State Labor Commissioner Michael Thurmond has announced that the majority of Georgia's 200,000 employers will benefit from a $25 million unemployment insurance tax cut in 2006. This tax reduction follows the $50 million cut provided in 2005.

A key factor in maintaining solvency of the state's trust fund and low employer tax rates is the department's focus on returning unemployed claimants back to work as quickly as possible. Georgia has one of the lowest average unemployment insurance claims durations in the nation.

For the 12 months ending September 30 of this year, the average duration of Georgia's unemployment insurance claims was 11.5 weeks, while the national average was 15.3 weeks. By surpassing the national average by 3.8 weeks, the department reduced the need for benefit payments by more than $171 million.

On July 1, 2006, the maximum weekly benefit amount will increase to $320 per week. Along with an emphasis on maintaining low employer taxes, the department has also supported legislation that increased the maximum weekly benefit to the Southeast median. Since 1999, the maximum weekly benefit in Georgia has increased from $244 per week to the present rate of $310 per week which represents a 31 percent increase.

...back to 29 December 2005

Further information:
Thurmond Announces $25 Million Tax Cut for Employers

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