What is Unemployment Insurance? Unemployment insurance provides temporary income to replace a portion of wages lost by able bodied workers who have lost their jobs through no fault of their own. The employer pays for unemployment insurance as a business cost through the State Unemployment Tax Act (SUTA) and the Federal Unemployment Tax Act (FUTA). How do I set up an Account? The Employment Security Law and the Rules of the Georgia Department of Labor require employers to submit true and accurate information to the Department. As an employer doing business in this State, you must complete an Employer Status Report, form DOL-1A. To obtain a DOL-1A contact our Employer Accounts or Adjudication section. Who is liable for unemployment tax? A private business with at least one worker in 20 different calendar weeks during a calendar year or with a payroll of at least $1,500 in any calendar quarter An employer who acquired all or substantially all of a liable business in Georgia A 501(c)(3) non-profit organization with at least four workers in 20 different weeks during a calendar year. One officer or director must be included in this count. An agricultural employer who has 10 or more workers on any day during 20 different weeks in a calendar year, or with $20,000 or more in gross payroll for any calendar quarter An employer with domestic employment in a private home, college club, fraternity or sorority with a payroll of at least $1,000 in any calendar quarter An employee leasing company or temporary help contracting firm that supplies individuals to perform services for clients or customers If approved by the Commissioner, an employer voluntarily choosing coverage not required by law An employer liable for FUTA Who is an employee? A full time or part time worker as defined under statutory law or an officer of a corporation (including sub-chapter S corporations) performing services. Who is not an employee? l A proprietor in the operation of his or her own business l The spouse, parent or child (under the age of 21) of an individual proprietor l Partners, if the business is operated under a partnership l Employees of a church or religious order, or certain church related schools l Insurance agents or solicitors, real estate sales agents and paid solely by commission l Students, if the employment is a recognized part of a program which combines academic instruction with work experience l Individuals performing services for a hospital in a clinical training program for a period of one year by an individual immediately following the completion of a four year course in a medical school chartered and approved pursuant to state law l Workers hired for casual labor not in the usual course of business, unless the cash remuneration is $50.00 or more in any calendar quarter l Elected officials in nontenured policy making advisory positions working less than 8 hours per week; members of a legislative or judicial body, members of the state national guard or air national guard except when called to federal duty l Student nurses in the employ of a hospital or nurses training school l Patients performing services in a hospital l Inmates in a state prison or other state correctional institution l Newspaper carriers under 18 years old l An independent contractor who meets all three of the following conditions: 1. The worker has been and will continue to be free from control or direction over the performance of services, both under contract of service and in fact; and, 2. Service performed is outside the usual course of business for which the service is performed, or such service is performed outside of all the places of business of the enterprise for which such service is performed; and, 3. The worker is customarily engaged in an independently established trade, occupation, profession or business Other employment may be exempt under the law and if you have questions, contact our Adjudication Section. Once determined liable, employers must submit quarterly tax and wage reports and pay taxes associated with each report. Quarterly reports are divided into two parts. Part I is for wage detail and Part II is for tax information and changes occurring in your business. This form is commonly referred to by its number which is a DOL-4, Employer's Quarterly Tax and Wage Report. What are wages? Wages include all remuneration for personal services, including commissions and bonuses, and the cash value of all remuneration paid in any medium other than cash. The reasonable cash value of remuneration in any medium other than cash shall be estimated and determined by the Commissioner as referenced in the Rules of the Georgia Department of Labor. (Agricultural employers should report only cash wages paid the employees and not food and lodging.) Wages are to be reported each quarter on Part I of the Employer's Quarterly Tax and Wage Report, form DOL-4. Tax Rate and Taxable Wage Base Liable employers pay tax on the first $8,500 earnings for each employee each year. Each year all active employers are mailed a Tax Rate Notice, form DOL-626, showing the tax rate for the following year. Newly liable employers are assigned a beginning rate of 2.70%. Tax rate calculations consider the history of unemployment insurance benefits paid to former workers, growth of an employer's payroll and the overall unemployment conditions for the state. If you fail to receive a Rate Notice or have questions about your rate, contact our Rate Unit. Reporting Taxes and Wages An Employer's Quarterly Tax and Wage Report, form DOL-4 Parts I and II for each report period, is mailed to all active liable employers. If you do not receive a form, contact the Employer Accounts Section or your nearest Field Service Office prior to the quarterly filing deadline. Failure to receive the report does not relieve any employer of the responsibility of filing a report. Parts I and II of the Employer's Quarterly Tax and Wage Report with payment of tax due, must be submitted by the last day of the month following the end of each report period (quarter) as indicated. The postmark date determines whether reports and payments are "timely filed". A penalty is imposed for late filing of the report and interest is charged for unpaid taxes. Penalty is assessed at the greater of .05% of total wages for the tax period or $20 each month reports are delinquent. Interest is charged on unpaid tax at 1% per month from the due date until payment is received. Quarter First Second Third Fourth Report Covers Jan 1-March 31 April 1-June 30 July 1-Sept 30 Oct 1-Dec 31 Due Date April 30 July 31 October 31 January 31 Common problems with DOL-4 forms i Difficulty reading the report. Writing must be legible by being typed or printed in black ink. Computer printouts are copies rather than originals. i Payroll listing on Part I of the form not following the format indicated by the form. Pages attached to the report not being in the same column sequence as shown on the DOL-4 form. i Failure to use standard 8" x 11" paper. i Social security number incorrect, incomplete or missing. i Miscalculation of taxes. i Using only contribution rate instead of total tax rate. i Failure to provide correct Federal ID number. This information is intended to help you meet your responsibilities under the law. It does not have the effect of law or regulations. It does not cover all applications of the law or answer all questions. If you have questions, always feel free to contact this Department. Following is a list of telephone numbers for your use in contacting the appropriate unit or section. When calling, please have your account number (if one has been assigned) and pertinent documents available for reference. Subject Section Telephone # New accounts Tax rates Report forms or corrections Delinquent tax reports Labor Market Information Magnetic media reporting Adjudication Rate Unit Employer Accounts Employer Accounts Labor Information Svc Magnetic Media Unit 404-656-5590 404-656-3129 404-656-3145 404-656-3122 404-656-3177 404-656-6215 If you are interested in reporting by tape or diskette, contact the Magnetic Media Unit to request a copy of a user's guide and to ask questions about the requirements for reporting by tape or diskette. The Georgia Department of Labor offers many services including providing quality job applicants to employers, assistance completing wage reports, unemployment insurance benefits and labor market information. Contact the nearest Field Service Office with your request for assistance. DOL-4E (R-9/97) GEORGIA DEPARTMENT OF LABOR Tax Report and Liability INFORMATION ABOUT UNEMPLOYMENT INSURANCE FOR EMPLOYERS Michael L. Thurmond, Commissioner