Georgia Immigration Bill Signed by Governor

Georgia governor Sonny Perdue has signed an immigration bill, which includes provisions affecting Georgia employers. The bill requires that public employers and contractors or subcontractors of public employers register in the federal work authorization program (the BASIC pilot program) to verify information of all new employees. The provision is effective July 1, 2007 for public employers, contractors, or subcontractors with 500 or more employees, July 1, 2008 for those with 100 or more employees, and July 1, 2009 for those with fewer than 100 employees.

The law will also prohibit employers from claiming $600 or more of wages paid to any undocumented employee hired on or after January 1, 2008 as a deductible business expense for state income tax purposes. Effective July 1, 2007, employers will be required to withhold state income tax at a rate of 6% from nonresident aliens for whom a 1099 has been filed when the nonresident alien has (1) failed to provide a taxpayer ID number; (2) failed to provide a correct taxpayer ID number; or (3) provided a nonresident taxpayer ID number. Any employer who fails to comply with the withholding requirements is liable for the taxes that should have been withheld. (S.B. 529, Laws 2006, approved April 17, 2006, effective as noted above.)