Georgia businesses are getting a tax break next year. Georgia Labor Commissioner Mark Butler making the announcement Monday. Butler says 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.
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.