March 26, 2020

Filing Employer Partial Unemployment Claims

The reality of the COVID-19 containment efforts is that many Atlanta and Georgia businesses have been forced to shut down or drastically reduce production, manufacturing or other services. In a short period of time, these businesses have drastically reduced revenue forecasts while looking for ways to reduce expenses. Some have decided to apply for low-interest loans including those offered through the Small Business Administration, while others have been forced to make the difficult decision of laying off employees or reducing work hours. When a Georgia employer reduces employee hours because of a COVID-19 issue, they are required to file a partial unemployment claim with the Georgia Department of Labor (GDOL). To help clients, prospects and others understand the requirement, Wilson Lewis has provided a summary of key points below.

Eligibility

A business is required to submit employer filed claims for full and part-time employees that have been temporarily laid off or have had their hours cut because of a lack of work related to the COVID-19 crisis. The partial unemployment claims should only be filed for those employees who are expected to return to work once the emergency ends. It’s important to note employees must be U.S. citizens or those with permission to work in the U.S.

Claims should not be submitted for those who are on vacation, temporary employees, have been employed in another state in the last 18 months, have been employed by the federal government/active military service in the last 18 months, 1099 employees or are permanently separated from the company.

Claim Filing Information

In order to file a claim for an employee, it’s necessary to have the following information, including:

• Name
• Address
• Social Security Number
• Date of Birth
• Work Authorization Information (Non-U.S. Citizens)
• Federal and State Withholding Preferences
• Earnings – Employers should report gross wages minus the amount of pay prior to deductions for work performed during the week in which the claim is being made. Remember to also report vacation, holiday and other earnings during the week it was earned.

Filing Tips

All unemployment claims must be filed online with the Georgia Department of Labor as their offices are closed due to the COVID-19 emergency. When submitting the claim remember the following.

• An employer must file a claim for each pay period. Remember a week of partial unemployment consists of the employer’s established pay week.
• There must be 7 days between payment week ending dates.
• Ensure the employee’s name. social security number and date of birth have been verified and are accurate. Each employee’s information must match the Social Security Administration’s records. If it does not, employers may be required to resubmit the claim resulting in a delay of benefit payment.
• The GDOL does not accept claims filed before the week ending on the claim ends. For this reason, it’s important to time the claim to match their requirements.

Penalties

Any employer that is found to be in violation of the rule will be required to pay the GDOL for the full amount of the unemployment benefits paid to the employee.

Contact Us

Atlanta and Georgia employers which have already, or are planning to, temporarily reduce hours or lay off employees due to COVID-19 should be ready to submit these claims. Complying with this requirement will ensure affected employees are given quick access to benefits. If you have questions about the information outlined above or need assistance with a tax issue, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us.