses To Pay More Unemployment Tax
Two states are making substantial changes to their employment law codes. Amendments to the Texas PEO licensing statutes (HB 2249) were signed into in early June, providing more security for the thousands of Texas small businesses who outsource with employee leasing/PEO services.
Passage of the bill strengthens working capital requirements and requires PEOs to provide audited financial statements, which further protects small businesses engaged in a PEO arrangement.” Provisions of the new law become effective on September 1, 2009. PEOs have until the end of 2011 to comply with enhanced financial statement requirements.
The Florida Unemployment Compensation Trust Fund has been paying out more funds than it has been taking in, due to increased unemployment in Florida. As a result, effective January 1, 2010, employers must pay tax on the first $8,500 of wages per calendar year, rather than the first $7,000 of wages per calendar year.
The amount of wages subject to unemployment tax will remain at $8,500 through December 31, 2014. The taxable amount will return to the first $7,000 of wages effective January 1, 2015 - so they say?
A PEO can best help your company put in place an employee incentive program. To find the right PEO for your company, please visit www.PEO7.com.
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