File your Georgia state taxes with confidence using our expertly curated resources. Learn the latest on Georgia payroll taxes, rates, policies, and more, below.
Georgia’s businesses must manage their payrolls per local, state, and federal regulations. In this section, we will outline the payroll process for Georgia-based employers.
Before registering with the state for Georgia payroll, businesses must have a federal Employer Identification Number (EIN) and an Electronic Federal Tax Payment System (EFTPS) account.
The IRS manages the application process for an EIN. To apply digitally for GA payroll, follow the instructions below:
The IRS manages the application process for the EFTPS. To apply digitally for Georgia payroll, follow the instructions below:
After receiving your EIN and EFTPS account, your business can register with the Georgia Secretary of State. Applicants are recommended to submit their registration digitally via the state’s online portal but can also submit via U.S. postal service.
Regardless of the submission method, Georgia businesses are required to provide the following information:
Note: sole proprietorships can register as individuals for business-related taxes for Georgia payroll
To register a business in Georgia, all employers must create a Georgia Tax Center account and submit the appropriate information. Doing so is simple:
While the state of Georgia recommends online registration, employers in the state can register their businesses via mail.
Each type of company will have slightly different registration requirements outlined on the state of Georgia’s website. Regardless of the type of company, however, all forms should be sent to the following address:
Office of Secretary of State
Corporations Division
2 Martin Luther King Jr. Dr. SE
Suite 313 West Tower
Atlanta, Georgia 30334
Use the guides below to learn more about the appropriate procedures, forms, and fees that your business must complete for GA payroll.
Note: in general, businesses can expect a processing time of 15 days. By paying a premium, businesses can expedite the process to 2 days ($100), same day ($250), or within an hour ($1,000).
Each company will have a different payroll structurally, largely influenced by their industry and focus. The main decisions when setting up Georgia payroll are:
Click here to learn more about managing your company’s payroll in-house or with a service.
Typically completed during the onboarding of new hires, businesses must collect the following forms for all employees to be compliant with state and federal requirements:
Note: All employees must complete their I-9 verification no later than their first day of work. I-9 forms must be stored for three years after the hire date, one year after employment ends, or whichever is later.
For hourly and salary non-exempt employees, businesses must collect, review, and approve all timesheets within the appropriate time frame. Timesheets can be digital or paper.
To manage timesheets with ease, businesses can utilize time and attendance solutions such as CAVU HCM.
Combining software and concierge services, CAVU improves the employee experience and eliminates errors without adding extra stress to your operation. Led by experts on all local, state, and federal policies and regulations, CAVU helps manage every part of your payroll process, including yearly filings, time and attendance, tax credit applications, and more.
To review pay period guidelines for Georgia payroll, click here.
To pay employees for their timesheets, businesses must first calculate their payrolls. To calculate your company’s payroll and pay your employees, follow the six steps below:
To manage their payroll, employers must determine how many hours their employees worked in a pay period. How businesses execute this step depends on if an employee is salaried or hourly and non-exempt or exempt. Follow the appropriate step below.
Note: Employers must classify their employees correctly according to the Fair Labor Standards Act (FLSA) or risk costly compliance violations. Misclassifying employees as exempt from overtime (when they are non-exempt) is one of the most common Fair Labor Standards Act (FLSA) violations and a focal point for government enforcement.
An employee exempt from the FLSA typically must be paid a salary above a certain level and work in an administrative, professional, executive, computer, or outside sales role. Generally, salaried employees are expected to work a minimum of 40 hours per week but are exempt from receiving overtime wages.
Due to this dynamic, payroll managers can assume that pay for each period will be the same. Generally, employers do not track their salaried employees' work time.
The U.S. Department of Labor’s online duties test can be used to determine the exemption eligibility of an employee.
If Georgia employees are classified as non-exempt, they are entitled to overtime pay for work that exceeds 40 hours in a work week (consecutive seven-day period). Non-exempt employees can earn a salary or hourly wage.
To calculate the payroll of non-exempt salaried employees, calculate the total work hours for a single pay period, noting overtime hours. The total wages for each employee will be their salary for minimum hours worked plus any overtime wages. Overtime wages should be paid at the employee's salary, broken down into an hourly rate times one-and-one-half.
To calculate the total time worked for a period for an hourly employee, all that is needed is simple math.
Add total hours worked for a given work week using a timesheet or clocked hours.
Regardless of payroll frequency, this should be done weekly for Georgia businesses.
Gross pay is an employee’s total earnings before taxes and deductions. Calculating gross pay is done by multiplying an employee’s hourly rate by their hours worked. For non-exempt employees, work beyond 40 hours in a workweek should be paid at a rate of time and one-half.
Per federal regulations, employers must subtract payroll deductions from gross pay before determining their employees’ total pay. There are pre-tax and post-tax deductions, each with its own requirements.
The most common pre-tax deductions are:
There is an extensive list of pre-tax deductions. Regardless of what you use, all deductions will reduce gross pay.
To calculate the total taxes owed by each employee, employers will need to determine the percentage of income that should be withheld from local, state, and federal income using the employee’s W-4 form.
Below are the types of taxes that will be withheld:
Federal Income Tax (See IRS Withholding Tables)
State Income Tax (See Georgia Withholding Tables)
Social Security (6.2%)
Medicare (1.45%)
Before calculating total taxes, businesses must first account for all pre-tax deductions. Doing so is simple: subtract pre-tax deductions from total gross pay.
Note: there is no local income tax for Georgia payroll.
In addition to calculating the withheld taxes for each employee, businesses are responsible for their own taxes.
The following is a list of payroll-related taxes required for businesses in the state of Georgia:
To calculate an employee’s net pay, subtract total deductions and total taxes from gross income.
Net Pay = Gross Pay - (Non-Tax Deductions + Tax Deductions)
While businesses can choose their payment schedule, they still must follow state guidelines set by GA Statute 34-7-2.
Per the statute, Georgia employers must pay their employees on a defined payment schedule. At a minimum, these payments must occur twice per month, otherwise known as semi-monthly; employers can implement higher pay frequencies at their discretion. Regardless of frequency, pay dates must be consistent.
Paychecks can be distributed via cash, check direct deposit, or payroll card account.
To comply with state and federal regulations, all businesses must file payroll taxes using the appropriate forms. Forms can be submitted by mail or digitally.
For more information on federal or state tax forms, click the appropriate link below:
For additional information, use the resources below.
For assistance on federal forms, employers can contact the IRS at 1-800-829-1040 or http://www.irs.gov.
Georgia State Contact Information |
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Business Taxpayer Hotline |
877-423-6711 |
Taxpayer Email Assistance |
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Internet Address |
Per the Fair Labor Standards Act (FLSA) and Georgia Statute 34-4-5, employers in the state of Georgia are required to record, document, and store employee records. For each employee, the following information is required to be recorded and stored:
The state of Georgia does not have designated requirements for how long private employers must maintain their payroll records. However, private employers must still keep all payroll records for at least three years and maintain records for determining wages for two years, per the FLSA.
By January 31 of each year, employers are required to issue to employees and file W-2s for the previous year. For contractors, businesses should use 1099 forms.
W-2s for each employee are typically completed via payroll software and show important information, including annual earnings, taxes withheld, and other information the employee needs to file their state and federal income tax returns.
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In the state of Georgia, employers required to withhold Federal Income Tax for employee compensation, wages, and salaries must also withhold State Income Tax.
Withholding agents are legally responsible for their appropriate taxes, even if they fail to withhold from their employees.
This section will overview the State of Georgia’s payroll and tax requirements, which all withholding agents must adhere to.
For more information, visit https://dor.georgia.gov/withholding.
Established by the federal government under IRC section 3121(a), the Federal Insurance Contributions Act (FICA) requires all businesses to deduct federal taxes from each paycheck. Unlike individual taxes, FICA is paid by both the employer and employer, typically at a rate of 7.65% of taxable wages to the IRS.
Unless specifically excluded by statute, all forms of payment (cash, check, deposit, etc.) are considered taxable. The same rule applies to types of base pay, such as hourly, weekly, piecework, and more.
While nearly all forms of payment are included in FICA’s policies, the following types of compensation are exempt:
The Social Security Administration establishes the maximum taxable wage for FICA each year.
For 2022, this amount is $147,000, a slight rise from $142,800 in 2021.
Typically, Georgia employers must withhold 5.75% of taxable wages from employee pay, which will be remitted to the state.
To correctly calculate the state income tax withheld, employers must have Form G-4 for each employee. Employers can find their estimated state withholding rate using Form G-4 (Georgia State Employee Withholding) and the withholding tax tables in Georgia’s Tax Guide.
Unemployment Insurance is a form of financial aid that assists eligible workers while they seek new employment. Typically ordered at the state level, the federal government can administer unemployment insurance during periods of crisis, including the COVID-19 pandemic.
Similar to other taxes, all businesses contribute to the funding of unemployment insurance through their tax contributions. For Georgia, the following rules apply to state Unemployment Tax:
In 2022, the Georgia state unemployment insurance (SUI) tax rate will sit at 2.7% for new businesses, with the maximum taxable wage base set at $9,500.
Note: employers are required to post a notice regarding state unemployment claims in a common space for all employees to see, typically using a poster.
Incorrectly classifying a Georgia-based employee can result in penalties or fines on the local, state, and federal levels.
How an employee is classified can change the requirements for the employer. For example, independent contracts are not subject to withholding and unemployment taxes, as opposed to hired employees.
To learn more about classifications and eligibility, click here.
In the state of Georgia, employers can be penalized for failing to appropriately withhold per state guidelines. Detailed by Georgia's Department of Revenue, the following penalties can occur for non-compliant businesses.
Georgia State Withholding Penalties |
||||
Penalty |
What is it? |
Rate |
Maximum |
Statute (O.C.G.A.) |
Failure to File |
Failure to file a return by the due date |
$25 plus 5% of the tax withheld before application of any payments or credits or adjustments, and an additional 5% for each subsequent late month |
$25 plus 25% of the tax withheld before application of any payments or credits or adjustments** |
48-7-126 |
Failure to Pay |
Failure to pay the tax due on the return due date (regardless of whether the return is filed) |
$25 plus 5% of the tax, and an additional 5% for each subsequent late month (Minimum $25) |
$25 plus 25% of the tax withheld before application of any payments or credits or adjustments** |
48-7-126 |
Failure to Withhold |
An employer required to withhold fails to do so |
$10 per employee, quarterly |
$10 per employee, quarterly |
48-7-126 |
Failure to provide W-2s or 1099s to payees by the required time |
An employer required to provide fails to do so (effective for 2019 and later calendar year forms) |
The penalty ranges from $10 to $50 per W-2 or 1099, depending upon how late it is provided |
The maximum depends upon how late it is provided |
48-7-105 |
Failure to file W-2s or 1099s with the Department by the required time |
An employer required to file fails to do so (effective for 2019 and later calendar year forms) |
The penalty ranges from $10 to $50 per W-2 or 1099, depending upon how late it is filed |
The maximum depends upon how late it is filed |
48-7-106 |
Fraudulent Withholding Receipt |
Furnishing false or fraudulent withholding receipt to an employee |
$50 for each receipt |
- |
48-7-126 |
Note: “For each quarter, if at any time the amount of the late filing penalty plus the late payment penalty charged would exceed $25 plus twenty-five (25) percent of the tax withheld before application of any payments or credits or adjustments, the amount necessary to reach this threshold will be assessed and no further late payment penalty or late filing penalty will be assessed.” (Georgia DOR)
Entering 2022, the state of Georgia’s minimum wage is set at $5.15 per hour. With few exceptions, however, Georgia employers must adhere to the federal government’s minimum wage of $7.25 per hour.
While the law sets a minimum compensation rate, there are a few exceptions:
No local municipalities currently have minimum wage standards for private employers above the state and federal minimums.
Notably, in 2017 the city of Atlanta announced a progressive minimum wage increase for city workers. Starting at $13, the minimum wage to $15 at the end of the 2019 fiscal year. This decision positively impacted one-third of city worker employees.
Currently, no federal law requires businesses to provide pay stubs, leaving the regulations to each state.
For Georgia employers, there are no laws requiring them to provide employees any notice of wage information (wages paid, hourly rate, deductions) at the time of employment.
As a result, Georgia employers can disclose wage information at their discretion.
While businesses can choose their payment schedule, they still must follow state guidelines set by GA Statute 34-7-2.
Per the statute, Georgia employers must pay their employees on a defined payment schedule. At a minimum, these payments must occur twice per month, otherwise known as semi-monthly; employers can implement higher pay frequencies at their discretion. Regardless of frequency, pay dates must be consistent.
Officials, superintendents, subhead of divisions, and other executive-level roles may be exempt from this statute, as they may be employed by the month or year with stipulated salaries. Wage roles in farming, sawmill, and turpentine industries are also exempt.
Payment can be made via cash, check, direct deposit, or payroll card.
Outlined by the federal government’s Fair Labor Standards Act, overtime regulations prevent the exploitation of laborers. Georgia does not have overtime regulations at the state level.
Per the FLSA, Georgia overtime law states that all non-exempt employees are entitled to time and one-half pay for any work that occurs after exceeding 40 hours in a workweek. For example, an employee with a base pay of $10.00/hour would be paid an overtime rate of $15.00 per hour.
The following employees may be exempt from overtime regulations, per the FLSA:
Unlike federal law, the Georgia state wage laws do not specify overtime exemptions for highly compensated employees.
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In 1998, state and federal laws began requiring all employers to report all new and rehired employees. For Georgia employers, these reports are sent to the Georgia New Hire Reporting Program.
In the state of Georgia, employers are required to report all new hires within ten calendar days of their start date. Employers must submit new hire reports for all new hires, rehired employees, and temporary workers. In general, any employee that fills a W-4 should be reported.
Georgia does not require reporting for employers hiring Independent Contractors.
There are three methods for reporting new hires in the state of Georgia:
Georgia employers can report their new hires digitally from Georgia New Hire Reporting Center’s online portal.
After registering, employers can submit their new hire reports directly from the portal. For each report, employers must provide all required information on the New Hire Form. For more detailed instructions and info on file transfer options, click here.
There are three methods for non-electric reporting.
Most commonly, businesses can either submit a completed New Hire Reporting Form or W-4 Form to the New Hire Reporting Center.
Alternatively, businesses unable to export new hire information electronically can submit a printed list containing all new hire data. The list should be written in at least 10-point size font, with all required information on the New Hire Reporting Form. On the top of the report, employers must include the employer’s name, Federal Employer Identification Number (FEIN), and address.
Mail Reports To: |
Fax Reports To: |
Georgia New Hire Reporting Center P.O. Box 3068 Trenton, NJ 08619 |
(404) 525-2983 Toll-free: (888) 541-0521 |
Employers using a payroll or accounting service can ask for assistance in reporting their new hires.
Typically, leading services already offer electronic reporting for their customers.
Per the state of Georgia, the following information is required on New Hire Reports:
In the state of Georgia, Paid Time Off (or vacation time) is not required by law, nor is unpaid leave.
An employer may offer paid or unpaid time off as part of their company policy or employment contract but may be lawfully obligated to pay an accrued vacation to employees upon separation.
Employers, however, can implement policies or contract stipulations that deny payment of accrued vacation upon the end of employment. They may also establish policies that disqualify employees from receiving payment for accrued vacation, including not submitting a two-week notice.
In Georgia, employers can also institute a “use-it-or-lose-it” policy, requiring employees to use accrued PTO by a specific date.
Like businesses in every state, employers in Georgia must comply with the federal Family and Medical Leave Act (FMLA).
According to the Family and Medical Leave Act, all employees are eligible to receive 12 weeks of unpaid leave for severe injury or illness, to care for ailing family members, to prepare for a family member’s military service, or to care for newborns or newly adopted children.
Employees are eligible for FMLA-related leave if:
Employees who use FMLA leave are entitled to continue their health insurance while on leave and are entitled to reinstatement upon return.
Employers must adhere to the FMLA if they have at least 50 employees for 20 or more weeks in the current calendar year. The state of Georgia does not have state-specific guidelines.
Neither the state of Georgia nor the federal government has laws requiring private employers to provide paid sick leave for their employees. As a result, employers are allowed to establish their own paid sick leave policies.
However, employers that promise sick pay may be legally obligated to grant it. To ensure no unforeseen obligations, employers should regularly review their stated policies and make changes if necessary.
Paid Sick Leave is guaranteed for public employees, however. Full-time public employees are compensated biweekly and entitled to paid sick leave, with 5 hours earned at the end of each pay period. Full-time public employees compensated monthly earn 10 hours of sick leave per pay period.
Child labor laws have been passed at the state and federal levels to prevent minors' exploitation.
In the state of Georgia, there are no state or federal labor regulations for minors aged 16 and 17.
Minors under 16 are not permitted to work during school hours (private or public) unless said minor has graduated from high school. A minor may also be exempt from this rule if they are excused from school attendance by their school system’s board of education, following the State Board of Education’s regulations and policies.
For minors below 18 in the state of Georgia, employers must have a work permit, also known as an employment certificate. Age certification is not required in the state of Georgia for minors under 18 but is expected to be provided upon request.
The state of Georgia sets working hour restrictions to limit how much a minor can work per day and week. The state of Georgia provides the following guidelines:
In addition to total hours, the state outlines night work restrictions for minors as well:
There are no age restrictions or related requirements for minors in the agricultural industry. No minors under the age of 18 need to acquire an employment certificate. Similarly, there are no specific limits on work hours or night work for minors under 16 working in the agricultural industry.
A work permit is required for children employed in the entertainment industry. The state of Georgia outlines child labor law regulations for the entertainment industry in Georgia Statute 39-2-18.
Below is a comprehensive list of relevant payroll tax forms for the state of Georgia.
2022 Withholding (Payroll) Tax Forms – Georgia |
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Form Name |
Description |
Additional Info |
Employee Withholding |
|
|
Employer Status Report |
|
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Withholding Return |
|
|
Withholding Tax Payment Voucher |
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Form G-1003 |
Income Statement Transmittal |
Filed annually on Feb. 28. |
Form DOL-4N |
Employer’s Quarterly Tax and Wage Report |
Below is a list of the most common requested federal payroll tax forms. For a comprehensive list, click here.
2022 Withholding (Payroll) Tax Forms – Federal |
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Form Name |
Description |
Additional Info |
US Individual Income Tax Return |
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Employee's Withholding Certificate |
|
|
Estimated Tax for Individuals |
|
|
Employer's Quarterly Federal Tax Return |
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Application for Employer Identification Number (EIN) |
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Request for Taxpayer Identification Number (TIN) and Certification |
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Wage and Tax Statement |
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Application for IRS Individual Taxpayer Identification Number |
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Request for Transcript of Tax Return |
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Installment Agreement Request |
For the state of Georgia, withholding tax returns must be filed every quarter.
Employers must file Form G-7 to report their quarterly returns. The following table outlines the due dates for 2022:
FORM G-7 Filing Dates |
|
Quarter |
Due Date |
Q1 (January-March) |
5/02/2022 |
Q2 (April-June) |
8/01/2022 |
Q3 (July-September) |
10/31/2022 |
Q4 (October-December) |
1/13/2023 |
Employers can also submit a Form GA-V Withholding Monthly Payment Voucher monthly. The following table outlines the due dates for 2022:
Form GA-V Filing Dates |
|
Quarter |
Due Date |
January 2022 |
2/15/2022 |
February 2022 |
3/15/2022 |
March 2022 |
4/18/2022 |
April 2022 |
5/16/2022 |
May 2022 |
6/15/2022 |
June 2022 |
7/15/2022 |
July 2022 |
8/15/2022 |
August 2022 |
9/15/2022 |
September 2022 |
10/17/2022 |
October 2022 |
11/15/2022 |
November 2022 |
12/15/2022 |
December 2022 |
1/17/2023 |
In Georgia, Unemployment Tax reports and payments are due a month after the close of each calendar quarter, reports and payments are due by the following dates for the preceding calendar quarter.
GA UI Filing & Payment Due Dates |
|
Quarter |
Due Date |
Q1 (January-March) |
April 30 |
Q2 (April-June) |
July 31 |
Q3 (July-September) |
October 31 |
Q4 (October-December) |
January 31 |