Georgia Payroll, Unique Aspects of Georgia Payroll Law and Practice

The Georgia State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:

revenue Department

Withholding Tax Unit

504 Trinity-Washington Building.

270 Washington Street

Atlanta, Georgia 30334

404-417-2311

[http://www.etax.dor.ga.gov/withholding.shtml]

Georgia requires that you use the Georgia form “G-4, Employee’s Withholding Certificate” instead of a federal form W-4 for Georgia state income tax withholding.

Not all states allow salary reductions made under Section 125 or 401(k) cafeteria plans to be treated in the same manner as the IRS code allows. In Georgia, cafeteria plans: are not taxable for income tax purposes; not taxable for unemployment insurance purposes. 401(k) plan deferrals are: not subject to income taxes; taxable for unemployment purposes.

In Georgia, supplemental wages are taxed or at a graduated rate

Annual salary rate

Less than $8,000.00 2.0%

$8,000.00 to $10,000.00 3.0%

$10,000.00 to $12,000.00 4.0%

$12,000.00 to $15,000.00 5.0%

more than $15,000.00 6.0%

You must file your Georgia W-2 forms magnetically if you have at least 250 employees.

The Georgia State Unemployment Insurance Agency is:

Georgia Department of Labor

Unemployment Insurance Division

148 International Blvd., NE

Atlanta, GA 30303-1751

404-656-3122

http://www.dol.state.ga.us/em/

The state of Georgia taxable wage base for unemployment purposes is wages up to $8,500.00.

Georgia requires magnetic media reporting of quarterly wage reports if the employer has at least 100 employees who are reporting that quarter.

Unemployment records must be kept in Georgia for a minimum period of four years. This information generally includes: name; Social Security number; hire, retirement and termination dates; wages per period; payroll periods and payment dates; termination date and circumstances.

The Georgia State Agency charged with enforcing state wage and hour laws is:

work Department

148 International Blvd., NE, Ste. 276

Atlanta, GA 30303-1751

866-487-9243

http://www.dol.state.ga.us/

The minimum wage in Georgia is $5.15 per hour.

There is also no general provision in Georgia State Law that covers overtime pay at an employer not covered by the FLSA.

The state of Georgia’s new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the elements required by the federal government of:

• Name of the employee
• employee address
• Employee Social Security Number
• Name of the employee
• Employee Address
• Employer Federal Employer Identification Number (EIN)

Plus

• Date of Birth
• UBI ID No. User Interface ID No.

This information must be reported within 10 days of hire or rehire.

Information can be submitted as W4 or equivalent by mail, fax or electronically.

There is a written warning for a late report in Georgia.

You can contact the Georgia New Hire Reporting Agency by calling 888-541-0469 / 404-525-2985 or on the web at https://newhirereporting.com/ga-neshire/default.asp.

Georgia allows mandatory direct deposit, but the employee’s choice of financial institution must comply with federal Regulation E regarding choice of financial institutions.

Georgia requires the following information on an employee’s pay stub:

• Use
• pay rate
• hours worked
• item deductions

Georgia requires that employees be paid no less than twice a month and at regular intervals. There is an exemption for officers, superintendents, and department heads.

There are no legal requirements in Georgia regarding the time lag between the time services are performed and the time the employee is due to be paid.

Georgia does not have a general provision for when laid-off employees must receive their final wages.

The deceased employee’s wages up to $2,500.00 must be paid to the designated beneficiary, surviving spouse, or guardian of the children (in that order).

Reversion laws in Georgia require that unclaimed wages be paid to the state after one year.

In addition, California requires the employer to keep a record of wages abandoned and turned over to the state for a period of ten years.

There is no provision in Georgia law regarding tip credits against the state minimum wage.

There is no provision in Georgia payroll law that covers required meal or rest periods.

There is no provision in Georgia law for the retention of wage and hour records, so it is probably wise to follow the FLSA guidelines.

The Georgia agency charged with enforcing child support laws and orders is:

Child Support Enforcement

State Department of Human Resources

2 Peachtree St., 15th floor of NO.

404-657-3851

http://ocse.dhr.georgia.gov/portal/site/DHR-OCSE/

Georgia has the following provisions for child support deductions:

• When to start withholding? 14 days after shipment of the order
• When to send the payment? Two days of payday.
• When to send a termination notice? “Promptly”
• Maximum administrative fee? $3 per payment ($25 for the first).
• Retention limits? Federal Rules under CCPA.

Please note that this article is not updated for changes that may and will occur from time to time.