• 16
  • December
    2011

Every Georgia business has to pay a variety of fees and taxes; this is simply part of the cost of doing business. While no business owner likely enjoys paying these expenses, at least some of the fees and taxes make sense and are of a reasonable amount, others however can sometime seem out of line or unnecessary. Regardless of the perceived reasonableness of the fee, it is vitally important that the amount of these expenses is predictable so business owners are able to plan for them and make room in their budgets.

An unwanted surprise likely awaits Georgia business owners in the coming New Year. News reports indicate that the federal government plans to double to amount if tax it levies on Georgia on businesses for each private employee.

Georgia Labor Commissioner, Mark Butler, has said that he recognizes that this is a very large problem. He also noted that his office intends to send out notices of the increase soon.

The increase in the tax rate is required in order to offset a loan that the state borrowed to pay out unemployment benefits. The initial loan was $720 million to prop up the state's unemployment trust fund. Georgia has so far paid back only $21 million. Sources say they may have to also cut or otherwise reconfigure unemployment benefits to help make up for the assets.

Interestingly, according to the WSBTV Channel 2 News report, many state legislators were not even aware of the increase until they were asked about by the station's reporters.

Source: WSBTV Channel 2 News "Georgia businesses will pick up tab for unemployment loan," Lori Geary, Dec. 14, 2011