Georgia Withholding laws & HR compliance analysis

Georgia Withholding: What you need to know

Georgia employers must deduct and withhold state taxes from each employee's wages. Over the course of a year, withholding must be substantially equivalent to the tax due from the employee for that year (GA Stat. Sec. 47-7-101). The amount of each wage payment that is subject to withholding may be determined using wage-bracket tables provided by the Department of Revenue or the percentage method. The percentage method must be used if the employee claims more than 10 allowances. Employees claim state tax exemptions by filing form G-4. If there is no G-4, federal information is generally used. A specified percentage of a bonus payment, which depends on the size of the bonus, must be withheld.
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Withholding applies to:
• Wages of residents wherever they work except if they work in a state that has state income tax withholding
• Wages of nonresidents for income earned in Georgia
Generally, employees who are subject to federal income tax withholding are also subject to state income tax withholding. (Certain agricultural and domestic employees who are exempt from federal withholding are also exempt from state withholding.)
Withholding applies to all wages, including cash payments such as salaries, commissions, and bonuses, as well as the market value of noncash payments such as meals, lodging, and goods. Generally, compensation that is subject to federal withholding is also subject to state withholding. Georgia has adopted the definitions of taxable income in the federal Internal Revenue Code (GA Code Sec. 48-1-2).
All employers must apply for a Georgia withholding number.
Withholding tax remittance schedules in Georgia are similar but not identical to those of ...

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