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.
On this page, you’ll learn about the following:
- Hiring Employees in Georgia
- Can an LLC Hire Employees?
- Laws Relating to Wages of Employees
- Georgia Employee Rights
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.
- 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.
- 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.
- 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.
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.
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.
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
Setting up an LLC is an essential step for any new business owner, and a fast way to hire employees is critical to a successful business. The first step to hiring is to obtain a state tax identification number and federal employer identification number, which takes about 20 minutes each. Once your business has one of these numbers, you can start hiring employees quickly and easily. To ensure compliance with state laws, consider hiring a registered agent.
First, get a business identification number (EIN) from the state of Georgia. This will help you avoid paying tax as an individual, as your income tax is distributed to you personally. You must register with the Georgia Workforce Commission, too, and it’s easy to do in 20 minutes or less. You’ll need this EIN when you start hiring employees, because it’s required by law to collect this tax from employees.
Next, file employment eligibility forms and posters with the state of Georgia. Remember that these documents are required by law, so be sure to check with your state’s labor office for current laws. You’ll want to make sure to show these posters to all of your prospective employees. After all, the state of Georgia has a minimum wage of $7.25 per hour, and it’s also required by law for new businesses to follow these laws.
Finally, you need to file your annual report with the state of Georgia. Failure to file the annual report on time will result in a $25 late fee. If you don’t file your annual report with the state, you’ll be forced to dissolve your LLC in two years. For more information, visit the Georgia Department of Labor. Finally, remember to pay your employees. As much as you can, pay them as much as they’re worth – it’s better to pay them twice monthly than one month.
An LLC is a business entity that can be treated as either a corporation, a partnership, or a sole owner business.
The owners of the company are not personally liable for the actions of the employees, the LLC is liable for any such actions.
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.
LLC members, or LLC owners, are self-employed according to the IRS because they pay themselves through the earnings of LLC.
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.