We all can agree 2020 was a wild year when many jobs were lost, businesses closed and reemployment tax benefits collected. Thankfully for those who did lose their jobs or businesses, this fall back was available to help support their misfortune. After all, nobody had an idea Covid was coming and nobody had answers at first. Hindsight is always 20/20, but who wants 2020 ever again?!? Not me!
From an employer’s standpoint, unemployment insurance or as Florida cleverly calls it, reemployment tax, is a very touchy subject. It seems as if this will become even more of a sore spot, but sore spots are always better noticed early than being surprises. The sore spot? Reemployment tax rates are about to spike.
So far, we have seen reemployment tax increase for businesses in the range up to 200% for some of our clients. The reemployment tax system of Florida and the entire nation has been, is being, and will continue to be strained to its breaking point. Additionally, we have a market which is also being strained. Business owners along with seeing these expenses go up will also be seeing increases in minimum wages in the next few years. In Florida this was a change approved by most of the constituency, both Republicans and Democrats.
The Florida Chamber of Commerce says it’s working to push legislature to protect business owners with certain tax breaks, grants and liability protection to offset the increases. In the end, all of us business owners understand in these tight situations the upmost priority is to watch all of our costs. If business management that includes a hard look at your expenses wasn’t important to your business before, now is the time to make it your #1 priority. Here are a few ways you can maximize resources watch your costs and contain other some expenses to offset that reemployment tax increase.
1 – Management Software
Most of us already use software whether it’s QuickBooks, Restaurant Management Software or Project Cost Tracking Software. Chances are highly likely you are already paying for these and not using them to their full potential. To find out more, all you have to do is go into the support site of your software, their YouTube channel, or even better, CALL SUPPORT. A lot of these tools are subscription based, use all their resources to your advantage and squeeze as much juice out of that lemon as possible!
2 – Price Check your Services and Subscriptions
We subscribe to many services, from insurance to music services. While price competition may have gotten tougher for us, it also makes for opportunities. Even if you are happy with a service price check it. You might find a competitor has much better pricing for equal service or equal pricing for more complete service. Let’s use these times to make ourselves leaner and meaner!
3 – Digital Marketing
Digital Marketing, sounds like an added expense not a cost saving measure? We disagree, take a hard look at your marketing plans. By all measures online marketing in 2020 increased their effectiveness. People are on their phones, tablets, and streaming devices. Many are cutting the cord from the cable providers to do the same thing we are talking about–cutting costs. With digital marketing you cut marketing cost and actively direct your efforts to reach those who are currently looking for your type of business. The result? You get new business at a lower cost and a more fluid pace. Plus, your results are measurable and allow you to focus on exactly what works to drive business.
This reemployment tax surcharge is coming, we smell it, we know it. At NaviPay we are helping our new clients protect themselves by offering the first six months of payroll at 50%. Let us help you! Simply complete our short form. The information that you provide will enable us to give you a no cost review of your current payroll situation. Sometimes we save people money, other times we save them headaches, but best of all we help everyone set payroll on cruise control!