Georgia Labor Commissioner Mark Butler announced today that nearly 250,000 Georgia businesses will get a tax break in 2020.
The $45 million cut in unemployment insurance taxes is due to the state’s booming economy.
“I’m proud to be able to offer this break to Georgia’s businesses,” Butler said. “Reducing taxes is the right thing to do for hardworking Georgians, in this case Georgia’s businesses.”
Unemployment insurance taxes are collected by the Georgia Department of Labor to pay out unemployment claims. Record low unemployment paired with record low claims means GDOL needs fewer tax dollars in 2020.
Georgia has one of the shortest duration of claims in the country at just eight weeks. The national average, at about 15 weeks, is nearly double that.
Roy Bowen, president of the Georgia Association of Manufacturers, said the relief is good news to his members.
Bowen said, “This welcomed action by Commissioner Butler reinforces Georgia’s distinction as the #1 state for business.”
Tax breaks for companies will depend on the number of employees and frequency of claims filed.
Along with businesses receiving a tax cut, Georgia increased the maximum for weekly benefits from $330 a week to $365 a week, effective July 2019.
At a substantial savings to taxpayers, GDOL no longer mails out tax rate notices but now posts the notices online. Businesses can conveniently visit dol.georgia.gov for all information regarding tax rate notices.