What Happens If a Former Employee of Your Small Business in Florida Files for Unemployment?

The state unemployment tax rate you pay as an employer in Florida is affected by the stability of your employment record. A more stable employment record results in a reduced tax rate after a qualifying period.

The unemployment tax rate in Florida varies from a maximum of 5.4% to a minimum of 0.10% on the first $7,000 in taxable wages paid to each employee in a calendar year. The beginning rate is 2.7% until you have been reporting for ten or eleven quarters. The Florida Unemployment Compensation Law provides for experience rating. This means that the tax rate you pay as an employer varies based on your employment records compared to all other employers' records. A business that has higher unemployment benefit costs pays a higher rate.

Also, during periods of abnormally high unemployment, all employers may pay a higher rate. And when unemployment is generally low, all employers may pay a lower rate.

When a former employee files a claim for unemployment compensation, the Agency for Workforce Innovation determines the eligibility of the claim and may request information from you, the employer, in order to authorize or deny the claim. It is your responsibility to provide timely, complete and accurate information.

A claim for unemployment compensation may be denied based on the reasons for leaving the job. Reasons that would disqualify the claim include voluntarily quitting without reasonable cause attributable to the employer and being suspended or discharged for misconduct connected with work, including drug use as evidenced by a positive, confirmed drug test.

When a former employee files a claim for unemployment it is important for you as the employer to establish in detail the reasons for the person's separation. This should include exact dates, times and places of incidents; names of witnesses; and references to any pertinent documents. If you do not provide that information, the determination is made based on the claimant's statement or any other information the Agency for Workforce Innovation has available.

Another consideration for unemployment compensation purposes in your small business is when you have workers who you might consider to be independent contractors. For unemployment compensation purposes in Florida, an employee is defined under the common law rules as a person who is subject to the will and control of the employer in terms of what shall be done and how it shall be done. According to the Florida Agency for Workforce Innovation, if you have a contract with someone for labor only, it will normally be considered an employment contract. How you treat the worker, and not the contract, is what determines the employment status. So someone you consider an independent contractor could potentially file a claim for unemployment after having worked for you.

According to the State of Florida Agency for Workforce Innovation, if you receive Form UCB-412, Notice of Unemployment Compensation Claim Filed by a former employee, you must respond within 20 days. If you do not respond within that time period, you will not be eligible for any relief from benefit charges if you find that the claim is not warranted. You can respond to UCB-412 online.

If a former employee's claim is denied, he or she can appeal. In that case a hearing is scheduled before an appeals referee. This may be done over the telephone and you as the former employer will participate to provide or clarify information regarding the person's separation from work.

Sources:
Respond to UCB-412 - State of Florida Agency for Workforce Innovation
Unemployment Compensation Employer Handbook '" Florida Department of Revenue
Unemployment Compensation '" Employers '" State of Florida Agency for Workforce Innovation