Georgia Governor Brian Kemp approved legislation (SB 160) that temporarily lowers the state unemployment insurance (SUI) tax rate for new employers from 2.7% to 2.64% and reinstates the 0.6% administrative assessment.

Administrative assessment

Under prior law, and for several decades, an administrative assessment of 0.6% up to the SUI wage base applied and was last renewed through December 31, 2022. The Georgia legislature did not renew the assessment for 2023.

SB 160 restores the administrative assessment, effective January 1, 2024, through December 31, 2026. There is no administrative assessment for 2023.

The administrative assessment, which will be shown on the quarterly SUI return, applies only to experience-rated employers and not to reimbursing employers or those assigned the new employer rate.

The assessment is not included in SUI contributions reported on the federal Form 940.

New employer SUI rate

Under prior law, the new employer rate was increased from 2.64% to 2.7%, effective January 1, 2023.

SB 160 reverts the new employer rate to the lower 2.64% through December 31, 2026, and returns it to 2.7% effective January 1, 2027.

2023 SUI taxes

The Georgia 2023 SUI tax rates range from 0.06% to 8.1%, up from 0.4% to 8.1% in 2022. The new employer rate is 2.7%, up from 2.64% in 2022. As noted previously, the 0.6% administrative assessment does not apply in 2023. (Email response to EY inquiry, Georgia Department of Labor representative, 2-27-2023.)

The 2023 SUI rate notices were issued on January 3, 2023.

The 2023 SUI taxable wage base continues at $9,500. (Georgia Department of Labor, Employer frequently asked questions.)

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Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor