A primary tax that affects business owners is the state unemployment tax assessment (SUTA).
In Florida, a new business is assigned a rate of 2.7%. This rate is charged on the first $7000 of each employee’s annual payroll.
After 10 quarters the business SUTA rate is subject to review, and may increase or decline, based on unemployment claim history.
Many business owners would rather not worry about this tax and instead leave this employer headache to a PEO, who will become the employer of record in a co-employment situation.
In that case, by using a PEO to handle your HR issues, these headaches literally become “Somebody Else’s Problem” – SEP!