Is it illegal if a Georgia employer did not pay unemployment insurance and if so what can be done about it?

Some employers are exempt or under certain conditions are exempt from having to pay employment taxes. See the Related Link below under "How do I know I have to pay unemployment tax" to see the conditions/type of work that is exempt. If your employer does not fall in these categories, you should notify the unemployment securities office for them to check him out. Another section says all employers are to report any new hires to the state.