Employer handbook

Employer Handbook

Mark Butler Commissioner

DISCLAIMER
The Employer Handbook is provided by the Georgia Department of Labor (GDOL) as a service to employers. As GDOL cannot provide employers with legal advice the handbook is not intended and may not be relied upon as legal authority. It does not create any rights substantive or procedural enforceable by law or by any party in any matter whether civil or criminal. It does not bind or place any limitations on the lawful prerogatives of the GDOL or any other unit of government and has no regulatory e ect confers no remedies and does not have the force of law or of a ruling of any administrative agency court or governmental subdivision.
This handbook provides a simple explanation of the employment employer tax claimant bene t and appeals provisions of the law and does not take precedence over the regulations which govern the UI program or other programs. The information contained herein is not intended as legal advice and is not a substitute for individual consultation with a labor and employment law attorney. Any federal and state laws and rules discussed in this handbook are subject to legislative revision interpretation of amendments and judicial revisions.
GDOL rules and procedures may signi cantly a ect employer or employee rights and obligations. Employers are strongly encouraged to make appropriate inquiries to the United States Department of Labor (USDOL) and the Equal Employment Opportunity Commission (EEOC) or GDOL regarding various employment laws. Employers should also seek legal counsel regarding the application of laws and speci c policies and practices and with speci c legal questions or concerns.
The forms provided in this handbook are furnished as illustrations only. They are not o cial forms. O cial forms are located under Forms and Publications on the GDOL web site at www.dol.state.ga.us.

TABLE OF CONTENTS

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PART 1 Employing workers
EMPLOYMENT LAWS AND RULES...............................................3 Discrimination ................................................................................... 4
Equal Employment Opportunity.........................................4 A rmative Action ....................................................................5 Wage and Hour Requirements ...................................................6 FLSA Coverage...........................................................................6 Minimum Wage.........................................................................7 Hours of Work............................................................................. 7 Pay Agreements ........................................................................8 Payment Frequency.................................................................8 Payment Methods ....................................................................8 Allowable Deductions.............................................................9 Garnishment of Wages .........................................................10 Commissions ............................................................................10 Bonuses ......................................................................................10 Vacation Pay .............................................................................10 Recordkeeping ........................................................................11 White Collar Exemptions ............................................................12 Overview....................................................................................12 Salary Basis Test.......................................................................12 Duties Test .................................................................................13 Executive Exemption.............................................................13 Administrative Exemption...................................................13 Professional Exemption........................................................14 Computer Employee Exemption.......................................14 Outside Salespeople..............................................................15 Highly Compensated Employees......................................15 Interns and Trainees......................................................................16 Paid vs. Unpaid ........................................................................16 Work Authorization.......................................................................17 Immigration ..............................................................................17 Foreign Workers ......................................................................17 New Hire Reporting ...............................................................18 Child Labor........................................................................................19 General Requirements ..........................................................19 Minimum Age ..........................................................................19 Hours of Work...........................................................................19 Work Permits ............................................................................20 Hazardous Occupations .......................................................20 Prohibited Occupations .......................................................21 Child Labor Reviews ..............................................................21 Violations ...................................................................................21

Time O ..............................................................................................22 Judicial Proceedings ..............................................................22 Military Leave...........................................................................22 Voting..........................................................................................22 Breastfeeding ...........................................................................23 Family Medical Leave Act.....................................................23
Workplace Safety and Health ...................................................24 Workplace Safety Standards...............................................24 COBRA (Health Insurance)..................................................24 Workers Compensation .......................................................25 Health Insurance.....................................................................25
Other Employer Obligations .....................................................26 Unemployment Insurance ..................................................26 Workplace Posters ..................................................................26 Unions .........................................................................................27 Social Networking ..................................................................28
Employment Law Resources .....................................................29
Hiring and Employment ........................................................31 Recruitment and Selection ........................................................32
Utilizing Labor Market Information .................................32 Job Descriptions .....................................................................32 Recruiting Candidates...........................................................33 Screening Applicants ............................................................33 Selecting Quali ed Candidates .........................................33 Pre-Employment Testing......................................................35 Onboarding New Hires ................................................................36 New Hire Process ....................................................................36 Prudent Onboarding Practices ..........................................37 Employment .....................................................................................38 At-Will Employment...............................................................38 Prudent Employment Practices .........................................38 Terminating Employees........................................................39
Part 2 Unemployment Insurance Tax
DeterminingYourTax Liability .......................................43 Employment .....................................................................................44
Employment De ned............................................................44 Employing Unit De ned.......................................................44 Questions Regarding Employment..................................44

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TABLE OF CONTENTS

Covered Employment ..................................................................45 Understanding UI Coverage ...............................................45 Private Employment ..............................................................45 Public Employment................................................................45 Agricultural Employment ....................................................46 Domestic Service Employment .........................................46 Nonpro t Employment ........................................................46 Temporary Help Contracting Firms..................................46 Employee Leasing Companies...........................................47 Common Paymaster ..............................................................47 Independent Contractors ....................................................48 Multi-State Employment......................................................49 Non-Covered Employment .................................................50
Coverage Period .............................................................................52 Date of Liability .......................................................................52 Termination of Liability.........................................................52
Establishing Your Tax Account......................................53 Establishing a Tax Account.........................................................54
Employer Status Report .......................................................54 Registration of Governmental Organizations ..............57 Voluntary Election of Coverage.........................................60 Maintaining Your Account..........................................................62 GDOL Online Employer Services.......................................62 Employer Passwords..............................................................62 Sale of Business .......................................................................62 Business Closure .....................................................................62 Change of Mailing Address or Physical Business Location .....................................................................................62 Power of Attorney ..................................................................64 SIDES / SIDES E-Response....................................................64
Understanding Georgia s Tax Provisions ................65 Employment Security Law Tax Provisions ...........................66
State Unemployment Tax (SUTA) ......................................66 Federal Unemployment Tax (FUTA)..................................66 FUTA Credits .............................................................................66 Administrative Assessments...............................................66 Payment Methods..........................................................................67 Contributory Payment Method .........................................67 Reimbursable Payment Method .......................................67 Changing Payment Methods..............................................68 Tax Rates ............................................................................................70 Experience Ratings.................................................................70

Rate Computations ................................................................71 Rate Computations for Successors...................................71 Voluntary Contribution ........................................................73 SUTA Dumping ........................................................................73
Reporting Your Wages and Taxes ..................................75 Recordkeeping ................................................................................76
Employment Records ............................................................76 Tax and Wage Reports..................................................................77
Wages De ned.........................................................................77 Quarterly Tax and Wage Reports.......................................78 Filing Your Tax and Wage Reports.....................................79 Employers with Only Domestic Service Employees...83 Multiple Worksite Reports ...................................................83 Adjustments or Corrections to Previously Filed Reports .......................................................................................83 Special Wage Reporting .......................................................85 Sale or Discontinuation of a Business .............................85 Failure to Comply....................................................................85 Tax Payments ...................................................................................86 When to Pay..............................................................................86 How to Pay ................................................................................86
Part3 Unemployment Insurance Benefits
Employer Basics........................................................................89 How Claims A ect Your Experience Rating.........................90
Claims Process Overview .....................................................90 Bene t Charges .......................................................................91 Date of the Initial Claim........................................................91 Amount of Wages Earned ....................................................91 Reason for Separation...........................................................91 Number of Employees ..........................................................91 Employee Separations .................................................................92 Separation Notices .................................................................92 Mass Layo s .....................................................................................95 How the GDOL Can Help......................................................95 Volunteering for a Layo .....................................................95 Mass Separations Notices ....................................................95 Special Assistance Programs.....................................................98 Introduction..............................................................................98 Trade Adjustment Assistance (TAA) .................................98 Disaster Unemployment Assistance (DUA) ...................98

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Claims for Benefits ................................................................99 Claimant Eligibility Requirements.......................................100
Introduction........................................................................... 100 Earned Wages........................................................................100 Reason for Separation........................................................101 Proof of Lawful Presence in the U.S...............................101 Availability to Work and Work Search........................... 102 Types of Claims ............................................................................103 Introduction........................................................................... 103 Regular UI Claims.................................................................103 Interstate Claims ..................................................................103 Partial Claims.........................................................................103 Extended Bene ts ...............................................................103 Claimant Trainee Additional Bene ts (CTAB).............103 The Claims Filing Process.........................................................104 Claims Filing Process Overview ......................................104 Bene ts Eligibility Review.................................................104 Claim Determinations........................................................105 Monetary Determinations................................................105 Non-Monetary Determinations......................................105 Appeals.................................................................................... 105 Partial Claims ................................................................................106 What is a Partial Claim ......................................................106 Partial Claim Guidelines ....................................................106 How to File a Partial Claim................................................107 Partial Claim Payments ......................................................107 Disquali cation for Bene ts...................................................108 Basic Quali cation Issues..................................................108 Discharge or Suspension for Misconduct...................108 Voluntary Quitting .............................................................. 110 Issue Citations for Discharges Suspensions and Quits ................................................................................ 111 Refusal of Suitable Work.................................................... 112 Labor Dispute........................................................................112 Severance Pay/ Wages in Lieu of Notice......................112 Workers Compensation ....................................................112 Claimant-Trainee Quit/Discharge .................................. 113 Educational Workers...........................................................113 Retirement Income .............................................................113 Vacation Pay .......................................................................... 113 Holiday Pay ............................................................................ 114 Bene ts from Other States ...............................................114 Payments Not A ecting Bene t Eligibility .................114

Responding to Claims for Benefits...........................115 Claim Notices ................................................................................116
Notice of Initial Claim Filing.............................................116 Request for Separation Information .............................116 Notice of Potential Charges .............................................116 SIDES and SIDES E-Response .................................................117 What are SIDES and SIDES E-Response ......................117 Bene ts....................................................................................117 Registering for SIDES and SIDES E-Response ............118 SIDES E-Response Account Maintenance..................118 Responding to Notices ............................................................. 120 Preparing Your Response..................................................120 Responding Online (SIDES and SIDES E-Response) 120 Responding by Mail or Fax ...............................................120 Common Employer Mistakes ..........................................121 Consequences for Failing to Respond Timely and Adequately....................................................................122 Protecting Your Experience Rating......................................123 Prudent Claims Practices...................................................123 Mistakes to Avoid AFTER a Claim is Filed ....................123
Appeals ......................................................................................... 125 Appeals Basics..............................................................................126
Appeals Process Overview ...............................................126 Filing an Appeal ................................................................... 126 Appeals Tribunal ..................................................................127 Board of Review ................................................................... 127 Superior Court ......................................................................128 Hearing Guidelines ............................................................. 128 Appeals Decisions ...............................................................128 Preparing for a Hearing............................................................129 Your Rights During the Hearing .....................................129 Evidence.................................................................................. 129 Witnesses ................................................................................ 130 Requesting Subpoenas ..................................................... 130 Responding to Subpoenas...............................................130 Interpreters ............................................................................130 Be Prompt...............................................................................131 Testimony ...............................................................................131 Address Changes .................................................................131 Postponing a Hearing ........................................................131 If You Miss a Hearing...........................................................131

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TABLE OF CONTENTS

Benefit Charges......................................................................133 Notice of Bene t Charges........................................................134
Statement of Bene t Charges .........................................134 Reimbursable Employers Quarterly Bill.......................134 Directing Notices to Multiple Addresses.....................135 Bene t Charge Protection Categories ...............................136 Bene t Charge Protection Categories..........................136
Fraud Detection and Prevention................................137 Claims Safeguards ......................................................................138
Fraud Safeguards.................................................................138 Separation Notice................................................................138 Notice of Claim Filed...........................................................138 Weekly Certi cations..........................................................138 Quarterly Statement of Bene ts.....................................138 Follow-Up Interviews .........................................................138 Cross-matching of Wages .................................................139 Weekly Claims Audits.........................................................139 Work Search Audit Program.............................................139 Employer New Hire Program...........................................140 Employer Audit Program .........................................................141 Federal Requirements........................................................141 Field Tax Audits.....................................................................141 Handling an Audit ...............................................................141 Reporting Fraud .......................................................................... 142 Identifying Fraud ................................................................. 142 How to Report Fraud..........................................................142 How to Report Job Refusals and Failure to Pass Drug Tests...............................................................................143 Penalties for Fraud......................................................................147 Penalties for Employers .....................................................147 Penalties for Claimants ......................................................147

Part 4 GDOL Resources
Other GDOL Programs and Services .........................151 Labor Market Information ................................................152 Economic Development ................................................... 152 Regional Coordinator Program.......................................152 Business Services Recruiters ............................................154 Workforce Solutions ........................................................... 154 Employer Committees .......................................................155 Employment Training Programs..................................... 156 Job Readiness Program .....................................................156 Youth Training Programs...................................................156
Contact Information...........................................................159 Directory ......................................................................................... 160 Career Centers..............................................................................162
Glossary ...................................................................................... 165

Part 1
EMPLOYING WORKERS

employment laws and rules

As a Georgia employer it is important you are informed of and comply with employment laws and rules. This section provides information on the federal and state employment laws rules and regulations employers most commonly encounter. This is not a comprehensive list of laws and does not include local laws governing your speci c jurisdiction.
You are responsible for ensuring your company is in compliance with all federal state and local laws rules and regulations. Contact the appropriate government agencies and/or an employment attorney for additional assistance.

04 EMPLOYMENT LAWS AND RULES

DISCRIMINATION
EQUAL EMPLOYMENT OPPORTUNITY

The U.S. Equal Employment Opportunity Commission (EEOC) enforces federal laws that make it illegal to discriminate against a job applicant or an employee because of the person s race color religion sex (including pregnancy) national origin age (40 or older) disability or genetic information. It is also illegal to discriminate against a person because the person complained about discrimination led a charge of discrimination or participated in an employment discrimination investigation or lawsuit.
Most employers with at least 15 employees are covered by EEOC laws (20 employees in age discrimination cases). Most labor unions and employment agencies are also covered.
Federal and other Georgia laws prohibit discrimination in hiring and employment on the basis of
l Age The Age Discrimination in Employment Act prohibits discrimination against workers who are 40 years of age or older. The law applies to all private employers with 20 or more employees employment agencies and certain labor unions. Georgia law prohibits discrimination in hiring and employment of individuals between the ages of 40 and 70. Any person or corporation convicted of violating this law shall be guilty of a misdemeanor and punished by a ne.
l Disability Employers are prohibited from engaging in discrimination against quali ed individuals with a disability by the Georgia Equal Employment for People with Disabilities Code the federal Rehabilitation Act of 1973 and the federal Americans with Disabilities Act of 1990. A "quali ed individual with a disability" is an individual who possesses the requisite skills experience education and other job-related requirements of the position and who can perform the essential functions of the job with or without reasonable accommodation.
An "individual with a disability" is a person with a physical or mental impairment which substantially limits one or more major life activities has a record of such impairment or is regarded by the employer as having such impairment. The determination of whether a person is "disabled" should be made with reference to measures that might mitigate that individual s impairment including medicine or eye glasses. Typical "major life activities" are caring for oneself performing manual tasks walking hearing speaking breathing learning and working.
Employers with at least 15 employees must make reasonable accommodations for quali ed individuals with a disability who cannot perform their jobs essential functions without such an accommodation. "Reasonable accommodation" might include making existing facilities accessible to the disabled restructuring jobs reassigning work or otherwise modifying schedules or revising employment tests. An employer is not required to create a job that does not already exist. An accommodation is not reasonable if it would cause the employer undue hardship i.e. signi cant di culty or expense.
l Equal Pay The Equal Pay Act and Georgia law forbid employers from paying di erent wages to men and women performing equal jobs.
l Pregnancy The federal Pregnancy Discrimination Act prohibits discrimination because of or on the basis of pregnancy childbirth or related medical conditions. Women a ected by pregnancy childbirth or related medical conditions shall be treated the same for all employment-related purposes including receipt of bene ts as other persons not so a ected but who are similar in their ability or inability to work.

EMPLOYMENT LAWS AND RULES 05

DISCRIMINATION (cont d)

EQUAL EMPLOYMENT OPPORTUNITY (cont d)

l Race Color Religion Sex or National Origin Title VII of the federal Civil Rights Act of 1964 prohibits discrimination (any adverse employment action) by employers of 15 or more employees employment agencies and labor organizations on the basis of race color religion sex or national origin. Section 1981 prohibits discrimination against employees based on their race.
l Retaliation The law prohibits employers from retaliating against their employees for asserting their rights to be free of discrimination.
l Sexual Orientation There is currently no federal or Georgia law prohibiting discrimination against employees based on their sexual orientation.
l Genetic Information The federal Genetic Information Nondiscrimination Act (GINA) protects employees from discrimination in employment and health insurance based on their genetic information.

AFFIRMATIVE ACTION

Since 1965 the U.S. Department of Labor s O ce of Federal Contract Compliance Programs (OFCCP) has been committed to ensuring that Government contractors comply with the equal employment opportunity (EEO) and the a rmative action provisions of their contracts.
OFCCP administers and enforces Executive Order 11246 as amended which prohibits federal contractors and federally-assisted construction contractors and subcontractors who do over $10 000 in government business in one year from discriminating in employment decisions on the basis of race color religion sex or national origin.
The Executive Order also requires government contractors to take a rmative action to ensure equal opportunity is provided in all aspects of their employment.
Each government contractor with 50 or more employees and $50 000 or more in government contracts is required to develop a written a rmative action program (AAP) for each of its establishments.

06 EMPLOYMENT LAWS AND RULES

WAGE AND HOUR REQUIREMENTS

FLSA COVERAGE

The Fair Labor Standards Act (FLSA) establishes minimum wage overtime pay recordkeeping and youth employment standards a ecting employees in the private sector and in federal state and local governments. The U.S. Department of Labor (USDOL) Wage and Hour Division (WHD) administers FLSA.
There are two ways in which an employee can be covered by FLSA "enterprise coverage" and "individual coverage."
Enterprise Coverage Employees who work for certain businesses or organizations ("enterprises") are covered by the FLSA. These enterprises which must have at least two employees are
1. businesses with an annual dollar volume of sales or business of at least $500 000 or
2. hospitals businesses providing medical or nursing care for residents schools and preschools and government agencies

Individual Coverage Even when there is no enterprise coverage employees are protected by the FLSA if their work regularly involves commerce between states ("interstate commerce"). The FLSA covers individual workers who are "engaged in commerce or in the production of goods for commerce."
Examples of employees who are involved in interstate commerce include those who
l produce goods (such as a worker assembling components in a factory or a secretary typing letters in an o ce) that will be sent out of state
l regularly make telephone calls to persons located in other states l handle records of interstate transactions l travel to other states on their jobs and l do janitorial work in buildings where goods are produced for shipment outside the
state.
Also domestic service workers (such as housekeepers full-time babysitters and cooks) are normally covered by the law.

Obtaining More Information See WHD Fact Sheet 14 Coverage Under the Fair Labor Standards Act (FLSA) or visit the WHD website at http //www.wagehour.dol.gov. You may also call the WHD toll-free information and helpline at 1-866-4USWAGE (1.866.487.9243). The helpline is available 8 a.m. to 5 p.m. in your time zone.

The WHD also has three regional o ces in Georgia. The phone numbers for these o ces are

Atlanta District O ce Atlanta North Savannah

404.893.4600 404.593.1889 912.652.4221

EMPLOYMENT LAWS AND RULES 07

WAGE AND HOUR REQUIREMENTS (cont d)

MINIMUM WAGE

Most employers in Georgia are required to follow the federal minimum wage rate of $7.25 per hour. There are some rare and limited exceptions which allow employers to pay the Georgia minimum wage of $5.15 per hour. Because the federal law on minimum wage is more stringent than the Georgia law an employer who is in compliance with federal law also complies with Georgia law. For compliance assistance visit the WHD Compliance Assistance web page at http //www.dol.gov/whd/ sa/index.htm.

HOURS OF WORK

Hours of work include all time during which the employee is at an employer s disposal i.e. "su ered or permitted to work." Hours worked in Georgia follow the FLSA rules and include
l Breaks l Waiting or on-call time l Sleeping time l Preparatory and concluding activities l Time spent in meetings and training l Travel time
See WHD Fact Sheet 22 Hours Worked Under the Fair Labor Standards Act (FLSA) for more information.
Overtime Hours worked ordinarily include all the time during which an employee is required to be on the employer s premises on duty or at a prescribed workplace. There is no limit on the number of hours employees 16 years of age or older may work in any workweek. However covered non-exempt employees must receive overtime pay for hours worked over 40 per workweek (any xed and regularly recurring period of 168 hours--seven consecutive 24hour periods) at a rate not less than one and one-half times the regular rate of pay. The FLSA does not require overtime pay for work on weekends holidays or regular days of rest unless overtime is worked on such days.
Employees engaged in executive administrative or professional capacities and paid on a salary basis not less than $455.00 per week are exempt from this act and do not have to be paid overtime. Certain computer professionals may also be exempt.

08 EMPLOYMENT LAWS AND RULES

WAGE AND HOUR REQUIREMENTS (cont d)

PAY AGREEMENTS

A "Payment Agreement" is an agreement between employer and employees regarding the terms of wages to be paid for work. The agreement may be verbal or written. In the absence of an agreement reasonable wages based upon the standard wage practices in the local job market may apply.
Wages may be paid on an hourly daily weekly monthly piece job book or commission rate or a combination of any of these. Methods and rates of pay may be changed but not in a manner that results in a retroactive pay cut.

PAYMENT FREQUENCY

O.C.G.A. 7-234-7-2 permits payment of salaries to o cials superintendents or other heads or subheads of departments on a monthly or less frequent basis but all other employees must be paid on a semi-monthly or more frequent basis.

PAYMENT METHODS

O.C.G.A 34-7-2 requires employers to make wage payments using one of three methods (1) cash (2) check or (3) "credit transfer" to an employee s account with a bank or nancial institution upon the employee s consent.
In Georgia direct deposit is used as such a "credit transfer." Credit transfers are also commonly known as "electronic funds transfers" and subject to regulation by the Federal Reserve under the Electronic Funds Transfer Act (EFTA).
It should be noted that in 2006 the Federal Reserve amended the EFTA regulations to speci cally include "payroll cards" (in addition to direct deposit) in its regulations of electronic funds transfers. Therefore the Federal Reserve through regulatory (not statutory) authority recognizes payroll cards as an acceptable instrument for the payment of wages.
Wage payments made shall in every case correspond to the full net amount of wages or earnings due the employee for the period for which the payment is made. Consistent with other states with similar statutes the employee must be able to have at least one opportunity to access their wages without a charge or fee.
To comply with O.C.G.A. 34-7-3 a wage payment made by an instrument including checks and payroll cards must be payable in cash on demand and without discount and at some place of business in the United States and the name and address of the business must appear on the card. At the time of the issuance and for a reasonable time thereafter (at least 30 days) the maker or drawer must have su cient funds or credit to allow for full payment.

EMPLOYMENT LAWS AND RULES 09

WAGE AND HOUR REQUIREMENTS (cont d)

ALLOWABLE DEDUCTIONS

Georgia does not have any laws identifying what voluntary deductions may be made from employees paychecks. Georgia law does not speci cally require employees to provide written consent prior to any deduction but such a document is often needed to prove that the deduction was authorized by the worker. It is wise to have employees give written authorization before making deductions.
Below is a list of common mandatory and voluntary deductions
l Payroll taxes and other legally-required deductions l Court-ordered garnishments (e.g. child support) l Meals lodging and other facilities (see note below) l Voluntary wage assignments (for something of bene t to the employee e.g.
medical bene ts) l Loans and advances (e.g. vacation pay advances) l Uniforms and uniform cleaning costs (see note below) l Tip credits l Union dues l Cash losses due to cash shortages breakage damage or loss of the employer s
property l Required tools l Other items necessary for employment l Payroll advances
Federal law prohibits an employer from making deductions to the degree that it causes the employee to receive less than 30 times federal minimum wage for any week of the period for which the deduction was made. This does not apply to a voluntary agreement by the employee to repay a loan advance or some other debt to the employer or to a third party.
The amount of maximum allowable deductions and the ability to charge administrative fees vary depending on the type of garnishment. See O.C.G.A. 18-4-20 for further information.

NOTE Georgia does not have any laws prohibiting an employer from requiring an employee to purchase a uniform tools or other items necessary for employment. See WHD Fact Sheet 16 Deductions From Wages for Uniforms and Other Facilities Under the Fair Labor Standards Act (FLSA) for more information.

10 EMPLOYMENT LAWS AND RULES

WAGE AND HOUR REQUIREMENTS (cont d)

GARNISHMENT OF WAGES

Wage garnishment is the process of requiring an employer to deduct money from an employee s pay as the result of a court order or action by an authorized agency. Deductions are required by a law to satisfy a debt or obligation of some kind. The common types of required deductions are
l Child support l Taxes l Unpaid court nes l Creditor garnishments l Bankruptcy orders l Guaranteed student loans
When you receive an order to withhold an amount from an employee s wages you cannot refuse to "attach" the wages by deducting the required amount. Wage garnishments continue until the garnishment order expires the entire debt is paid or arrangements are made to pay o the debt. Generally only one wage attachment may be in e ect for an employee at a time. However a child support court order and a tax levy may operate simultaneously.
If the deduction is based on a voluntary agreement with the employer solely for the purpose of collecting repayment of loans wage advances paid leave advances or wage overpayments written authorization is recommended.
Georgia law (O.C.G.A. 18-4-7) prohibits employers from terminating an employee on the basis of a single garnishment. In addition provisions in the federal bankruptcy law make it illegal for employers to discriminate against incumbent employees because of bankruptcy
ling or bad debts prior to the ling of bankruptcy.

COMMISSIONS

Commissions must be paid according to the terms of a sales representation agreement (O.C.G.A. 10-1-702). Use a clearly written and detailed agreement so all provisions will be enforceable. Provisions regarding the forfeiture of commissions are enforceable if they are clearly and unambiguously part of the commission agreement.
Georgia law o ers special protections to wholesale products sales representatives. They must be paid all commissions within 30 days after termination of the sales representation agreement. Per Georgia law this right cannot be waived by the agreement.

BONUSES

UI law includes bonuses in the de nition of wages that must be reported. See O.C.G.A 34-849. Wages (for UI) are reported when paid. Bonuses are not required by Georgia or federal minimum wage law so they would be a matter of contract or agreement or if not earned according to a contract or bonus plan an increase in compensation.

VACATION PAY

The FLSA does not require employers to provide vacation time or vacation pay as these bene ts are a matter of agreement between the employer and employee. Employers who o er this and other bene ts are strongly encouraged to have written policies that clearly communicate these bene ts to your employees.

EMPLOYMENT LAWS AND RULES 11

WAGE AND HOUR REQUIREMENTS (cont d)

RECORDKEEPING

The FLSA requires covered employers to keep records on wages hours and other items as speci ed in USDOL recordkeeping regulations. Most of the information is of the kind generally maintained by employers in ordinary business practice and in compliance with other laws and regulations. The records do not have to be kept in any particular form and time clocks need not be used.
With respect to an employee subject to the minimum wage provisions or both the minimum wage and overtime pay provisions the following records must be kept
l Personal information including employee s name home address occupation sex and birth date if under 19 years of age
l Hour and day when workweek begins l Total hours worked each workday and each workweek l Total daily or weekly straight-time earnings l Regular hourly pay rate for any week when overtime is worked l Total overtime pay for the workweek l Deductions from or additions to wages l Total wages paid each pay period l Date of payment and pay period covered
Records required for exempt employees di er from those for nonexempt workers. Special information is required for home workers for employees working under uncommon pay arrangements for employees to whom lodging or other facilities are furnished and for employees receiving remedial education.
See WHD Fact Sheet 21 Recordkeeping Requirements under the Fair Labor Standards Act (FLSA) for more information.

12 EMPLOYMENT LAWS AND RULES

WHITE COLLAR EXEMPTIONS

OVERVIEW

The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. However Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona de executive administrative professional and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees.
To qualify for exemption employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply an employee s speci c job duties and salary must meet all the requirements of the USDOL regulations.
See WHD Fact Sheet 17A Exemption for Executive Administrative Professional Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA) for complete information.

SALARY BASIS TEST

To qualify for exemption employees generally must be paid at not less than $455 per week on a salary basis. These salary requirements do not apply to outside sales employees teachers and employees practicing law or medicine. Exempt computer employees may be paid at least $455 on a salary basis or on an hourly basis at a rate not less than $27.63 an hour.
Being paid on a "salary basis" means an employee regularly receives a predetermined amount of compensation each pay period on a weekly or less frequent basis. The predetermined amount cannot be reduced because of variations in the quality or quantity of the employee s work. Subject to exceptions listed below an exempt employee must receive the full salary for any week in which the employee performs any work regardless of the number of days or hours worked. Exempt employees do not need to be paid for any workweek in which they perform no work. If the employer makes deductions from an employee s predetermined salary i.e. because of the operating requirements of the business that employee is not paid on a "salary basis." If the employee is ready willing and able to work deductions may not be made for time when work is not available.
Deductions from pay are permissible
l when an exempt employee is absent from work for one or more full days for personal reasons other than sickness or disability
l for absences of one or more full days due to sickness or disability if the deduction is made in accordance with a bona de plan policy or practice of providing compensation for salary lost due to illness
l to o set amounts employees receive as jury or witness fees or for military pay for penalties imposed in good faith for infractions of safety rules of major signi cance or
l for unpaid disciplinary suspensions of one or more full days imposed in good faith for infractions of workplace conduct rules.
Also an employer is not required to pay the full salary in the initial or terminal week of employment or for weeks in which an exempt employee takes unpaid leave under the Family and Medical Leave Act (FMLA).

EMPLOYMENT LAWS AND RULES 13

WHITE COLLAR EXEMPTIONS (cont d)

DUTIES TEST

In general exempt salaried employees
l are paid for results not speci c amounts of time. l often have no way of telling how long speci c projects or tasks will last. l are expected to use discretion and independent judgment. l provide leadership for other employees. l make decisions that a ect other employees jobs and the company.

EXECUTIVE EXEMPTION

To qualify for the executive employee exemption all of the following tests must be met
l The employee must be compensated on a salary basis (as de ned in the regulations) at a rate not less than $455 per week
l The employee s primary duty must be managing the enterprise or managing a customarily recognized department or subdivision of the enterprise
l The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent and
l The employee must have the authority to hire or re other employees or the employee s suggestions and recommendations as to the hiring ring advancement promotion or any other change of status of other employees must be given particular weight.

ADMINISTRATIVE EXEMPTION

To qualify for the administrative employee exemption all of the following tests must be met
l The employee must be compensated on a salary or fee basis (as de ned in the regulations) at a rate not less than $455 per week
l The employee s primary duty must be the performance of o ce or non-manual work directly related to the management or general business operations of the employer or the employer s customers and
l The employee s primary duty includes the exercise of discretion and independent judgment with respect to matters of signi cance.

14 EMPLOYMENT LAWS AND RULES

WHITE COLLAR EXEMPTIONS (cont d)

PROFESSIONAL EXEMPTION

To qualify for the learned professional employee exemption all of the following tests must be met
l The employee must be compensated on a salary or fee basis (as de ned in the regulations) at a rate not less than $455 per week
l The employee s primary duty must be the performance of work requiring advanced knowledge de ned as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment
l The advanced knowledge must be in a eld of science or learning and l The advanced knowledge must be customarily acquired by a prolonged course of
specialized intellectual instruction.
To qualify for the creative professional employee exemption all of the following tests must be met
l The employee must be compensated on a salary or fee basis (as de ned in the regulations) at a rate not less than $455 per week
l The employee s primary duty must be the performance of work requiring invention imagination originality or talent in a recognized eld of artistic or creative endeavor.

COMPUTER EMPLOYEE EXEMPTION

To qualify for the computer employee exemption the following tests must be met
l The employee must be compensated either on a salary or fee basis (as de ned in the regulations) at a rate not less than $455 per week or if compensated on an hourly basis at a rate not less than $27.63 an hour
l The employee must be employed as a computer systems analyst computer programmer software engineer or other similarly skilled worker in the computer eld performing the duties described below
l The employee s primary duty must consist of
1. The application of systems analysis techniques and procedures including consulting with users to determine hardware software or system functional speci cations
2. The design development documentation analysis creation testing or modi cation of computer systems or programs including prototypes based on and related to user or system design speci cations
3. The design documentation testing creation or modi cation of computer programs related to machine operating systems or
4. A combination of the aforementioned duties the performance of which requires the same level of skills.

EMPLOYMENT LAWS AND RULES 15

WHITE COLLAR EXEMPTIONS (cont d)

OUTSIDE SALESPEOPLE

To qualify for the outside sales employee exemption all of the following tests must be met
l The employee s primary duty must be making sales (as de ned in the FLSA) or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer and
l The employee must be customarily and regularly engaged away from the employer s place or places of business.

highly compensated employees

Highly compensated employees performing o ce or non-manual work and paid total annual compensation of $100 000 or more (which must include at least $455 per week paid on a salary or fee basis) are exempt from the FLSA if they customarily and regularly perform at least one of the duties of an exempt executive administrative or professional employee identi ed in the standard tests for exemption.

16 EMPLOYMENT LAWS AND RULES

INTERNS AND TRAINEES

PAID VS. UNPAID

The FLSA de nes the term "employ" very broadly as including to "su er or permit to work." Covered and non-exempt individuals who are "su ered or permitted" to work must be compensated under the law for the services they perform for an employer. Internships in the "for-pro t" private sector will most often be viewed as employment unless the test described below relating to trainees is met. Interns in the "for-pro t" private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for any hours worked over forty in a workweek.
The Test For Unpaid Interns There are some circumstances under which individuals who participate in "for-pro t" private sector internships or training programs may do so without compensation. The Supreme Court has held that the term "su er or permit to work" cannot be interpreted so as to make a person whose work serves only his or her own interest an employee of another who provides aid or instruction. This may apply to interns who receive training for their own educational bene t if the training meets certain criteria. The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances of each such program.
The following six criteria must be applied when making this determination
1. The internship even though it includes actual operation of the facilities of the employer is similar to training which would be given in an educational environment
2. The internship experience is for the bene t of the intern 3. The intern does not displace regular employees but works under close supervision
of existing sta 4. The employer that provides the training derives no immediate advantage from the
activities of the intern and on occasion its operations may actually be impeded 5. The intern is not necessarily entitled to a job at the conclusion of the internship and 6. The employer and the intern understand that the intern is not entitled to wages for
the time spent in the internship.
If all of the factors listed above are met an employment relationship does not exist under the FLSA and the Act s minimum wage and overtime provisions do not apply to the intern. This exclusion from the de nition of employment is necessarily quite narrow because the FLSA s de nition of "employ" is very broad.
For more information see WHD Fact Sheet 71 Internship Programs Under The Fair Labor Standards Act.

EMPLOYMENT LAWS AND RULES 17

WORK AUTHORIZATION

IMMIGRATION

The Georgia Security and Immigration Compliance Act of 2006 (GSICA) and the Georgia Illegal Immigration and Reform Enforcement Act of 2011 requires most employers in Georgia to verify employees are legally authorized to work in the United States. Fines are imposed on employers who knowingly hire undocumented workers. The law also includes criminal penalties.
The Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA) authorized electronic veri cation of an employee s eligibility to work in the United States using the federal Employment Eligibility Veri cation system (E-Verify).
Georgia law requires employers with more than ten (10) employees to register and participate in E-Verify as a condition of obtaining or renewing a business license. Some jurisdictions may require E-Verify registration at lower employment levels. Employers may utilize E-Verify themselves or they may have a third party or designated agent to conduct E-Verify on their behalf. The Department of Homeland Security (DHS) maintains a list of authorized designated agents.
New hires must complete an Employment Eligibility Veri cation (Form I-9). The employer uses E-Verify to submit the information taken from Form I-9 to the Social Security Administration and U.S. Citizenship and Immigration Services (USCIS) to determine whether the information matches government records.
For more information visit the USCIS E-Verify website at http //www.uscis.gov/e-verify. It is important you maintain records of all I-9 forms as proof of your compliance with IIRIRA.
Public Employers Section 2 of SB 529 requires public employers their contractors and subcontractors to register with E-Verify and verify the work eligibility of all new hires.
Materials on Georgia requirements regarding E-Verify may be found on the Georgia Department of Audit & Accounts (DOAA) web site at http //www.audits.ga.gov/NALGAD/ IllegalImmigrationReformandEnforcementAct.html.

FOREIGN WORKERS

The IIRIRA also establishes procedures for hiring certain aliens including skilled workers and professionals in occupations with shortages of quali ed U.S. workers on a temporary or permanent basis. The federal guest worker programs are
l H-1B Temporary Labor Certi cation (Specialty Occupations) l H-2A Temporary Labor Certi cation (Seasonal Agriculture) l H-2B Temporary Labor Certi cation (Non-agricultural) l H-1C Nurses in Disadvantaged Areas l D-1 Crewmembers Certi cation l Permanent Labor Certi cation
For more information visit the Guest Worker Program page on the USDOL website at http // www.doleta.gov/business/gw/guestwkr/ or contact the GDOL Alien Certi cation Unit at 404.232.3500.

18 EMPLOYMENT LAWS AND RULES

WORK AUTHORIZATION (cont d)

NEW HIRE REPORTING

Georgia Statute 19-11-9.2 and the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 42 U.S.C. 653A requires all employers to report newly hired and re-hired employees to a state directory within ten (10) days of their hire date.
Employers or labor organizations doing business in the state of Georgia must report the hiring of new employees to the Georgia New Hire Reporting Program at www.ga-newhire.com. Employers are required to report the following employees
l New employees Employers must report all employees who reside or work in the state of Georgia to whom the employer anticipates paying earnings. Employees should be reported even if they work only one day and are terminated prior to the employer ful lling the new hire reporting requirement.
l Re-hires or Re-called employees Employers must report rehires or employees who return to work after being laid o furloughed separated granted a leave without pay or terminated from employment. Employers must also report any employee who remains on the payroll during a break in service or gap in pay and then returns to work. This includes teachers substitutes seasonal workers etc.
l Temporary employees Temporary agencies are responsible for reporting any employee who they hire to report for an assignment. Employees need to be reported only once. They do not need to be re-reported each time they report to a new client. They do need to be reported as a rehire if the worker has a break in service or gap in wages from your company.
To register online for reporting information on new hires visit the Georgia New Hire website at www.ga-newhire.com. For more information contact the Georgia New Hire Reporting Program at 404.525.2985 or 888.541.0521 (toll free).

CHILD LABOR
GENERAL REQUIREMENTS
MINIMUM AGE HOURS OF WORK

EMPLOYMENT LAWS AND RULES 19
Georgia s Child Labor laws (O.C.G.A. 39-2-1 et seq.) protect minors under the age of 18 from dangerous work environments and ensure they have su cient time to devote to school and obtaining an education while employed. These laws also help employers reduce lost production time and workers compensation costs by reducing workplace injuries.
The laws are detailed in Georgia Laws and Rules Regulating Employment of Children which can be viewed on the GDOL web site on the Child Labor page. The laws and rules address
l Age restrictions l Hours of work (during school hours and summer vacation) l Hazardous occupations l Prohibited occupations l Minors in entertainment l Penalties for violations
The federal Fair Labor Standards Act (FLSA) also restricts child labor. When there is a di erence in state federal or local law regarding child labor the law providing the most protection to the minor takes precedence.
Minors working for a parent/guardian who owns the business are exempt from all but the hazardous/prohibited occupation restrictions.
Child Labor personnel are available for presentations to school classes issuing o cers PTAs employer groups etc. For more information regarding child labor contact
Georgia Department of Labor Child Labor 148 Andrew Young International Blvd. N.E. Suite 700 Atlanta GA 30303-1751 Telephone 404.232.3260 Email childlabor gdol.ga.gov
The federal minimum age for employment is 14.
Federal law permits minors 14 and 15 years of age to work the following hours
3 Hours (school day) 8 Hours (non-school day) 18 Hours (school week) 40 Hours (non-school week) None during normal school hours None before 7 a.m. None after 7 p.m. (Evening hours are extended to 9 p.m. June 1 to Labor Day.)

20 EMPLOYMENT LAWS AND RULES

CHILD LABOR (cont d)

WORK PERMITS

Employers must maintain an Employment Certi cate (DOL-4103) also known as a work permit on the work site for all workers under the age of 18. Work permits may be obtained using the online work permit system on the GDOL web site. Below is an overview of the process. For complete instructions use the Site Index on the GDOL web site to locate Child Labor Employment Certi cate Instructions.
1. The minor completes Section A of the work permit data sheet online. 2. When a job o er is made the minor informs the employer that the work permit
data sheet was initiated online. The employer completes Section B of the work permit online. 3. After Sections A and B have been completed the issuing o cer (an authorized school o cial) reviews the work permit data sheet for completeness veri es the minor s date of birth and completes Section C. 4. The issuing o cer gives the Employment Certi cate (DOL-4103) to the minor. 5. The minor gives the Employment Certi cate (DOL-4103) to the employer.
Home Schooled Minors E ective July 1 2013 pursuant to HB 283 the GDOL implemented procedures for students between the ages of 12 and 18 years who participate in a Home Study Program. The Home Study Program requirements may be obtained by using the Site Index on the GDOL s web site to locate Child Labor Home Schooled Form.
Minors in Entertainment Chapter 300-7-1 of the Georgia Laws and Rules Regulating Employment of Children addresses minors performance or participation in any motion picture production company theatrical group or association broadcast (radio and television) or photographic modeling agency whether or not monetary remuneration is provided.
For minors in the entertainment eld Minors in Entertainment Certi cates (DOL-4101) must be issued by the GDOL Child Labor Unit based on applications submitted by the employer. Applications should be submitted no less than ve (5) working days prior to the rst day the minor begins work in Georgia (including rehearsals). An application may be obtained by using the Site Index on the GDOL s web site to locate Child Labor Entertainment Employment.

HAZARDOUS OCCUPATIONS

Federal regulations consider the following occupations hazardous and restricted from minors under the age of 18 with some limited exceptions for 17 year olds as found on the WHD web site at http //www.dol.gov/whd/regs/compliance/childlabor101_text.htm.

l Manufacturing and storing explosives
l Motor vehicle driving and outside helper
l Coal mining logging and sawmilling
l Mining l Power-driven
woodworking machines l Exposure to radioactive
substances

l Power-driven hoisting

l Manufacturing brick

apparatus power-driven

tile and kindred

metal-forming punching

products

and shearing machines l Power-driven circular

l Slaughtering

saws band saws and

l Meatpacking

guillotine shears

processing or rendering l Wrecking demolition

l Power-driven bakery

and ship breaking

machines

operations

l Power-driven paper

l Roo ng operations

products machines

l Excavation operations

EMPLOYMENT LAWS AND RULES 21

CHILD LABOR (cont d)

PROHIBITED OCCUPATIONS

Georgia law prohibits minors under the age of 16 from working in any mill factory laundry manufacturing establishment or workshop in any occupation designated by the Commissioner of Labor as dangerous which are as follows

l Machinery l Motor vehicles l Equipment l Food process l Fixtures l Railroads l Unguarded gears

l Vessels or boats l Dangerous gases or
acids l Communication or
public utilities l Freezers l Meat coolers

l Loading and unloading trucks railroad cars conveyors etc.
l Warehouses l Sca olding or
construction l Mines coke breaker
coke oven or quarry

Federal regulations also prohibit minors between the ages of 14-15 from working in certain occupations. This list is found on the WHD website at http //www.dol.gov/whd/regs/ compliance/childlabor101_text.htm.

CHILD LABOR REVIEWS

Child Labor reviews are conducted by the GDOL for the detection and prevention of potential violations of child labor laws. The GDOL is authorized to revoke work permits of employers who fail to comply with these laws.

VIOLATIONS

Violating Georgia s child labor laws is a misdemeanor and may result in an injunction preventing you from continuing to employ the minor.

22 EMPLOYMENT LAWS AND RULES

TIME OFF
JUDICIAL PROCEEDINGS
MILITARY LEAVE
VOTING

Under Georgia law (O.C.G.A. 34-1-3) employees must be excused from work to attend judicial proceedings in response to a subpoena summons for jury duty or other court order. This requirement does not apply to employees who have been charged with a crime. Such individuals must comply with your employment rules regarding advance noti cation of attendance at judicial proceedings.
Per O.C.G.A. 34-1-3 an employer may not discharge discipline or otherwise penalize an employee who has been summoned for jury duty. Additionally Georgia law (O.C.G.A. 16-10-93) prohibits anyone from dissuading witnesses from testifying by making threats including threatening the witness employment or the employment of any of the witness relatives or associates.
Per the Georgia Attorney General in an opinion issued in 1989 (No. 89-55) an employee s total compensation cannot be penalized for time away from work to serve on jury duty. However it is not required that the employee receive extra nancial reward for serving on jury duty. Therefore although employers cannot penalize employees employers are authorized to o set employees salaries by the amount of funds the employees receive for jury service so that the combined amounts equal their gross salary or wages.
Consult with your legal counsel for further direction.
Georgia law (O.C.G.A. 38-2-280) requires permanent employees who perform military service or training (not to exceed six months within any four-year period) be allowed to return to the same or a similar position. To qualify employees must
l receive a certi cate of completion of military service l remain able to perform the duties of the position and l apply for reemployment within 90 days after being relieved from service.
Employees who qualify must
l be restored without loss of seniority l be allowed to participate in insurance or other bene ts consistent with the
employer s ordinary rules for leave of absence and l not be discharged from the position without cause for one year after they are
restored.
The federal Uniformed Services Employment and Reeducation Rights Act (USERRA) applies to all employers and has similar more detailed requirements. Since the federal law o ers greater protections you should follow its provisions and regulations. More information about USERRA is available on the United States Department of Labor s (USDOL) website at www.dol.gov/dol/compliance/comp-userra.htm.
Georgia law (O.C.G.A. 21-2-404) requires employers to give their employees up to two hours o to vote in any election for which they are registered and quali ed. This law does not apply if the employee begins work more than two hours after the polls open or leaves work more than two hours before the polls close. You may specify the hours when an employee can be absent.

EMPLOYMENT LAWS AND RULES 23

TIME OFF (cont d)
BREASTFEEDING
FAMILY MEDICAL LEAVE ACT

E ective March 23 2010 the Patient Protection and A ordable Care Act ("A ordable Care Act") amended section 7 of the Fair Labor Standards Act (FLSA) to require employers to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child s birth each time such an employee has need to express milk. Employers are also required to provide a place for employees to express milk other than a bathroom that is shielded from view and free from intrusion from coworkers and the public.
For more information see WHD Fact Sheet 73 "Break Time for Nursing Mothers under the FLSA."
Georgia employers must comply with the federal Family Medical Leave Act (FMLA) which requires employers with 50 or more employees who are employed within a 75 mile radius to provide eligible employees with up to 12 weeks of unpaid job-protected leave each year to care for
l a newborn or newly adopted or foster child l a seriously ill child spouse or parent or l themselves because of their own illness.
Employers designate if an employee s use of paid leave counts as FMLA leave based on information provided by the employee. The employer is responsible for informing the employee of the designation. Under certain circumstances employers may require employees to take unpaid FMLA leave rather than accrued paid leave.
Additional information for employers about the FMLA is found on the WHD website at http //www.dol.gov/whd/fmla/index.htm.

24 EMPLOYMENT LAWS AND RULES

WORKPLACE SAFETY AND HEALTH

WORKPLACE SAFETY STANDARDS

The Occupational Safety and Health Act (OSH Act) was enacted to "assure safe and healthful working conditions for working men and women."The act created the Occupational Safety and Health Administration (OSHA) at the federal level and provided that states could run their own safety and health programs as long as those programs were at least as e ective as the federal program. Enforcement and administration of the OSH Act in states under federal jurisdiction is handled primarily by OSHA. Safety and health standards related to eld sanitation and certain temporary labor camps in the agriculture industry are enforced by the USDOL Employment Standards Administration s Wage and Hour Division (WHD) in states under federal jurisdiction.
The OSHA requires employers to comply with all applicable safety and health regulations and maintain a place of employment that is free from recognized hazards that can cause death or serious physical harm to employees.
Additional information about employer s responsibilities under the Occupational Safety and Health Act is found on the OSHA website at https //www.osha.gov/
Georgia s O.C.G.A. 34-2-10 34-7-20 and 34-7-23 require employers to provide a reasonably safe workplace including safety devices and safeguards. You are to do everything reasonably necessary to protect the life health safety and welfare of your employees. You must warn them of known defects in machinery or the work environment. However employees assume the ordinary risks of employment and must also protect themselves from danger.

COBRA (HEALTH INSURANCE)

The Consolidated Omnibus Budget Reconciliation Act (COBRA) establishes group health plans for many employees who lose their health bene ts. COBRA gives employees and their families who lose their health bene ts the right to continue group health bene ts provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss reduction in the hours worked transition between jobs death divorce and other life events. COBRA speci es how employees and their family members may elect continuation coverage. It also requires employers and health plans to notify employees of their right to COBRA. Quali ed individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year o er employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
Additional information about employers responsibilities under COBRA is found on the USDOL website at http //www.dol.gov/dol/topic/health-plans/cobra.htm.

EMPLOYMENT LAWS AND RULES 25

WORKPLACE SAFETY AND HEALTH (cont d)

WORKERS COMPENSATION

The Georgia Workers Compensation law O.C.G.A. 34-9-1 et. seq.) protects employees who are injured on the job by paying medical expenses and replacing lost wages for any lost time of more than seven days while they recover. The law requires employers who employ three or more employees to provide workers compensation coverage for their employees.
The system works as a no-fault guarantee. The law entitles employees who can show they were hurt while working to a portion of their earnings and paid medical care for their injuries. They do not have to prove their employer was negligent. In exchange for the nofault guarantee the law does not allow employees to sue the employer for negligence.
Under certain circumstances employers may be entitled to reimbursement from the Subsequent Injury Trust Fund for a portion of the workers compensation bene ts paid to injured employees who also had a pre-existing permanent impairment.
The State Board of Workers Compensation (http //sbwc.georgia.gov) administers Georgia s law. The law works in conjunction with other laws such as the Americans with Disabilities Act (ADA).

HEALTH INSURANCE

Under the Patient Protection and A ordable Care Act (ACA) of 2010 employers with at least 50 full-time equivalent workers are required to provide a ordable health insurance to their employees. Penalties will be imposed in 2015 on employers who are required to provide a ordable health care to their employees but fail to do so.
The ACA also requires all employers who employ one or more employees who are engaged in or produce goods for interstate commerce to provide notice to each employee of coverage options including options available through the Health Insurance Marketplace.
Information about employer responsibilities under the ACA is found on the website of the Employee Bene ts Security Administration of the USDOL at http //www.dol.gov/ebsa/ healthreform/index.html

26 EMPLOYMENT LAWS AND RULES

OTHER EMPLOYMENT OBLIGATIONS

UNEMPLOYMENT INSURANCE

Georgia s Employment Security Law governs unemployment insurance (UI) compensation to individuals who lose their jobs through no fault of their own. The intent of the UI program is to provide temporary aid to help these individuals and their families purchase necessities until they are reemployed.
The GDOL administers the UI program. The Rules of Georgia Department of Labor Employment Security Law de nes generally how the GDOL administers the UI program. The rules address
l Reports l Tax Rates and Covered Employment l Unemployment Insurance Bene t Payments l Appeals l Records l Requirements for Employees and Employers l Governmental and Non-Pro t Accounts l Quali cations and Penalties for Unemployment Insurance Bene ts Claims
The Unemployment Insurance Taxes and Unemployment Insurance Bene ts sections of this handbook explain Georgia s UI program more fully.

WORKPLACE POSTERS

The GDOL requires employers to post and maintain printed statements and information pertaining to the rights of employees under the law in places readily accessible to their employees. However employers who are not liable for unemployment taxes under the law or who cease to be liable for unemployment insurance tax are not permitted to display such notices and must remove them if on display.
The following posters are required by the GDOL

Name of Poster
Unemployment Insurance for Employees English Version Spanish Version
Employer Vacation English Version Spanish Version
Equal Pay for Equal Work Act English Version Spanish Version
Public Employee Hazardous Chemical Protection Notice
Workers Compensation Notice
Workers Compensation Bill of Rights

Form Number
DOL-810 DOL-810SP
DOL-154 DOL-154SP
DOL-4107 DOL-4107SP
DOL-4244
WC-P1 WC-BOR

The above list applies to the GDOL only. Employers are responsible for displaying all posters required by other state and federal agencies. Go to the Site Index of the GDOL web site and select Workplace Posters for more information.

EMPLOYMENT LAWS AND RULES 27

OTHER EMPLOYMENT OBLIGATIONS (cont d)

WORKPLACE POSTERS (cont d)

Obtaining GDOL Posters Workplace posters in English and Spanish may be downloaded and printed from the GDOL web site at www.dol.state.ga.us. Use the Site Index to locate Workplace Posters. Employer Poster Kits may be ordered from the GDOL Mail Services department at no charge at
Georgia Department of Labor Mail Services 148 Andrew Young International Blvd. NE Atlanta GA 30303-1751 Telephone 404.232.3395
The kits contain all posters required by the GDOL (in English and Spanish) except the Workers Compensation posters.

Obtaining Other Workplace Posters There are other poster requirements for certain business operations. Other federal agencies also require speci c documents be displayed in the workplace. Use the elaws FirstStep Poster Advisor at http //www.dol.gov/elaws/posters.htm to determine federal poster requirements for compliance with laws administered by the USDOL. Contact the appropriate agencies directly to verify any poster display requirements.
State Board of Workers Compensation http //sbwc.georgia.gov/ 404.656.3870
USDOL Workplace Posters http //www.dol.gov/oasam/programs/osdbu/sbrefa/poster/matrix.htm 866.487.2365
OSHA http //www.osha.gov/pls/publications/publication.athruz pType Types&pID 5

unions

The National Labor Relations Act (NLRA) gives employees the right to organize join unions and engage in collective bargaining. It is unlawful for an employer to interfere with an employee s right to join a union and engage in union activities including discharging or otherwise discriminating against employees because they engage in union activities.
Employers are also required to bargain in good faith with a union. Georgia s "Right to Work" law (O.C.G.A. 34-6-6 and 34-6-7) prohibits compelling anyone to either join or refrain from joining a union as a condition of employment. Anyone violating this law will be guilty of a misdemeanor.
The NLRA is enforced by the National Labor Relations Board (NLRB). For more information visit their web site at http //www.nlrb.gov/.

28 EMPLOYMENT LAWS AND RULES

OTHER EMPLOYMENT OBLIGATIONS (cont d)

social networking

The NLRA also protects the rights of employees to act together to address conditions at work with or without a union. Section 7 of the NLRA gives employees the right to engage in "concerted activities" for mutual aid and protection. It protects employees rights to discuss wages terms of employment and work conditions. This protection extends to certain workrelated conversations conducted on social media such as Facebook and Twitter.

EMPLOYMENT LAWS AND RULES 29
EMPLOYMENT law resources
Child Labor Georgia Department of Labor Child Labor Unit 404.232.3260 childlabor gdol.ga.gov GDOL Website http //www.dol.state.ga.us/em/child_labor.htm Federal Website http //www.dol.gov/whd/childlabor.htm
Discrimination Equal Employment Opportunity Commission (EEOC) General Information http //www.eeoc.gov / Contact Information http //www.eeoc.gov/contact/
Immigration United States Citizenship and Immigration Services (USCIS) http //www.uscis.gov/portal/site/uscis
Labor Relations National Labor Relations Board http //www.nlrb.gov/ 1.866.667.NLRB (1.866.667.6572) Spanish language option available.
Unemployment Insurance Georgia Department of Labor Unemployment Insurance and Regional Operations Division 404.232.3180 www.dol.state.ga.us/ui_rules.htm
Wage and Hour Compliance USDOL Wage and Hour Division http //www.dol.gov/whd/regs/compliance/ca_main.htm
Workers with Disabilities Georgia Vocational Rehabilitation Agency (GVRA) 404.232.1998 or 1.866.489.0001 https //gvra.georgia.gov/
Workplace Health and Safety Occupational Safety and Health Administration (OSHA) http //www.osha.gov/

30 EMPLOYMENT LAWS AND RULES
EMPLOYMENT law resources (cont d)
Workers Compensation State Board of Workers Compensation http //sbwc.georgia.gov 404.656.2048
Workplace Posters Federal Posters http //www.dol.gov/compliance/topics/posters.htm Georgia Posters http //www.dol.state.ga.us/em/required_posters.htm
Agricultural Employers Migrant and Seasonal Agricultural Worker Protection Act (MSPA) http //www.dol.gov/compliance/laws/comp-msawpa.htm http //www.dol.gov/WHD/mspa/index.htm
Occupational Safety and Health Administration (OSHA) Standards for Agriculture http //www.osha.gov/pls/oshaweb/owasrch.search_form p_doc_type STANDAR DS&p_toc_level 1&p_keyvalue 1928
OSHA Housing Regulations (29 CFR 1910.142) http //www.osha.gov/pls/oshaweb/owadisp.show_document p_table STANDAR DS&p_id 9791
Temporary Labor Camps http //www.osha.gov/pls/oshaweb/owadisp.show_document p_table STANDAR DS&p_id 9791

HIRING AND EMPLOYMENT

People are the greatest asset of any company. The success and productivity of your employees directly a ect the pro tability of your business. This section provides suggested practices for e ectively recruiting selecting hiring and managing employees while complying with legal requirements. The Department advises employers to consult with legal counsel prior to adopting policies and procedures related to the hiring of employees.

32 hiring and employment

RECRUITMENT AND SELECTION

UTILIZING LABOR MARKET INFORMATION

The GDOL provides Labor Market Information a broad array of community regional state and national data of value to businesses to help you determine wages and how to best attract quali ed candidates
l Comparative wage information l Economic pro les of Georgia s regions l Labor supply and demand by industry and occupation l Commuting patterns
Use the Georgia LaborMarket Explorer on the GDOL web site to obtain labor market information or contact your local career center for assistance. GDOL sta routinely provides customized analyses of labor availability for speci c needs.

JOB DESCRIPTIONS

We suggest you begin your hiring process by developing a well-thought out job description that can be used for selection and employment purposes. The job description should clearly de ne
l job duties and responsibilities l job quali cations and pre-requisites l performance requirements and expectations l employee attributes e.g. works well independently or in a team environment
detail-oriented results-oriented conceptual thinker etc.
A good job description de nes both the hard skills and soft skills needed to perform the job in an exceptional manner. The skills can be categorized as "minimum requirements" and "preferred requirements". Minimum requirements are skills and attributes candidates must absolutely posses to perform the job at an acceptable level. Preferred requirements are skills and attributes you would like candidates to have because they can contribute to exceptional performance.
A good job description makes it easier to hold employees accountable and to measure their performance. It also makes it easier to avoid the charges or cost of an improper unemployment claim if the reason for separation is the claimant s refusal or failure to perform job duties. Additionally if an employee who quits was aware of the job requirements prior to accepting the position then it is less likely the employee can give a good work-connected reason for quitting.
If you need assistance creating job descriptions contact your local career center. Our GDOL sta will be happy to work with you.

HIRING AND EMPLOYMENT 33

RECRUITMENT AND SELECTION (cont d)

RECRUITING CANDIDATES

The GDOL connects employers with quali ed candidates by advertising job openings and screening applicants. You may list a job opening with the GDOL by submitting a job order request on the GDOL website or by contacting your local career center. To submit your job order request online use the Site Index on the GDOL web site to locate Job Order Request.
Your job opening will be listed in the GDOL Job Information System (JIS) which displays all job openings on the GDOL web site at www.dol.state.ga.us under Find a Job. Jobs are listed by location type (full or part-time) and category (occupation).
The GDOL s Customized Recruitment (CR) Team works directly with statewide economic developers to identify new Georgia employers who may be eligible for individualized recruitment assistance to streamline candidate search processes and ll positions quickly. The CR Team specializes in organizing recruitment e orts that are speci cally tailored to meet employers unique needs. They are experienced in traditional recruitment e orts e.g. establishing a dedicated recruitment location and/or presence on the GDOL web site as well as innovative methods including social media.
Additionally the GDOL conducts career expos throughout the state for targeted industries skills geographic areas and/or populations as needed to meet recruitment needs. Contact your local career center regarding your recruitment needs.

SCREENING APPLICANTS

The GDOL can assist you in identifying quali ed candidates by searching local state and national applicant databases to identify job seekers who match your job requirements. Additionally GDOL sta provides job placement assistance to job seekers by matching them to current job openings listed with the Department and refers quali ed applicants to employers.
Candidates meeting or exceeding the minimum job requirements are referred to your company. Generally the GDOL only provides your company name and application instructions to quali ed candidates upon referral unless authorized by you or required by law. You may determine the number of referrals you are willing to accept. If you wish the GDOL career centers will accept job applications and screen them on your behalf. A GDOL sta member will work with you to re ne your selection criteria.
The career centers can also provide space for you to conduct interviews. Some career centers contain Business Resource Centers for employers with computers fax machines and valuable written materials. Contact your local career center to learn more about the services available to employers in your area.
For companies new to Georgia the CR Team can partner with economic developers and project managers to screen candidates. The CR Team is experienced in recognizing skills and critiquing rsums so only the best quali ed candidates are introduced to potential employers.

SELECTING QUALIFIED CANDIDATES

When hiring it is recommended that employers select candidates who
l are competent l have good judgment l are a good t for your organization and l are legally authorized to work in the U.S.

34 hiring and employment

RECRUITMENT AND SELECTION (cont d)

SELECTING QUALIFIED CANDIDATES (CONT D)

Competence Evaluate candidates skills based on job-related criteria. Screen and question rsums. Ask skill-related questions that reveal the candidate s level of experience and knowledge. However it is suggested that you do not use language in job descriptions applications and interview questions that may suggest a preference for a particular race age sex or other quality. Also your questions should be limited to information that is needed to evaluate an applicant s quali cations.

Good Fit Seek employees who possess the soft skills needed to perform the job well. Generally there are three soft skills that impact performance values behavior and emotional intelligence.
It is important to match the values of the job with those of the candidate to avoid low productivity and employee turnover. For example a job requiring respect for structure rules and regulations would not be a good t for a person who values free-thinking and creativity.
Values drive behaviors. Behaviors are re ected in the way employees interact with each other and handle con ict. Ask yourself "What behaviors are critical to someone performing this job at an acceptable level " Look for candidates who enjoy those behaviors. For example if you are trying to ll a sales position look for candidates who enjoy meeting new people.
The third soft skill is emotional intelligence. Emotional intelligence is the capacity to be aware of control and express one s emotions and to interact well with others. Emotional intelligence a ects one s ability to work well with others. A person who is emotionally competent often displays self-con dence is self-controlled and strives for excellence and achievement.

Authorized to Work in the U.S. It is okay to ask applicants if they are legally authorized to work in the U.S. However you cannot ask to see work authorization documents until after they are hired. All new hires must complete I-9 forms. Their information must be entered into the E-Verify system within three days of employment to ensure they are authorized to work in the U.S. See Immigration and New Hire Reporting under Work Authorization.

Interview Red Flags Applicants behaviors during interviews can reveal their values judgment and t for your organization. The following behaviors are considered "red ags"
l Arrives late for the interview l Is discourteous to your o ce sta l Wears inappropriate attire l Has poor hygiene l Reveals con dential information about their former employer l Criticizes the former employer and/or co-workers l Expresses anger about prior employment l Knows little about your company

HIRING AND EMPLOYMENT 35

RECRUITMENT AND SELECTION (cont d)

PRE-EMPLOYMENT TESTING

Pre-employment skill tests may be an e ective means of identifying the most quali ed candidates. Pre-employment drug testing helps ensure the safety of your workers.
Skills Testing Pre-employment skills testing can be used to identify and assess a candidate s knowledge and level of expertise in the skills that are critical to performing the job at an acceptable level.
Drug Testing O.C.G.A. 34-9-415 governs conducting testing types of tests random testing procedures for specimen collection and testing laboratory quali cations procedures and reports and con rmation tests. All testing conducted by employers must be in conformity with the standards and procedures established in O.C.G.A. 34-9-415 and all applicable rules adopted by the State Board of Workers Compensation pursuant to the law. However an employer shall not have a legal duty under this article to request an employee or job applicant to undergo testing.
The Georgia State Board of Workers Compensation certi es employers as a drug-free workplace and awards certi ed employers a 7.5 percent reduction of their workers compensation premiums. (Go to http //sbwc.georgia.gov/drug-free-workplace to learn more.) Georgia employers who have a drug-free workplace program are required to do drug testing of applicants who have received conditional o ers of employment. A notice of drug testing should be included in all job announcements or advertisements for any position requiring drug testing. (See O.C.G.A. 34-9-410 et seq.)
Background Checks Employers may conduct background checks on job candidates but background checks should be narrowly tailored to meet the requirements of the job so as not to disproportionately impact certain job candidates. Additional information is available on the website of the EEOC at www.eeoc.gov.
Hiring Process with Pre-Employment Testing Below is a suggested hiring process using pre-employment testing.

Step

Action

1. The GDOL pre-screens candidates and provides application instructions to quali ed candidates.

2. The candidates apply for the job.

3. The recruiter reviews all applicant information and identi es the candidates to complete skills test(s).

4. The selected candidates are invited to take the skills test(s).

5. The recruiter and/or hiring manager reviews the pool of candidates who successfully passed the skills test(s) and select those to advance to the next step in the selection process.

6. The candidates are interviewed.

7. Conditional job o ers are made to selected candidates.

8. Upon acceptance of the job o er background checks are conducted on the selected candidates.

9. Drug testing is conducted for the candidates who passed the background check.

10. Candidates who pass the drug test are given a date to report to work.

36 hiring and employment

onboarding new hires

new hire process

Turnover is expensive. Every year 25 percent of workers experience career transitions1. According to recent data referenced by the Society for Human Resource Management (SHRM) half of all external hires in senior management fail within 18 months2 and half of all hourly workers leave new jobs within the rst 120 days3. After recruitment and selection e ectively onboarding new employees is the most important thing you can do to minimize turnover. Onboarding is the process through which new employees learn about your organization policies procedures job requirements and performance expectations. Having an onboarding plan in place ensures every new employee knows what is expected from him/her.
An e ective onboarding plan not only addresses the paperwork necessary for compliance with employment law but also teaches employees the attitudes knowledge skills and behaviors needed to perform competently in your organization. The goals of onboarding are to
l comply with laws policies and rules l clarify what employees should understand about their new job and your
expectations l ensure employees know the culture and values of your organizations and l introduce employees to critical information and people vital to their success.
Examples of items to be included in your onboarding plan are
l Employee s legal name and social security number l Work authorization documentation (USCIS Form I-9) l Income tax withholding information (IRS Form W-4) l Bene ts l Other payroll deduction(s) l Company organizational structure l Company values l Expected attitudes and behaviors l Policies and procedures l Job requirements l Performance measurement and management
These can be accomplished through a combination of orientation sessions an employee handbook and training. How onboarding is done varies but organizations that do it best have a systematic step-by-step process that is consistently followed with every employee. As a result they experience higher employee retention productivity and customer satisfaction. Additionally their employees have greater job satisfaction and loyalty because they know what is expected of them and what is needed to succeed.

1 Rollag K. Parise S. & Cross R. (2005). Getting new hires up to speed quickly. MIT Sloan Management Review 46 35-41.
2 Smart B. (1999). Topgrading How leading companies win by hiring coaching and keeping the best people. Upper Saddle River NJ Prentice Hall.
3 Krauss A. D. (2010). Onboarding the hourly workforce. Poster presented at the Society for Industrial and Organizational Psychology (SIOP) Atlanta GA

HIRING AND EMPLOYMENT 37

onboarding new hires (cont d)

PRudent onboarding practices

Here are some practices that will help you successfully bring new employees into your organization
l Accurately record the employee s name and social security number (SSN). The Internal Revenue Service s (IRS) Employer s Tax Guide (Publication 15) advises employers to record employees names and SSNs from their social security cards. You can verify SSNs with the Social Security Administration (SSA). For full information regarding SSN Veri cation visit the SSA website at http //www. socialsecurity.gov/employer/ssnv.htm. Because of the potential for nes it is wise to periodically audit your payroll records to ensure the social security numbers are correct.
l Get all company documents and required forms signed by employees at the time of hire. File these documents so you are prepared for an audit or claim later.
l Have each employee sign written agreements regarding wages and conditions of employment. Make the agreements speci c so you and the employee are clear on all expectations.
l Report all new hires to the Georgia New Hire Reporting Program within ten (10) days after employees are hired re-hired or return to work. All new hires re-called or re-hired employees must be reported even if they only work one day.
l You may report your employees online at http //newhire-reporting.com/GANewhire/instruct.aspx.
l Make sure your practices are free from bias. Your hiring performance evaluation and compensation policies must not show bias toward race color religion gender national origin age disability or political a liations and beliefs.
l Do not try to avoid payroll taxes new hire paperwork or unemployment claims by classifying temporary workers as "contract labor." Employees misclassi ed as contractors may create compliance issues requiring the involvement of the GDOL the IRS and/or WHD.

38 hiring and employment

employment
at-will employment
prudent employment practices

Georgia recognizes the doctrine of "employment at will."This means that in the absence of a written contract of employment for a de ned duration either party may terminate the employment relationship for good cause bad cause or no cause at all as long as it is not for an illegal cause.
The following practices are recommended to help you comply with employment law and minimize turnover.
l Keep everything fair and job-related. Whether hiring evaluating promoting transferring disciplining or discharging an employee treat employees fairly and consistently based on job-related rules standards and stated policies to prevent unnecessary claims and lawsuits. Avoid exceptions. If you are about to re an employee before taking the nal step ask yourself "Will this termination be fair and proper under the circumstances "
l Address employee complaints. Do not ignore any complaint. Respond quickly and be sure to inform the employee of the action taken.
l Never make wage deductions advances or loans to employees without rst getting written authorization from the employee. When advancing or loaning money to an employee get a written receipt and a signed repayment agreement.
l Notify employees in writing of changes in pay bene ts and work conditions as far in advance as possible. Help minimize the shock and disappointment by giving employees su cient time to prepare for signi cant changes.
l Maintain a safe and healthy workplace in compliance with OSHA regulations.
l Use a termination checklist when discharging employees. When ring an employee use a termination checklist to ensure the employee is given the full bene t of the termination procedures outlined in your company s policies and speci ed in any warnings they received.
l Do not use a standard resignation form or letter. If an employee is voluntarily quitting have the person write and sign his/her own resignation letter.
l Do not let an employee quit until all legitimate grievances are addressed. If an employee is quitting do your best to ensure the company has done everything appropriate to address all legitimate grievances presented by the employee before he/she leaves.

HIRING AND EMPLOYMENT 39

employment (cont d)

terminating employees

Unfortunately despite your best e orts to hire a person who is a good t for a job occasionally it becomes necessary to re an employee. Discharged employees can le claims for unemployment bene ts. Generally employees who lose their jobs due to a failure to perform the job at an acceptable level or failure to comply with rules of conduct are not eligible for UI compensation. However it is up to the employer to prove the discharge resulted from a speci c act of misconduct and that the employee knew he/she could be red for this reason.
Below are examples of common mistakes employers make when discharging employees that may result in a discharged employee receiving UI bene ts
l Terminating employees without reasonable warning. When an employee is red in the heat of the moment employers often fail to consider if a reasonable number of warnings were given (or the number speci ed in your employee handbook) or if the misconduct can be proven. The employer must show either
l the employee did something so bad he/she should have known he/she would be red without prior warning or
l the employee was given prior notice regarding a policy expressly warning discharge could result from a certain action or lack of action and was given an opportunity to progress through the disciplinary process.
l Failing to discuss the problem with the employee prior to termination. Georgia is an "at will" state which means employers may re workers at any time for any reason. However discussing the problem with the employee and taking steps to resolve the issue prior to dismissal are favorable facts in a UI claims hearing.
l Ignoring company procedures or prior warnings. If employees have been led to believe certain steps will occur prior to termination follow those steps. Your position is compromised when employees are given a written warning stating it is the " rst written warning " and the document lists further steps you fail to do prior to discharging the employee.
l Taking no action when employees complain. Not all complaints are valid and some employees are chronic complainers however it does not look favorable upon your company when an employee has a legitimate grievance and you took no e ective action to address the issue. Complaints usually have some degree of merit. Listen investigate act and document your actions. Employers who are responsive to their employees concerns generally have fewer turnovers and can be con dent of their position in UI claims hearings.
l Retaliating against employees who le complaints. Never retaliate against an employee for reporting safety hazards workplace discriminations or potential compliance issues with employment law.
l Delaying discharging employees who are clearly unsuitable for the job. In general if an employee is clearly unsuitable for the job despite counseling and retraining it is best to discharge the person as soon it becomes clear the person will not work out long term. The longer you employ the person the greater your potential bene t charges will be.

Part 2
unemployment insurance tax

determining your tax liability

In Georgia unemployment bene ts are paid from Georgia s Unemployment Insurance (UI) Trust Fund which is fully funded by employers who pay UI taxes. These taxes cannot be deducted from employees wages.
The GDOL Unemployment Insurance and Regional Operations Division administers the state s UI program in accordance with the provisions of the O cial Code of Georgia Annotated (O.C.G.A.) Title 34 Chapter 8 Sections 1280 hereinafter referred to as the Georgia Employment Security Law. The Unemployment Insurance and Regional Operations Division is responsible for determining employer tax liability and tax rates processing employers quarterly wage reports and tax payments and processing UI bene t claims and appeals.
As an employer your rst step in understanding UI is determining if your business is liable for unemployment taxes. Liability is based on the type of employment covered by UI. Therefore in this section you will learn
l how the Georgia Employment Security Law de nes employment. l what type of employment is covered by UI. l when you become liable for UI and your period of coverage. l when and how you may terminate liability.

44 determining your tax liability

employment
employment defined
employing unit defined
questions regarding employment

To understand the Georgia Employment Security Law you must rst understand what is meant by employment. The Georgia Employment Security Law de nes employment as "any service performed for wages or under any contract of hire."There is no distinction with respect to part-time full-time long-term or temporary employees." O cers of a corporation (including sub-chapter S corporations) are de ned as employees by statute.
An employing unit includes "any individual the legal representative of a deceased individual or any type of organization (i.e. partnership association trust estate joint stock company insurance company limited liability company limited liability partnership corporation employee leasing company professional employer organization common paymaster the receiver or trustee in bankruptcy trustee or successor thereof) which has or had in its employ one or more individuals performing services for it within this state."
Each individual performing service within Georgia for any employing unit which maintains two or more separate establishments within this state will be considered to be employed by a single employing unit for all UI purposes.
Questions regarding employer/employee relationships may be directed to
Georgia Department of Labor Adjudication Unit 148 Andrew Young International Blvd. N.E. Suite 850 Atlanta GA 30303-1751 Telephone 404.232.3301

determining your tax liability

45

COVERED employment

UNDERSTANDING UI COVERAGE

All employers doing business in Georgia are subject to provisions of the Employment Security Law. However not all employers are subject to the taxing provisions of the law. Coverage (tax liability) is determined by the type and nature of the business the number of workers employed and the amount of wages paid for services in employment. The standard for determining an employee s employment classi cation under Georgia law di ers from the standard used by the Internal Revenue Service (IRS).
If you are liable for UI taxes you must pay taxes on the rst $9 500 of gross wages each employee earns. You are also potentially liable for charges resulting from claims for UI bene ts led by your former employees.
As an employer you are automatically liable for unemployment taxes if you
l acquire the organization trade or business or substantially all (90% or more) of the assets of another business that at the time of such acquisition was a liable employer (successor employer).
l are liable to the federal government for Federal Unemployment Tax (FUTA). l are a state or local governmental organization or an instrumentality of a state or
local government.
Coverage under the Georgia Employment Security Law is not required to be identical to coverage under the FUTA). Further determinations of liability (e.g. SS-8 determinations for independent contractor status) made by federal administrative agencies are accepted by GDOL.
Following are descriptions of the various types of employment and their liability for unemployment taxes.

PRIVATE EMPLOYMENT

If you are a private employer you are liable for unemployment taxes if you employ at least one individual whether the same individual is employed each day or some portion of a day in 20 di erent calendar weeks and whether or not the weeks are consecutive. You are also liable if your total gross payroll for any calendar quarter is $1 500 or more. Once either of these conditions is met you are required to report the total payroll for the entire year to the GDOL on a quarterly basis and pay the appropriate amount of taxes each quarter.

PUBLIC EMPLOYMENT

Public or governmental employers are liable under the Georgia Employment Security Law. Although most public employers do not pay quarterly state unemployment tax all governmental subdivisions must have a GDOL tax account and report wages of all employees on a quarterly basis.

46 determining your tax liability

COVERED employment (cont d)

AGRICULTURAL EMPLOYMENT

If you are an agricultural employer you are liable for unemployment taxes if you employ ten (10) or more workers for some portion of a day in 20 di erent weeks in a calendar year whether or not the weeks are consecutive. You are also liable if you pay remuneration in cash of $20 000 or more in any one calendar quarter.
Once either of these conditions is met you are required to report the total payroll for the entire year to the GDOL on a quarterly basis and to pay the appropriate amount of taxes each quarter.

DOMESTIC SERVICE EMPLOYMENT

You are liable for unemployment taxes if you pay cash remuneration of $1 000 or more in any one calendar quarter to an individual who performs domestic service in a private home local club or local chapter of a college fraternity or sorority. Once this condition is met you are required to report the total payroll for the entire year to the GDOL on a quarterly basis and pay the appropriate amount of taxes.
Wages for domestic employees and the appropriate amount of taxes to be paid are reported annually.

NONPROFIT employment

In order to qualify as a nonpro t organization for UI purposes under Georgia law you must have been issued a 501(c)(3) exemption letter by the IRS. Nonpro t organizations described in Section 501(c)(3) of the Internal Revenue Code include any community chest fund or foundation organized and operated exclusively for religious charitable scienti c testing for public safety literary or educational purposes or to foster national or international amateur sports or for the prevention of cruelty to children or animals. Section 501(c)(3) nonpro t organizations are liable if four or more workers are employed for some part of a day in each of 20 di erent weeks during a calendar year.
NOTE When counting workers include all o cers who perform services. If no o cers perform services at least one o cer must be included in the count whether they receive remuneration or not.

TEMPORARY HELP CONTRACTING FIRMS

Temporary help contracting rm means "any person who is in the business of employing individuals and for compensation from a third party providing those individuals to perform work for the third party under the general or direct supervision of the third party." This type of employment is characterized by a series of limited-term assignments of an employee to a third party based on a contract between the temporary help contracting rm and the third party. A separate employment contract exists between the temporary help contracting rm and the temporary help it hires as an employee. Completion of an assignment by the employee does not in itself terminate the employment contract between the temporary help contracting rm and the employee.
The temporary help contracting rm is recognized as the employer of record and is liable for unemployment taxes.

determining your tax liability

47

COVERED employment (cont d)

EMPLOYEE LEASING COMPANIES

Employee leasing companies and professional employer organizations (PEOs) generally are independent businesses that lease employees on a contract basis to various other businesses. Leasing companies and PEOs typically handle all personnel matters such as assignments salaries and payrolls. They also hire and terminate employees.
Both leasing companies and PEOs are recognized as the employer of the employees they lease to others and are responsible for ling reports and paying UI taxes.
Leasing companies and PEOs are required to post a security deposit that may include surety bonds or cash deposits to cover potential unemployment tax liability. If a leasing company or a PEO fails to post the required securities or fails to meet the legal de nition as an employee leasing company or as a PEO the client of the company is the liable party and the employee leasing company or PEO must le reports under the client s account number.

COMMON PAYMASTER

The common paymaster provision allows all of an individual s wages to be reported by a single employer in situations where the individual works concurrently for two or more related corporations. The designated employer (common paymaster) is responsible for payment of UI taxes on the individual s wages up to the $9 500 taxable wage limit. The other related corporations for whom the individual works are not required to report wages or pay taxes on the individual unless wages are paid outside the common paymaster agreement.
Permission for common paymaster status can be granted only if the corporations furnish evidence to the GDOL showing the tests for common paymaster status have been satis ed. Some factors to consider in determining whether corporations are related include the common nancial interests of the corporations stock ownership and whether the corporations have o cers and employees in common. Each legal entity must continue to le and report its own employment until nal approval from the GDOL for common paymaster is received.
If a prospective common paymaster wishes to do the payroll for the related employers there is nothing in the law to prevent this. However it must do so on behalf of the employers and the report must be identi ed by the employers (the legal entity s) GDOL tax account numbers rather than the paymaster s GDOL account number.

48 determining your tax liability

COVERED employment (cont d)

INDEPENDENT CONTRACTORS

The term "independent contractors" while commonly used is not referenced in Georgia s Employment Security Law. It is important you properly classify your workers because misclassifying workers as independent contractors rather than employees can be a costly mistake. If a worker is misclassi ed the GDOL or the USDOL may conduct an investigation to establish your liability.
Independent contractors are not independent just because that is what their employer calls them because that is what they call themselves or because they sign an "independent contractor agreement." Independent contractor status depends on the underlying nature of the work relationship. A good way to think about the concept is this independent contractors are independent business entities who are in a position to make a pro t or loss based upon how they operate their own stand alone business enterprise.
Direction or Control The area of "direction or control" is often an area of confusion for employers when determining if a worker should be classi ed as an independent contractor. Factors that indicate if the employer has exercised direction and/or control over how employees perform tasks include
l Instructions about when where and how to work including instructions on which tools and equipment to use where to purchase supplies what workers to hire or assist with the work what work must be performed by a speci c individual and what order or sequence to follow.
l Training provided by the employer. Employees may be trained to perform services in a particular manner but independent contractors often use their own separately developed methods.
l The extent to which the employee s business expenses are not reimbursed. Independent contractors are more likely to have unreimbursed expenses than employees. Fixed ongoing costs that are incurred whether work is being performed or not are especially important to distinguishing between independent contractors and employees. However employees may also incur unreimbursed expenses.
l The extent of the employee s investment. An employee usually has no investment in the employer s work other than time. Independent contractors often have a signi cant investment in the facilities and equipment they use in performing services for others. However a signi cant investment is not necessary for independent contractor status.
l The extent to which the employee makes his/her services available to the marketplace. Independent contractors generally are free to pursue other business opportunities and o er their services to others in the marketplace.
l How the business pays the employee. Employees are usually guaranteed a regular wage for an hourly weekly or other speci ed period. Independent contractors may also be paid a at fee for the job.
l The extent to which the employee can realize a pro t or loss. Since employers usually provide employees a work place tools materials and supplies and pay the cost of doing business employees do not have an opportunity to make a pro t or loss. However independent contractors have the opportunity to make a pro t or loss from the work they perform.

determining your tax liability

49

COVERED employment (cont d)

INDEPENDENT CONTRACTORS (CONT D)

Georgia Employment Security Law Requirements Georgia s Employment Security Law requires business owners with employees to pay UI taxes. In contrast where an individual does not have employment status as de ned by the law the business owner is not liable for such taxes.
A worker not meeting the statutory tests required for independent contractor exemption as found in O.C.G.A. 34-8-35(f) is considered to be an employee. The Georgia Employment Security Law provides that services performed by an individual for wages are to be considered employment and subject to unemployment insurance taxes unless and until it is shown that
EITHER
A. The individual has been and will continue to be free from control or direction over the performance of such services both under the individual s contract of service and in fact and
B. The individual is customarily engaged in an independently established trade occupation profession or business.
OR
C. The individual and the services performed for wages are the subject of an SS-8 (Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding) by the IRS which decided against employee status.
Only one of the alternative tests above must be satis ed to establish the exemption from unemployment taxes. An employer can meet one or both alternative tests to exempt wages from the de nition of employment.
The IRS Form SS-8 determination referenced in C above is issued by the IRS with respect to an individual worker or a class of workers. The Form SS-8 determination establishes which party (employer or employee) is liable to pay federal employment taxes and income tax withholding. The SS-8 determination is accepted by the GDOL.

MULTI-STATE EMPLOYMENT

When workers perform services for an employer in more than one state the state of coverage is determined by applying four tests as required by Section 34-8-35 of the Georgia Employment Security Law.
Test 1 Localization of Service If a multi-state employee s service is performed entirely within one state (localized) or if the service is performed within and outside the state but the service performed outside the state is "incidental" (temporary or transitory in nature or consists of isolated transactions) then the employee s entire service will be reported to the state in which the service is localized.
Test 2 Base of Operations If an employee s service is not localized within any one state the employee s entire service will be reported to the state in which his base of operations is located provided some service is performed in that state. (This test applies principally to employees such as salespersons and truck drivers who constantly travel in several states.)

50 determining your tax liability

COVERED employment (cont d)

MULTI-STATE EMPLOYMENT (CONT D)

Test 3 Place of Direction and Control If a multi-state employee s service is not localized in any state and no service is performed in the state in which his base of operation is located the employee s entire service will be reported to the state in which the place of direction and control is located provided some service is performed in that state.
Test 4 Place of Residence If Tests 1 2 or 3 do not apply the employee s entire service will be reported to the state in which the employee resides provided some service is performed in that state.
NOTE If the state of coverage cannot be determined after applying the above four tests the service may be covered under a reciprocal coverage agreement. By contacting the appropriate state for approval the employer may report wages to the state in which the employee s service is performed the state in which the employee resides or the state in which the employer maintains a place of business.

NON-COVERED EMPLOYMENT

The following types of employment are NOT subject to unemployment taxes
l Services performed by a proprietor in the operation of the proprietor s own business.
l Services performed by the father mother spouse or minor children younger than age 21 of the individual owner of a proprietorship.
l Services performed by a partner in a partnership.
l Services performed by government workers who are elected o cials or o cials in non-tenured major policymaking advisory positions which require less than eight hours of work a week members of a legislative body or the judiciary and members of the state National Guard or Air National Guard except when called to federal duty.
l Services performed by workers hired for casual labor not in the usual course of the employer s trade or business unless the cash remuneration is $50.00 or more and the individual is regularly employed to perform such services.
l Patients performing services for a hospital.
l Student nurses in the employ of a hospital or nurses training school.

determining your tax liability

51

COVERED employment (cont d)

NON-COVERED EMPLOYMENT (CONT D)

l Services performed in the employ of a hospital or a clinical training program for a period of one year by an individual immediately following the completion of a fouryear course in a medical school chartered or approved pursuant to state law.
l Newspaper carriers under 18 years of age.
l Insurance agents or solicitors if their total wages are based solely on commission.
l Real estate sales agents if their total wages are based solely on commission.
l Students if the employment is a recognized part of a program which combines academic instruction with work experience.
l Employees of a church or religious order or certain church-related organizations.
l Inmates in a state prison or other state correctional institution.
l Certain independent contract carriers of publishers or distributors of printed materials.
l Certain common carriers of property persons or property and persons by an individual consisting of the pickup transportation and delivery of property persons or property and persons.
l Certain direct sellers.

52 determining your tax liability

COVERAGE PERIOD
DATE OF LIABILITY
TERMINATION OF LIABILITY

Employers meeting the de nition of employing unit under the Georgia Employment Security Law will remain a liable employer unless liability is terminated.
An employer becomes liable for State Unemployment Tax (SUTA) as of January 1 or the rst day of employment of the year in which employment rst meets the provisions of the law with regard to tax liability.
Employers may request to terminate liability if they no longer meet the liability requirements under the law. A request to terminate coverage must be submitted on an Employer s Application for Termination of Coverage (DOL-6) prior to April 30th following the year in which the liability requirements were no longer met.
Employers who become liable by reason of voluntary election [O.C.G.A. 34-8-33(a)(7)] cannot terminate coverage unless two full calendar years have passed since they voluntarily elected coverage.

ESTABLISHING YOUR TAX ACCOUNT

The GDOL s record of your tax liability and tax rate is maintained via an employer tax account. In this section you will learn about opening and maintaining your tax account.

54 ESTABLISHING YOUR TAX ACCOUNT

ESTABLISHING A TAX ACCOUNT

EMPLOYER STATUS REPORT

All employing units having individuals performing services in Georgia and who meet one of the conditions of liability described in the Covered Employment section of this handbook are required to establish an unemployment insurance tax account with the GDOL by ling an Employer Status Report (DOL-1A). Employers bringing or sending employees to Georgia from another state may be exempt from this requirement if such employees are "multi-state" employees according to the de nitions in the Glossary. An Employer Status Report (DOL-1A) is also required when one employer acquires all or part of the assets of another employer. An example of the Employer Status Report (DOL-1A) appears on the following page.
The Employer Status Report (DOL-1A) provides the GDOL the information needed to determine an employing unit s tax liability or non-liability based on ownership location and type of business. The form may be obtained by selecting the Forms and Publications link on GDOL s web site at http //www.dol.state.ga.us.
Complete both sides of the form and retain a copy for your records. Send the completed form to the GDOL by mail or fax to the address or fax number listed on the form.

ESTABLISHING YOUR TAX ACCOUNT

55

EMPLOYER STATUS REPORT (DOL-1A) - FRONT

56 ESTABLISHING YOUR TAX ACCOUNT
EMPLOYER STATUS REPORT (DOL-1A) - BACK

ESTABLISHING YOUR TAX ACCOUNT

57

ESTABLISHING A TAX ACCOUNT (cont d)

REGISTRATION OF GOVERNMENTAL ORGANIZATIONS

Governmental agencies or organizations are required to complete a Registration of Governmental Organizations Form (DOL-1G) in its entirety obtain the signature of an authorized o cial and submit the form to the GDOL. An example of the DOL-1G appears on the following page. The form is located on the GDOL web site under Forms and Publications.
The completed Registration of Governmental Organizations Form (DOL-1G) may be submitted to the GDOL by mail or fax.

58 ESTABLISHING YOUR TAX ACCOUNT

REGISTRATION OF GOVERNMENTAL ORGANIZATIONS FORM (DOL-1G) - PAGE 1

GEORGIA DEPARTMENT OF LABOR SUITE 850 148 ANDREW YOUNG INTERNATIONAL BLVD. N.E. ATLANTA GA 30303-1751

INSTRUCTIONS ON REVERSE SIDE

REGISTRATION OF GOVERNMENTAL ORGANIZATIONS

IMPORTANT - THIS REPORT MUST BE FILED The law provides that all employing units shall file a report of its employment during a calendar year. For the purpose of aiding you in complying with OCGA Section 34-8-121 of the Employment Security Law this form has been prepared to assist you in furnishing the required information. Answer all questions fully and if additional space is necessary under any item attach signed and dated sheets which bear the words "Supplement to Form DOL-1G."

Each false statement or willful failure to furnish this report is punishable as a misdemeanor. Each day of such failure or refusal constitutes a separate offense.

TYPE OR PRINT IN INK 1. Governmental
Organization Name

Ga. DOL Account No. (If already assigned)

Address (Do not use a

Number & Street or Route Number

P.O. Box No.)
City

GA County

Zip Code

Area Code

Telephone No.

Mailing Address

Number & Street or Route Number

(If different)
City

GA County

Zip Code

2. Federal Employer Identification No. (FEIN - 9 Digits)

-

3. If created by statutes after December 31 1977 what date did you begin employing workers

4. Type of Governmental Organization (check appropriate block)

A.

State

B.

Instrumentality of State

C.

County

D.

City

I.

Other or any combination of above.

E.

County School System

F.

City (Independent) School System

G.

Instrumentality of County

H.

Instrumentality of City

Explain

(If additional space needed attach sheets.)

5. As a governmental organization you have the option to elect to pay unemployment contributions under the regular contributory method of pay-

ment or to make payments in lieu of contributions (reimbursable method). Make your election by checking appropriate block below.

Contributory method of payment

Payments in lieu of contribution (reimbursable)

6. Since December 31 1977 did you acquire any other organization or any portion thereof or merge with another organization

Yes No

If yes complete Item 9 on reverse side.

7. Average number of employees in your governmental organization last month.

8. Title address and phone number of person or office which maintains the financial records of the governmental organization.

CERTIFICATION I hereby certify under penalties or perjury that the foregoing statements and those contained in any attached sheets signed by me are true and correct and that I am authorized to execute this report on behalf of the governmental organization named.

Signature and Title of Authorized Official

Date
DOL-1G (R-10/03)

ESTABLISHING YOUR TAX ACCOUNT
REGISTRATION OF GOVERNMENTAL ORGANIZATIONS FORM (DOL-1G) - PAGE 2

59

9. Date Acquired

From hom (Organization Name)

Address

Trade Name of above if any
All of Georgia Operations Substantially all of Georgia Operations (90

or more)

To your knowledge does the former organization continue to have employees

DOL Account No.

(Previous Organization)

Part of Georgia Operations (less than 90 )

Yes

Did you acquire goods wares merchandise

equipment etc.

es No

No

INSTRUCTIONS FOR THE COMPLETION OF REGISTRATION OF GOVERNMENTAL ORGANIZATION DOL-1G (Numbers Correspond to Items on Form)
1. Enter the official name of your governmental organization. (State Dept. Commission Board Authority County City School System etc.) If you have already been assigned a Georgia Department of Labor Account No. (Ga. DOL Account No.) by this Department please insert the number. Address - Physical location of organization s main office. Mailing Address to which you authorize us to mail all reports correspondence etc.
2. Enter your Federal Employer Identification Number.
3. If governmental organization was created after December 31 1977 enter the date you first began employing workers.
4. Indicate by check mark type of organization.
5. The Employment Security Law provides governmental organizations an option to elect to pay unemployment contributions under the regular contributory method of payment or to make payments in lieu of contributions (reimbursable method). Indicate which option you have elected by checking appropriate block. If you are unable to make your election as to method of payment at this time you will have a 30-day period immediately following the date of the official notice of liability in which to file a written notice of your election.
6. Self-explanatory.
7. Please include in your count employees at all locations.
8. Person or office so identified should have access to all financial records and authority to furnish required information to this Department as may be needed.
9. Complete this item if since December 31 1977 you have acquired another organization (governmental or private) or any portion thereof or merged with another organization (governmental or private). Indicate the date of acquisition or merger and provide all information concerning the previous organization s name address and DOL Account Number.

60 ESTABLISHING YOUR TAX ACCOUNT

ESTABLISHING A TAX ACCOUNT (cont d)

VOLUNTARY ELECTION OF COVERAGE

An employing unit not otherwise subject to the taxing provisions of the law may elect to become a covered employer. A Voluntary Election of Coverage Under the Employment Security Law Form (DOL-2) must be completed and sent with the Employer Status Report (DOL-1A) to the following address for approval by the Commissioner of Labor
Georgia Department of Labor Adjudication Section 148 Andrew Young International Blvd. N.E. Suite 850 Atlanta GA 30303-1751 Telephone 404.232.3301 Fax 404.232.3285
Voluntary elections are e ective as of the date stated in the approval letter and remain in e ect for a minimum of two full calendar years.
An example of the Voluntary Election of Coverage Under the Employment Security Law Form (DOL-2) is on the following page.

ESTABLISHING YOUR TAX ACCOUNT
voluntary election of coverage under the employment security law (DOL-2)

STATE OF GEORGIA DEPARTMENT OF LABOR Suite 850 Sussex Place 148 Andrew Young International Blvd. N. E. Atlanta Georgia 30303-1751

(Do not write in this space)

Employer No.

Approved Yes

No

Date

Date copy sent to Employer

VOLUNTARY ELECTION OF COVERAGE UNDER THE EMPLOYMENT SECURITY LAW
Type or print answers in ink and return both copies to the above address. A copy of the application will be returned to you advising the action taken by the Department.

61

1.
Owner(s) (Legal Entity)
2.
Business Name
3.
Business Address
4.
Mailing Address
5. Date election of coverage is to become e ective

The undersigned being an employing unit in Georgia does hereby voluntarily elect coverage pursuant to the terms and provision of OCGA Section 34-8-33(a)(7) of the Employment Security Law. (Note See two years minimum stipulation.)

Date Date

Firm Name By Title
Approved Mark Butler
Commissioner
By Title

DOL-2 (R-6/04)

62 ESTABLISHING YOUR TAX ACCOUNT

maintaining your account

gdol online employer services

Upon establishing an employer tax account with the GDOL you are encouraged to utilize the GDOL s online services. The services currently available include
l Forms and publications l Filing tax and wage reports l Making UI tax payments l Filing partial unemployment claims l Responding to special wage requests l Changing addresses l Recruiting new employees (submitting job order requests) l Getting information concerning a closure or layo
Visit our web site regularly for new services to assist you in complying with Georgia s Employment Security Law.

employer passwords

Most GDOL online services require the use of a password. A password can be obtained by accessing the GDOL web site at http //www.dol.state.ga.us and using the Site Index to select Get or Change Employer Internet Password link. The password can be utilized immediately upon completion of the application.

sale of business

Liable employers who sell or merge their businesses to another entity (a successor) should notify the GDOL of the date of the sale or merger in writing by submitting a letter on company letterhead to the Adjudication Section at
Georgia Department of Labor Adjudication Unit 148 Andrew Young International Blvd. N.E. Suite 850 Atlanta GA 30303-1751 Telephone 404.232.3301 Fax 404.232.3285

business closure

Liable employers who close their businesses (without a successor) should notify the GDOL of the date of the closure in writing by submitting a letter on company letterhead to the Adjudication Unit at
Georgia Department of Labor Adjudication Unit 148 Andrew Young International Blvd. N.E. Suite 850 Atlanta GA 30303-1751 Telephone 404.232.3301 Fax 404.232.3285

change of mailing address or physical business location

You can change your mailing and/or physical business location addresses on GDOL web site at www.dol.state.ga.us by going to the Site Index and selecting Employer Address Change.
You may also submit address changes to the GDOL on a Request for Employers Change of Address Form (DOL-2867T). The form is available under Forms and Publications on the GDOL web site. An example of the DOL-2867T appears on the following page.

ESTABLISHING YOUR TAX ACCOUNT

63

request for employer s change of address (DOL-2867T)

GEORGIA DEPARTMENT OF LABOR
148 Andrew Young International Blvd. Suite 850 Atlanta Georgia 30303
Phone (404) 232-3001 - Fax (404) 232-3285

REQUEST FOR EMPLOYER S CHANGE OF ADDRESS

GDOL Account Number

Federal ID Number

Employer Name

Company Name

Mailing Address

Principle Business Location in GA
Address

Address

City

State

Zip Code

City

State

Zip Code

County

Company E-mail address

Company E-mail address

Telephone No.

Fax No.

Telephone No.

Fax No.

Additional Addresses Service Provider/Quarterly Tax and Wage Reports

Service Provider s Name

Address

City

State

Zip Code

Company E-mail address

Telephone No.
Claims Noti cation Address

Fax No.

Tape and Diskette Return

Address

Contact

City

State

Zip Code

Address

Telephone No.

Fax No.

City

State

Zip Code

Company E-mail

Telephone No.

Fax No.

Address

Address for Employer Quarterly Notice of Bene t Charges DOL-620

City

State

Zip Code

Telephone No.

Fax No.

I understand that all noti cations to the employer with the above Georgia Department of Labor account number will be sent to the designated addresses listed above.

Date

Telephone No.

Signature

Print Name and Title

DOL-2867T (8/05)

64 ESTABLISHING YOUR TAX ACCOUNT

maintaining your account (cont d)

power of attorney

You may elect to appoint an agent to represent your business in all matters a ecting your UI taxes with or without limitations related to claims contributions and tax rates. To assign a representative complete the applicable GDOL Power of Attorney form. The forms are available under Forms and Publications on GDOL web site at www.dol.state.ga.us. Mail the completed form to the Adjudication Unit at
Georgia Department of Labor Adjudication Unit 148 Andrew Young International Blvd. N.E. Suite 850 Atlanta GA 30303-1751 Telephone 404.232.3301 Fax 404.232.3285

sides / sides e-response

After you have established your tax account you are encouraged to establish a user account for SIDES or SIDES E-Response. SIDES and SIDES E-Response allow you to receive and respond to requests from the GDOL for claims information electronically which reduces your costs and saves you time. SIDES is a computer-to-computer interface for employers and third-party administrators (TPAs) that handle a large volume of claims. SIDES E-Response is a free web-based application for employers and TPAs that handle a limited number of UI claims.
You may register to use SIDES E-Response on the GDOL s website. Use the Site Index to locate SIDES/SIDES E-Response. If you are interested in SIDES contact the Georgia SIDES Help Desk at 404.232.7401 or SIDES gdol.ga.gov.
To learn more see SIDES and SIDES E-Response under Responding to Claims for Bene ts.

understanding georgia s tax provisions

The tax provisions of the Internal Revenue Code and the Georgia Employment Security Law requires liable employers to pay unemployment insurance taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA).
In this section you will learn
l about SUTA and FUTA requirements. l how your taxes are computed. l about tax notices. l how to pay your taxes.

66 understanding georgia s tax provisions

employment security law tax provisions

state unemployment tax (suta)

Employers liable under the Georgia Employment Security Law are required to pay UI taxes under the State Unemployment Tax Act (SUTA). SUTA nances the UI Trust Fund which is used to pay unemployment bene ts to eligible claimants. The Georgia Employment Security Law ensures that the UI Trust Fund is maintained at a reasonably adequate level by requiring an annual computation known as the State-wide Reserve Ratio (SRR). The SRR is computed as of June 30 of each year by dividing the balance in the trust fund including accrued interest by the total covered wages paid in the state during the previous calendar year.
E ective January 1 2013 the taxable wage base in Georgia is $9 500 in accordance with 2012 Georgia House Bill 347. All wages over the taxable wage base are non-taxable. These taxes are paid by the employer and cannot be deducted from the wages of any employee. The employer tax payments are deposited in the state s UI Trust Fund.

federal unemployment tax (futa)

Most employers that are liable for SUTA are also liable for Federal Unemployment Tax (FUTA). FUTA is designed to produce federal revenue to pay administrative costs of operating state unemployment compensation programs and the public employment services. It also pays the federal share of extended unemployment bene ts. FUTA is paid directly to the IRS.
Employers pay FUTA on the rst $7 000 of each employee s annual wages. Currently the FUTA rate is 6.0 percent.

futa credits

Employers who pay their state unemployment tax timely and in full can receive a 5.4 percent FUTA credit if their state does not have an outstanding loan with the federal government to pay unemployment bene ts that was not repaid within two years. Therefore employers receiving the maximum FUTA credit have a FUTA tax rate of 0.6 percent.
If a state has outstanding loan balances on January 1 for two consecutive years and does not repay the full amount of its loans by November 10 of the second year the FUTA credit rate for employers in that state is reduced until the loan is repaid. The reduction schedule is 0.3 percent for the rst year the state is a credit reduction state another 0.3% for the second year and an additional 0.3 percent for each year thereafter until the state repays its loan in full. Additional o set credit reductions may apply to a state beginning with the third and fth taxable years if a loan balance is still outstanding and certain criteria are not met.
Georgia employers experienced FUTA credit reductions in 20112013 as a result of the state borrowing federal funds to pay unemployment bene ts after the depletion of the UI Trust Fund in 2009 because of record unemployment during the recession that began in 2008. The loans were repaid in 2014 and the FUTA credit returned to the maximum percentage for employers making timely tax payments.

administrative assessments

The Georgia Employment Security Law requires an administrative assessment of .08 percent be applied to taxable wages paid by most employers. Administrative assessment funds are deposited into a state account and appropriated back to the GDOL for administrative purposes. The funds are used to improve services to Georgia employers and provide outstanding customer service to all Georgians. Employers are required under federal mandate to make a separate calculation for the .08 percent assessment when computing their total taxes.

understanding georgia s tax provisions 67

PAYMENT METHODS
CONTRIBUTORY PAYMENT METHOD

There are two methods of paying unemployment insurance taxes--contributory and reimbursable. Most employers are contributory employers who pay taxes (contributions) at a speci ed tax rate on a quarterly basis. All contributory employers pay taxes at a rate based on their historical experience. (See Experience Ratings under Tax Rates.).

NOTE Contributory employers that have domestic employment only can report tax and wage contributions annually. See Employers with Only Domestic Service Employees under Tax and Wage Reports for more information.

REIMBURSABLE PAYMENT METHOD

Governmental employers and Internal Revenue Code Section 501 (c)(3) nonpro t organizations may choose to pay taxes quarterly on a contributory basis or they may choose to make payments "in lieu of contributions." That is they may elect to reimburse the GDOL for bene ts paid to their former employees.
Reimbursable employers report their wages to the GDOL on a quarterly basis. However they do not pay UI taxes until bene ts are paid to their employees. GDOL mails a Reimbursable Employer Quarterly Bill (DOL-621) whenever bene t payments are to be reimbursed which includes an Employer Quarterly Statement of Bene t Charges (DOL-620) showing the bene ts paid to each individual. The bill must be paid within 30 days to avoid interest charges.
Non-pro t employers electing the reimbursable method of payment must submit an Election to Reimburse Bene ts Paid in Lieu of Contributions Form (DOL-11) no later than 30 days from the date of registration to the Adjudication Section at
Georgia Department of Labor Adjudication Section 148 Andrew Young International Blvd. N.E. Suite 850 Atlanta GA 30303-1751 Telephone 404.232.3301 Fax 404.232.3285
The election request must be approved by the Commissioner of Labor or his designee. Nonpro t employers electing the reimbursable payment method are required to le either a cash deposit surety bond or other acceptable securities with the GDOL.

68 understanding georgia s tax provisions

PAYMENT METHODS (CONT D)

CHANGING PAYMENT METHODS

Your selected method of tax payment to GDOL whether contributory or reimbursable must remain in e ect for a minimum of two calendar years. After that time you may change your payment method by submitting a written request on company letterhead to the Adjudication Unit.
Contributory employers wanting to change to the reimbursable payment method must also submit a completed Reimburse Bene ts Paid in Lieu of Contributions Form (DOL-11) to the Adjudication Unit no later than 30 days prior to the beginning of the calendar year for which the change is e ective.
Send requests to change your payment method to
Georgia Department of Labor Adjudication Section 148 Andrew Young International Blvd. N.E. Suite 850 Atlanta GA 30303-1751 Telephone 404.232.3301 Fax 404.232.3285

understanding georgia s tax provisions 69

ELECTION TO REIMBURSE BENEFITS PAID IN LIEU OF CONTRIBUTIONS (DOL-11)

STATE OF GEORGIA - DEPARTMENT OF LABOR 148 Andrew Young International Blvd. N. E. Suite 826
Atlanta Georgia 30303-1751 Phone (404) 232-3312

(Do not write in this space.)

Georgia DOL Account No.

Approved

Yes

No

By

E ective Date

Date Mailed to Employer

ELECTION TO REIMBURSE BENEFITS PAID IN LIEU OF CONTRIBUTIONS
Type or print answers in ink and return both copies to the above address. A copy of the application will be returned to you advising the action taken by the Department.

1. Owner(s) (Legal Entity)
2. Business Name
3. Business Address
4. Mailing Address
5. Date Election to be E ective
The undersigned does hereby voluntarily elect in lieu of contributions to reimburse the Georgia Department of Labor for bene t payments made based on wages paid by this employing unit as provided for under Paragraph (b) of OCGA Section 34-8-158 of the Employment Security Law. It is understood that this election upon approval of the Commissioner of Labor shall be for a minimum period of two complete calendar years.

Enter Taxable Wages paid during the preceding calendar year. (Taxable wages line 4 Employer s Quarterly Tax and Wage Report)

3rd Qtr. 20

$

4th Qtr. 20

$

1st Qtr. 20

$

2nd Qtr. 20

$

Total for Year

$

Firm Name By Title Date

To Be Completed by Georgia Department of Labor

Pursuant to Paragraph (a) of OCGA Section 34-8-160 of the Employment Security Law you are hereby noti ed that you are required

within thirty days from

to execute and le with

(Date Approved)

the Commissioner of Labor a cash deposit or surety bond in the amount of $

. This same section

permits you in lieu of either the cash deposit or surety bond to deposit with the Commissioner of Labor acceptable securities

in the amount of $

.

You are required within thirty days from

(Current Date)

to complete a

"Reimbursable Employer s Election of Cash Deposit Surety Bond or Securities" form DOL-12 and return it to this Department.

The above election is hereby

Approved E ective Disapproved for the following reasons

Mark Butler Commissioner
By

UI Legal

DOL-11 (R-3/11)

70 unders