Unemployment Insurance Tax (FUTA/SUTA): Georgia

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• Georgia uses an AC Test to determine whether a worker is an employee for state unemployment insurance (SUI) tax purposes. See Determining Unemployment Tax Coverage.
• Georgia law defines wages for SUI tax purposes as all compensation for personal services, including salaries, commissions and bonuses and the cash value of all compensation paid in any medium other than cash. The annual total SUI tax rate is based on a range of rates, plus an administrative assessment. See SUI Taxable Wages; Contribution Rate.
• State law permits employers to make voluntary contributions to lower their SUI tax rates. In addition, a joint account may be established by two or more qualified employers that are in the same or related kinds of business, or that have a common financial interest, so that all firms in the joint account will have the same tax rate. See Voluntary Contributions;Joint or Combined Accounts.
• An employer that is required to make unemployment insurance contributions must file quarterly reports. See Quarterly Reporting Requirements.
• An employer's SUI account will not be relieved of benefit charges for overpayments that result from the employer's failure to timely or adequately respond to a notice or request for information from the state labor department. See Benefit Overpayments.
• Employers that operate more than one establishment in Georgia may be requested to submit Multiple Worksite Reports. See Multiple Worksite Reporting.
• All employers in Georgia must maintain SUI records for each employee for seven years and keep them available for inspection by the state Department of Labor. See Recordkeeping Requirements.