73B-10.036. Reemployment Tax for Indian Tribes

(1) Each liable Tribe or tribal unit that elects to make reimbursements in lieu of contributions must submit a completed Form RT-28T Indian Tribe Election of Payment Method Under the Florida Reemployment Tax Law, in accordance with Sections 443.1312 and 443.1315, F.S. The Tribe or tribal unit must also submit a surety bond on Form RT-40, Indian Tribe Reemployment Tax Surety Bond. The surety bond must be issued by a bonding company or insurance company authorized by the Department of Insurance to do business in this state. If the bond is signed by an out-of-state agent it must be countersigned by a Florida resident agent. The surety bond must be submitted on Form RT-40 within 90 days of the effective date of an Indian tribe or tribal unit’s election to make reimbursements in lieu of contributions. The bond must be effective as of January 1 of that calendar year. DOR will not grant final approval of the election application until the bond is timely received and approved. The bond is to be conditioned upon the Indian tribe or tribal unit’s timely compliance with the payment provisions of Section 443.1315, F.S. Forms RT-28T and RT-40 are incorporated by reference in Rule 73B-10.037, F.A.C.

(2) The bond will be duly executed by the principal and the surety. The amount of the bond will be calculated by determining the average amount of benefits charged to the applicant per quarter during the previous calendar year and multiplying that average by two. If there is insufficient employer history to determine the average, the amount of the bond will be thirty percent of the number of the applicant’s employees, multiplied by three thousand dollars. DOR may review the bond annually to determine if there is a need to adjust the face amount. If DOR determines that the bond amount needs to be increased it will advise the Indian tribe or tribal unit which will have 90 days from the date of notification to increase the amount of the bond. DOR may seek recovery from the surety on the bond at any time subsequent to the failure of the Indian tribe or tribal unit to pay any bill within 30 days of the mailing date of the bill pursuant to Section 443.1313, F.S.

(3) The bond will be effective until it is canceled. The surety company must give DOR at least 90 days written notice if it intends to cancel the surety bond. The cancellation will not be effective until 90 days after DOR receives written notice of the cancellation. Any cancellation of the bond will not affect any liability incurred or accrued prior to the effective date of the cancellation. Failure of the Indian tribe or tribal unit to have in effect a surety bond in the amount determined necessary by DOR will cause the Indian tribe or tribal unit to lose the option to make reimbursements in lieu of contributions effective the following calendar year.

Rulemaking Authority 443.1315(7), 443.1317 FS. Law Implemented 443.1315 FS. History–New 7-29-03, Amended 7-18-06, Formerly 60BB-2.036, Amended 6-2-14.