Hiring Employees in Georgia LLC – Wages, Laws, Compliance Guide


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Any business structure or corporation stands firm on its foundation laid by the employees. An LLC is no exception to this rule. Hiring employees in your LLC comes with some rules, regulations. Before understanding the rules of hiring employees in Georgia LLC, we must understand what an LLC means.

A Limited Liability Company is a business structure that protects the owners from any personal responsibility of the debts or liabilities arising out of the LLC. If an employee action succeeds to liabilities, the owners get the protection against it. LLCs are a combination of the characteristics of a partnership firm & a sole proprietorship. 

Hiring Employees in Georgia

In order to hire employees in Georgia LLC, there are many requirements that a business has to fulfill. One should keep these points in mind while hiring employees in an LLC. These requirements include:

1. Federal & State Employment Posters in Georgia

The employers in Georgia are required to show both Federal & State Employment posters mentioned in Equal Employment Opportunities Act, Americans with Disabilities Act, Fair Labour Standards Act (FLSA),  etc. You should seek professional help to fulfill all the norms or requirements.

2. Federal & State Required Forms

Hiring employees is a lengthier process that involves the filing of different forms & applications. Suppose you wish to hire employees in Georgia. In that case, you must ask your employees to submit the Employment Eligibility Form, the Federal Tax withholding form, the W-4 Form, Workers Compensation Claim Form, Disability Self- Identification Form, U.S. Citizenship and Immigration Services Form, etc. These Legal forms are easy and free to download.

3. Requirements of Georgia New Hire Reporting program

Employers of Business owners are bound by Georgia’s New Hire Reporting Program, under which they have to submit a report consisting:

  • Company Name
  • Company Address
  • Company federal tax ID number
  • Employee’s Name
  • Employee’s Social Security Number
  • Employee’s Address
  • First Day of paid Work

In addition to the forms mentioned above, payments, taxes, tax forms, & requirements, there may be some additional compliance for hiring in Georgia; you must adhere to those norms as well.

Can an LLC Hire Employees?

An LLC or a Limited Liability Company can be regarded as a corporation, partnership, or sole owner business. The owners of the LLC are often referred to as members. Individuals, Corporations &, in some cases, other LLCs can form an LLC as members.

The members form LLCs because of their limited or no liability provided to the owners or members. In the event of liabilities arising out of an employee’s action, the members of the LLC are not personally liable- the LLC is liable for the actionable claim.

Any LLC (even one with a single owner) can hire unlimited employees on wages or salary. (The single-member owner LLC may have different rules and regulations). In addition to the salaried employees, the LLC can appoint Independent contractors for certain tasks on a contract basis. 

Rules to Hire Employees in an LLC in Georgia?

Just like any other business corporation, an LLC is also not immune from certain procedures & rules of hiring. An LLC files many documents & pays a number of taxes to various Government Agencies while hiring employees. Some of the essential rules or steps to hire employees in an LLC are:

  • Federal Employer Identification Number – Every LLC must obtain an Employer Identification Number (EIN) from the Internal Revenue Service. EIN helps report taxes & a few other documents to the IRS.
  • Employee Eligibility Form – It is mandatory for an LLC owner to check if the employee is eligible for employment in the U.S. An LLC has to ask the employees to submit the I-9, Employment Eligibility Verification Form to verify the identity of the employee & to authorize the employment. the I-9 form is a mandatory requirement while hiring an employee.
  • Employee’s Social Security Number – The employee has to have a valid Social Security Number (SSN) to work. LLCs have to ask the new employees to submit their SSN before employment. The SSN is helpful in payment & tax purposes.
  • Setting up a process for collection & payment of the appropriate taxes – There has to be a due process for the employees’ future collection & payment of taxes. This process needs to be set up by the employer (in this case, the LLC)
  • Employee handbook – In the hiring process, one of the crucial elements of hiring paperwork is an Employee Handbook. Although it is not essential in Georgia, it is usually needed as one of the legal documents in many other states. An Employee Handbook consists of a complete list of all the basic rules & policies of the company.
  • Georgia payroll Taxes – An LLC that is running a business with employees or businesses with employees has to pay many federal taxes & state Taxes. Following the rules on payroll taxes is also an essential requirement.  After hiring employees, an LLC is subject to the State Unemployment Compensation Act. Under the said Act, an LLC will have to pay Unemployment tax to the state & to do that; the LLC must register itself with the Georgia Workforce Commission. The process involves simple steps & can be completed in 20 minutes. 
    Payroll taxes also include Federal Income Tax withholding, an employer can withhold money from the employee’s account for the income tax.
  • Workers’ Compensation Insurance An LLC operating in the state of Georgia has to carry workers’ compensation insurance & has to display relevant posters.
  • New Hire Report or Report of the New Employee – An LLC has to
    • Report about hiring the new employees in the form of “Report of New Employee(s)” to the Georgia Workforce Commission within 10 days from the date of hire.
    • Deposit and report federal employment taxes as per the IRS procedures for payroll reporting & payment.

Laws Relating to Wages of Employees

Federal and state employment laws govern the employer-employee relationship in a variety of ways, including salaries and hiring procedures. While federal laws establish a foundation for employee rights, States have their local laws to enforce stricter regulations. The Georgia Employment laws contain the basic salary, payday requirements, certain job restrictions, whistle-blower protections for the employees established by additional legislation.

  1. The basic minimum wage in the State of Georgia is $5.15 per hour. The employees covered under the federal minimum standard wage rate are eligible to receive $7.25 per hour.
  2. The wage laws in the State of Georgia are governed by the Official Code of Georgia (OCGA) at Title 34- Chapter 4 and the Fair Labour Standards Act as the federal legislation.
  3. The Department of Labor Georgia is the authoritative body that enforces the labor regulations in the State.

Structure of The Wages of The Employees

While Georgia’s minimum wage has stayed unchanged since 2014 – $5.15 per hour, the employees covered by the federal Fair Labor Standards Act will instead be paid the federal minimum wage, which is present $7.25 per hour. When an employee is covered by both the state’s minimum wage regulations and the FLSA, the greater of the two applies. We have tried to list the important aspects of the wage structure in Georgia.

Georgia Minimum Wage

The basic minimum wage in Georgia is $5.15 per hour. The exempted employees who are covered under the Fair Labour Standards Act are compensated at the rate of $7.25 per hour.

  • For overtime working hour, the eligible employee shall be compensated at the rate of 1.5 times the regular pay rate of the employee.
  • For tipped employees, the employers may pay such employees at the rate of $2.13 per hour. The employer must make up for the difference amount if the total does not add up to the minimum wage of $7.25 per hour.
  • For Minor Employees, Georgia’s child labour regulations limit the kind of jobs that minors can do, as well as the number of hours and times they can work. Minors below 12 years of age should not be employed in any establishment

Georgia Employee Rights

Here is the set of employee rights in Georgia. To hire an employee in LLC in the state of Georgia, one has to be aware of employee rights in the state.

Right against Discrimination and harassment at Workplace

Georgia has several anti-discriminatory laws that ensure an equitable working environment for the employees. The Age Discrimination Act, Equal Employment for Persons with Disabilities Code prohibit unlawful discrimination and can attract legal actions against violators. The federal legislation, the Civil Rights Act prohibits employers from discriminating between employees based on race, color, gender, sex, origin, disability, etc.

Right to Equal Pay

According to the Georgia Equal Pay for Comparable Work Act (EPEWA), an employer with ten or more employees must pay both males and females the same wage rate for equal work in jobs based on the skills and efforts of the employees.

Time Off and Leaves of Absence

Employees in Georgia are subject to limited restrictions regarding mandated time off and leaves of absence. Jury and witness duty leave; military leave; and other rules are among them.

Workers’ Compensation

In Georgia, employers with 3 or more employees shall provide compensation to their workers in case they sustain any injuries or suffer losses due to such injuries at their workplace.

Health care

In the State of Georgia, under the Georgia law and COBRA, the employers are required to continue the healthcare coverage for 3 months to the employees who lost their coverage during the term of employment.

Health and Safety

Under the Occupational Safety and Health Act, employers need to provide a safe, secure and healthy working environment to their employees.

Final Pay

An employer can pay up to $2,500 in wages owed to an employee in the event of his or her death. Wages must be paid to particular persons in a precise sequence, beginning with the employee’s written beneficiary designation.

How to Hire Employees Fast in Your Georgia LLC

To hire employees for your Georgia LLC you need to verify if the person is eligible to work in the US and then report him/her as ‘new hires’ to the state.

It is exciting to hire your first employee, but you will need to follow the proper procedures to do it legally. This will include hiring the right people, following federal and state rules, and even checking with the local Chamber of Commerce.

Getting an EIN (Employer Identification Number) is a must for all LLCs in Georgia. You can get yours in just a few minutes online. An EIN is a handy tool that will help you file your taxes with the IRS. Also, you should register with the Georgia Tax Center. If you fail to do so, you could end up paying a hefty fine.

The first step in getting your LLC off the ground is to name it. While you can name your company a thousand times, you should choose a name that reflects your company’s mission. Try to incorporate one of the following: an acronym, a word, or a combination of the three.

Putting together an organizational chart is a good idea. It can help you determine what type of workers you’ll need to hire and where they’ll work. A chart also helps you keep track of who is doing what. You may need to buy signage and raw materials, rent a building, or buy a professionally designed website.

Another must-do is to set up a registered office. Your company needs to have a physical address in Georgia. Make sure that the registered office has access to the proper legal documents and can accept mail during regular business hours. You’ll also need a registered agent. Even if you are an owner, you’ll need to have a designated person to receive and deliver important paperwork from the government.

There are a number of tax and regulatory requirements for companies in Georgia. You’ll need to pay certain fees, and you’ll need to do a bit of research. But if you follow the right procedures, you should be able to hire employees in a timely manner.

Adding employees to an LLC is a necessary task if you want to grow your business. Depending on your business model, you’ll likely need a variety of people, from specialty professionals to sales people to support staff. As a part of the process, you’ll need to register your business and make payments on your employee taxes. You’ll also need to purchase health and safety permits, and carry workers’ compensation insurance. Lastly, you’ll need to buy some signage and advertise your business.

For the best experience, make sure you check with the Georgia Secretary of State. They can answer questions about the requirements for setting up an LLC. Their web site also has a plethora of useful information about the legal structures for your LLC. Among the resources available are customizable operating agreement templates.

Once you’ve hired your first employees, you’ll need to know how to handle payroll. These are complicated and ever-changing, so you’ll need to stay on top of the law. To avoid penalties, you’ll need to keep up with your employee’s employment eligibility forms, the proper withholding from their wages, and other obligations.

FAQs

What Is an LLC?

An LLC is a business entity that can be treated as either a corporation, a partnership, or a sole owner business.

Is the LLC liable for damages caused by employees?

The owners of the company are not personally liable for the actions of the employees, the LLC is liable for any such actions.

What is the IRS Form I-9?

Before hiring an employee, under federal law, the business has to verify an employee’s eligibility to work in the United States with the (IRS Form I-9). The business owner also has to make sure the employee has a valid SSN or Social Security Number.

What is LLC self-employment?

LLC members, or LLC owners, are self-employed according to the IRS because they pay themselves through the earnings of LLC.

In Conclusion

All the LLCs with employees are bound by many rules and regulations with reference to wages. It is always advisable to register a registered agent service to understand the laws better. Feel free to share your feedback with us in the comment section below.

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