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O.C.G.A. § 34-8-156 — State-wide Reserve Ratio; reduction in tax rate | Georgia Code
O.C.G.A. § 34-8-156 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 34 LABOR AND INDUSTRIAL RELATIONS

Section 8. Employment Security, 34-8-1 through 34-8-280.

ARTICLE 5 CONTRIBUTIONS AND PAYMENTS IN LIEU OF CONTRIBUTIONS

34-8-156. State-wide Reserve Ratio; reduction in tax rate.

  1. A State-wide Reserve Ratio shall be computed as of June 30 of each year by dividing the balance in the trust fund, including accrued interest, by the total covered wages paid in the state during the previous calendar year. Any amount credited to the state's account under Section 903 of the Social Security Act, as amended, which has been appropriated for the expenses of administration, whether or not withdrawn from the trust fund, shall be excluded from the trust fund balance in computing the State-wide Reserve Ratio.
  2. For the period on or after January 1, 1990, but prior to January 1, 1995:
    1. When the State-wide Reserve Ratio, as computed above, is 3.3 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
    2. When the State-wide Reserve Ratio, as calculated above, is less than 3.0 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
  3. For the period on or after January 1, 1995, but prior to January 1, 1997:
    1. When the State-wide Reserve Ratio, as computed above, is 3.3 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
    2. When the State-wide Reserve Ratio, as calculated above, is less than 3.0 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
    1. For the period on or after January 1, 1997, but prior to January 1, 1998:
      1. When the State-wide Reserve Ratio, as computed above, is 3.0 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
      2. When the State-wide Reserve Ratio, as calculated above, is less than 2.6 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
    2. For the period on or after January 1, 1998, but prior to January 1, 1999:
      1. When the State-wide Reserve Ratio, as computed above, is 2.4 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
      2. When the State-wide Reserve Ratio, as calculated above, is less than 2.1 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
    3. For the period on or after January 1, 1999, but prior to January 1, 2000:
      1. When the State-wide Reserve Ratio, as computed above, is 2.4 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
      2. When the State-wide Reserve Ratio, as calculated above, is less than 2.0 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
    4. For the period on or after January 1, 2000:
      1. When the State-wide Reserve Ratio, as calculated above, is 2.4 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
      2. Except for any year or portion of a year during which the provisions of paragraph (1) of subsection (f) of Code Section 34-8-155 apply, when the State-wide Reserve Ratio, as calculated above, is less than 1.7 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:

        provided, however, that for the periods of January 1 through December 31, 2004; January 1 through December 31, 2005; and January 1 through December 31, 2006, the overall increase in the rate required under this subparagraph shall be suspended and the provisions of this subparagraph shall be null and void, except in the event the State-wide Reserve Ratio, as calculated above, is less than 1.00 percent on the computation date with respect to rates applicable to calendar year 2004, 2005, or 2006, then for each such year the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 35 percent, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155; and provided, further, that for the periods of January 1 through December 31, 2007, January 1 through December 31, 2008, January 1 through December 31, 2009, January 1 through December 31, 2010, January 1 through December 31, 2011, and January 1 through December 31, 2012, the overall increase in the rate required under this subparagraph shall be suspended and the provisions of this subparagraph shall be null and void, except in the event the State-wide Reserve Ratio, as calculated above, is less than 1.25 percent on the computation date with respect to rates applicable to calendar year 2007, 2008, 2009, 2010, 2011, or 2012, then for each such year the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 50 percent, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155; and provided, further, that for the period of January 1 through December 31, 2013, and for each calendar year period thereafter, the overall increase in the rate required under this subparagraph shall be suspended and the provisions of this subparagraph shall be null and void, except in the event the State-wide Reserve Ratio, as calculated above, is less than 1.25 percent on the computation date with respect to rates applicable to calendar year 2013 or any calendar year thereafter, then for each such year the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 50 percent, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155; provided, however, that if any funds borrowed by the Commissioner from the United States Treasury pursuant to Code Section 34-8-87 are unpaid or if the Unemployment Compensation Fund balance is less than $1 billion, then the Commissioner of Labor shall impose an increase in the overall rate of 50 percent, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155.

    1. For any calendar year prior to January 1, 1999, with respect to which the State-wide Reserve Ratio shall equal or exceed 2.1 percent, as computed pursuant to the provisions of this Code section, contribution rates shall be further reduced for the succeeding calendar year by a percentage which shall be computed in the following manner:
      1. The dollar amount by which the Unemployment Trust Fund exceeds the dollar amount which equates to a State-wide Reserve Ratio of 2.1 percent shall be divided by the total of contributions collected attributable to wages paid during the preceding calendar year, excluding penalty and interest, as of the computation date as that term is defined in Code Section 34-8-28;
      2. The resulting percentage shall be used to reduce all experience rated contribution rates by that same percentage; provided, however, that the resulting reduction shall not reduce contribution rates below the level which will produce a contribution rate of 5.4 percent for maximum deficit reserve accounts. This reduction in contribution rates shall be valid for the succeeding calendar year only; and
      3. Accounts which are not eligible for a computed contribution rate as provided in Code Section 34-8-152 shall not receive the reduction in rates.
    2. For any calendar year on and after January 1, 1999, with respect to which the State-wide Reserve Ratio shall equal or exceed 2.0 percent, as computed pursuant to the provisions of this Code section, contribution rates shall be further reduced for the succeeding calendar year by a percentage which shall be computed in the following manner:
      1. The dollar amount by which the Unemployment Trust Fund exceeds the dollar amount which equates to a State-wide Reserve Ratio of 2.0 percent shall be divided by the total of contributions collected attributable to wages paid during the preceding calendar year, excluding penalty and interest, as of the computation date as that term is defined in Code Section 34-8-28;
      2. The resulting percentage shall be used to reduce all experience rated contribution rates by that same percentage; provided, however, that the resulting reduction shall not reduce contribution rates below the level which will produce a contribution rate of 5.4 percent for maximum deficit reserve accounts. This reduction in contribution rates shall be valid for the succeeding calendar year only; and
      3. Accounts which are not eligible for a computed contribution rate as provided in Code Section 34-8-152 shall not receive the reduction in rates.
  6. The computed rates after application of percentage reductions or increases will be rounded to the nearest one-hundredth of 1 percent. The Commissioner will give notice to each employer on any rate change by reason of the above provisions.

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Reduction --------- --------- --------- 3.3 percent 3.7 percent 40 percent 3.7 percent and over 60 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Increase --------- --------- --------- 2.6 percent 3.0 percent 40 percent Under 2.6 percent 60 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Reduction --------- --------- --------- 3.3 percent 3.7 percent 40 percent 3.7 percent and over 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Increase --------- --------- --------- 2.6 percent 3.0 percent 40 percent Under 2.6 percent 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Reduction --------- --------- --------- 3.0 percent 3.6 percent 25 percent 3.6 percent and over 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Increase --------- --------- --------- 1.8 percent 2.6 percent 25 percent Under 1.8 percent 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Reduction --------- --------- --------- 2.4 percent 2.7 percent 25 percent 2.7 percent and over 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Increase --------- --------- --------- 1.8 percent 2.1 percent 25 percent Under 1.8 percent 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Reduction --------- --------- --------- 2.4 percent 2.7 percent 25 percent 2.7 percent and over 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Increase --------- --------- --------- 1.8 percent 2.0 percent 25 percent Under 1.8 percent 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Reduction --------- --------- --------- 2.4 percent 2.7 percent 25 percent 2.7 percent and over 50 percent

If the State-wide Reserve Ratio: Equals But Is Overall or Exceeds Less Than Increase --------- --------- --------- 1.5 percent 1.7 percent 25 percent 1.25 percent 1.5 percent 50 percent 0.75 percent 1.25 percent 75 percent Under 0.75 percent 100 percent

(Code 1981, §34-8-156, enacted by Ga. L. 1991, p. 139, § 1; Ga. L. 1994, p. 640, § 2; Ga. L. 1996, p. 670, § 2; Ga. L. 1997, p. 831, § 1; Ga. L. 1998, p. 1501, §§ 3, 4, 5; Ga. L. 1999, p. 449, § 4; Ga. L. 1999, p. 521, § 4; Ga. L. 2002, p. 1119, § 5; Ga. L. 2003, p. 362, § 1; Ga. L. 2004, p. 1074, § 2; Ga. L. 2005, p. 1200, § 5/HB 520; Ga. L. 2006, p. 877, § 1/HB 1326; Ga. L. 2007, p. 394, § 2/HB 443; Ga. L. 2008, p. 324, § 34/SB 455; Ga. L. 2009, p. 139, § 3/HB 581; Ga. L. 2011, p. 390, § 3/HB 292; Ga. L. 2012, p. 950, § 2/HB 347.)

Editor's notes.

- Ga. L. 1999, p. 449, § 1, and Ga. L. 1999, p. 521, § 1, not codified by the General Assembly, provides that: "This Act shall be known and may be cited as the 'Workforce Reinvestment Act of 1999'."

Ga. L. 2002, p. 1119, § 1, not codified by the General Assembly, provides that: "This Act shall be known and may be cited as the 'Employment Security and Enhancement Act of 2002'."

Ga. L. 2009, p. 139, § 1/HB 581, not codified by the General Assembly, provides that: "This Act shall be known and may be cited as the 'Georgia Works Job Creation and Protection Act of 2009.'"

U.S. Code.

- Section 903 of the federal Social Security Act, referred to in subsection (a), is codified as 42 U.S.C. § 1103.

Law reviews.

- For survey article on labor and employment law for the period from June 1, 2002 to May 31, 2003, see 55 Mercer L. Rev. 303 (2003). For annual survey of labor and employment law, see 57 Mercer L. Rev. 251 (2005). For article on the 2012 amendment of this Code section, see 29 Ga. St. U.L. Rev. 92 (2012).

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This Georgia Code resource is curated by Graham W. Syfert, a personal injury and workers' compensation attorney admitted in Georgia (State Bar of Georgia No. 881027, since 2006) and Florida. Attorney Syfert regularly works with Title 34 in the context of Georgia workers' compensation and represents clients throughout Northeast Florida and South Georgia. For legal consultation, call 904-383-7448.