Compilation of Rules and Regulations of the State of Georgia › Department 300 - RULES OF GEORGIA DEPARTMENT OF LABOR › Chapter 300-2 - EMPLOYMENT SECURITY LAW › Subject 300-2-7 - REQUIREMENTS FOR EMPLOYEES AND EMPLOYERS › Rule 300-2-7-.07 - Employee Leasing Companies

Current through Rules and Regulations filed through June 27, 2024
(1) An employee leasing company (or
				professional employer organization) as that term is defined in O.C.G.A. Section
				  34-8-32 shall not be considered a succeeding employer under the provisions of O.C.G.A.
				Section
				  34-8-153 and  O.C.G.A. Section
				  34-8-155 with respect to its clients or customers and shall not acquire the unemployment
				experience history of its clients or customers. The applicable rate of an
				employee leasing company shall be determined solely on its own unemployment
				experience after it became an employee leasing company, subject to the
				provisions of O.C.G.A. Section
				  34-8-153.
(2) An employee leasing company shall post a
				surety bond in the amount of the greater of $10,000.00 or two and seven-tenths
				percent (2.7%) of its taxable payroll for the four (4) calendar quarters ending
				June 30th immediately preceding the effective date
				of the bond to meet the requirements of O.C.G.A. Section
				  34-8-172.
				Such surety bond must be issued by an organization currently licensed and
				authorized to issue such bond in the State of Georgia and renewed on an annual
				basis in an adjusted amount as deemed appropriate. The bond shall cover a
				minimum of one full calendar year and shall also cover the remainder of the
				calendar year in which it is issued. The bond may not include a cancellation
				clause. In lieu of such bond, an employee leasing company may deposit with the
				Commissioner a cash deposit, irrevocable letter of credit or equivalent
				financial securities acceptable to the Commissioner. The cash deposit shall be
				a comparable amount as described above. Any deposit of money shall be retained
				by the Commissioner in an escrow account. Securities shall be in an amount
				equal to the greater of $10,000.00 or two and seven-tenths percent (2.7%) of
				the taxable payroll for the four (4) calendar quarters ending June
				30thimmediately preceding the effective date of the
				election. At the sole discretion of the Commissioner, an adjustment in the
				amount of the bond, cash deposit, irrevocable letter of credit or securities
				may be required upon sixty (60) days prior written notice.
(3) Notwithstanding the foregoing, an
				employee leasing company may post a surety bond, irrevocable letter of credit
				or cash deposit in the amount of $5,000.00 and thereby comply with the
				provisions of this rule if all of the following conditions are met:
(a) The employee leasing company must have
				been a positive reserve employer as that term is used in O.C.G.A. Section
				  34-8-155 for at least four (4) consecutive quarters during the last twelve (12) quarters
				immediately preceding the effective date of the bond;
(b) The employee leasing company has not
				failed during the last twelve (12) quarters immediately preceding the effective
				date of the bond to file timely all required tax and wage reports, including
				all such reports of all predecessor employers; and
(c) The employee leasing company submits
				timely prepayments of unemployment contributions to the department monthly
				attributable to the applicable portion of the employee leasing company's
				taxable wage base of the employee leasing company's payroll for each calendar
				month just completed. This payment is due on the fifteenth (15th) of each
				month.