- Office
- Georgia Department of Labor, Employer Accounts section
- Filing
- An employer status report, which asks about acquisitions and other ownership changes, plus a final payroll report
- When
- Report the change promptly after closing, and file the last quarterly report on time
Watch for: Letting the account sit open with no wages. Reports keep coming due and penalties can pile up on a company that no longer has staff.
Why the Labor Department Matters in a Sale
Georgia employers pay unemployment insurance tax through an account with the Department of Labor. When a business changes hands, the department wants to know who now employs the workers.
The department's employer status report asks whether a business acquired or merged with another and whether ownership changed in another way. It also asks for the earlier owner's account number.
What Happens to the Account
When a buyer takes over a business, the department can treat the buyer as a successor, and the old account history may move to the new owner. That history affects the tax rate the buyer pays.
The rules also say the history will not transfer when the buyer acquired the company mainly to get a lower rate. Ask the department how it will treat your sale.
What the Seller Files
- A notice of the sale, so the department knows the business changed hands.
- The last quarterly wage report, covering the final payroll.
- Any tax due, paid before you close the account.
Form names change, so confirm which one applies. The department's employer accounts staff can tell you which form fits an asset sale and which fits a stock sale.
Payroll Tax Is a Revenue Issue Too
Withholding is reported to the Department of Revenue rather than the labor department. A buyer can be responsible for a seller's unpaid withholding, so read tax clearance and successor liability next.
Telling Employees
Staff often hear about a sale before the paperwork is filed. Plan what you say and when. Most buyers want to keep your team, and a smooth handoff helps both sides.
A buyer who offers jobs to your people can usually take over their pay setup on day one. If not, the seller has final pay and accrued time to settle under Georgia and federal rules.
If You Keep Some Staff Until Closing
Keep paying wages and filing reports until the day the buyer takes over. A gap between the seller and the buyer can leave workers uncovered, which creates questions for the department and for the people on your team.
Ask the buyer which employees will be offered jobs, and set a payroll cutoff date in the purchase agreement.
Closing Calendar
Put the labor department on the same checklist as the tax certificate. Our asset sale or stock sale note explains why the structure changes who files what.
This page is general information and not tax or legal advice. Confirm every form, deadline and rate with the department, your CPA or your attorney, then request your valuation when you are ready.