RTS-1C
                              Information for Nonprofit Organizations                                          R. 10/17
                                                                                                                    TC
                                                                                              Rule 73B-10.037
                                                                                              Florida Administrative Code
                                                                                              Effective Date 10/17

This bulletin is to provide nonprofit employers with facts  For employers electing the tax rate method of payment, 
regarding the Florida reemployment assistance program       a tax rate will be computed at the end of the ten quarters 
law (formerly unemployment compensation law).               based on a comparison of benefits paid to former 
                                                            employees and taxable payroll reported timely.  Certain 
Most nonprofit organizations exempt under s. 3306(C)(8) 
                                                            adjustment factors, primarily based on the economic 
of the Internal Revenue Code regarding the Federal 
                                                            condition of the state, are added to this quotient.
Unemployment Tax Act, who employed four or more 
workers for twenty or more weeks in a calendar year, 
                                                            Payment by Reimbursement Method:
are required to cover their employees under the Florida 
reemployment assistance program law.  The law does not      A nonprofit employer may elect to reimburse the Florida 
cover service performed:                                    Unemployment Compensation Trust Fund for the 
                                                            benefits that are paid to former employees on a dollar for 
1.  By an employee of a church or convention or 
                                                            dollar basis.  You must submit an Election of Nonprofit 
    association of churches or an organization operated 
                                                            Organization Method of Payment Under the Florida 
    primarily for religious purposes and which is 
                                                            Reemployment Tax Law (RT-28, formerly UCT-28).  Your 
    managed, supervised, controlled, or principally 
                                                            election must be for a minimum of two years and for a 
    supported by a church or convention or association 
                                                            new employer, the election must be filed within thirty days 
    of churches.
                                                            after notification of liability by the Department.  You may 
2.  By a duly ordained, commissioned, or licensed           download this form at floridarevenue.com/forms.
    minister of a church in the performance of his or her 
    ministry or by a member of a religious order in the     Sharing of Benefit Costs Under the Reimbursement 
    fulfillment of duties required by the order.            Method:
3.  In a facility that provides a program of rehabilitation The law permits two or more nonprofit employers a 
    for individuals whose earning capacity is impaired      second option of electing the reimbursement method as 
    by age or physical or mental deficiency or injury.      a group, thereby sharing the cost of benefits paid to their 
    Anyone providing work for pay for individuals           former employees.  The two or more employers involved 
    who, because of their impaired physical or mental       must appoint an agent for the group and the election 
    capacity, cannot be readily absorbed in the             must extend over two calendar years.  Benefits charged 
    competitive labor market or individuals receiving       to the group will be paid by each member in proportion 
    such rehabilitation or work for pay are also not        to the wages paid by that member.  Therefore, a member 
    covered by this law.                                    without charges could be required to pay for the charges 
                                                            of another member of the group.
4.  As part of a reemployment work-relief or work-
    training program assisted or financed by any 
                                                            Also, a member could have other members pay a portion 
    federal agency or an agency of a state or political 
                                                            of his charges.  The group’s agent would submit all 
    subdivision, by an individual receiving such work 
                                                            reports and payments for the entire group and act as their 
    relief or work training.  This does not apply to 
                                                            spokesperson.
    reemployment work-relief or work-training 
    programs for which reemployment assistance 
                                                            Changing Methods:
    coverage is required under a federal law, rule, or 
    regulation.                                             A nonprofit employer using the tax rate method may 
                                                            change to the reimbursement method at a later date 
Payment by Tax Rate Method:                                 by submitting Form RT-28 by December 1, prior to the 
                                                            calendar year you wish to begin using the reimbursement 
The beginning tax rate by law is .0270 (2.7 percent).  
                                                            method.  You may download this form from our Internet 
This continues until the employer’s record has been 
                                                            site.
chargeable with benefits for usually eight calendar 
quarters, or they have filed ten quarterly reports with     Nonprofit employers using the reimbursement method 
wages.  The .0270 (2.7 percent) tax will be computed on 
all employees’ taxable wages for the calendar year.

                                                  floridarevenue.com

                                                                                                         RTS-1C
                                                                                                         R. 10/17
                                                                                                         Page 2

may change to the tax rate method by submitting Form        not vary for the first two years regardless of the number 
RT-28 when the reimbursement period has been fulfilled.     of claims filed by your former employees.  The .0270 
You must submit this form by December 1, of the year        (2.7 percent) initial rate will be in force during this period.  
before the change is to be effective.  You may obtain the   At the end of this time, your tax rate may vary up or down 
form from our Internet site.                                according to your record.  The tax rate is based on a 
                                                            comparison of benefits paid to former employees and 
Reimbursement Versus Tax Rate Method:
                                                            taxable payroll reported timely.  The higher the amount of 
In deciding whether you should elect the reimbursement      benefits paid compared to your taxable payroll, the higher 
method or the tax rate method, several factors must be      the tax rate; and conversely, the smaller the amount of 
considered.  Using the tax rate method can allow you        benefits paid, the better the opportunity for a lower tax 
to estimate with reasonable accuracy the cost to your       rate.
budget.  There is a possibility of earning a lower tax rate 
in the future if you have a stable employment record.       Notification of Charges and Payment:
                                                            Employers whose accounts may be charged with 
Under the reimbursement method, you have no such 
                                                            benefit payments will be notified when a claim is filed.  
basis for cost estimating.  Your cost will be based solely 
                                                            Approximately six weeks after the end of a quarter, a 
on benefits paid to your former employees (or under the 
                                                            Notice of Benefits Paid (RT-1, formerly UCT-1) showing 
group method for a percentage of the benefits paid to 
                                                            all charges for that quarter will be sent to the employer.  
former employees of any member of the group).  Also, 
                                                            Only the reimbursable employer is required to forward 
the cost of any sudden or unexpected layoffs must be 
                                                            payment for the charges shown on the statement.  The 
borne immediately as you will be billed quarterly for 
                                                            tax rate method employer’s charges will be reflected in 
reimbursement of benefits paid.  Damage to your place of 
                                                            future tax rates.
business by fire, hurricanes, or other similar unexpected 
disasters could result in your employees becoming           Whether you use the tax rate method or elect to use the 
unemployed and eligible for reemployment assistance         reimbursement method, no part of the payment(s) made 
benefits.                                                   for reemployment assistance tax is to be deducted from 
                                                            wages paid to your employees.
By paying the tax, you are assured that your tax rate will 
                                                            For more detailed information, see Section 443, Florida 
                                                            Statute, and Chapter 73B-10 Florida Administrative 
                                                            Code.

                                                      Contact Us

Information, forms, and tutorials are available on our Internet site:
          floridarevenue.com

To speak with a Department representative, call Taxpayer Services, Monday through Friday, excluding holidays, at 
850-488-6800.  

To find a taxpayer service center near you, go to: floridarevenue.com/taxes/servicecenters

For written replies to tax questions, write to: 
    Taxpayer Services - Mail Stop 3-2000
    Florida Department of Revenue
    5050 W Tennessee St
    Tallahassee FL 32399-0112

Subscribe to our tax publications to receive due date reminders or an e-mail when we post:
          •   Tax Information Publications (TIPs).
          •   Facts on Tax, a quarterly publication.
          •   Proposed rules, notices of rule development workshops, and more.
Go to: floridarevenue.com and select “Subscribe to our tax publications.”