How to Do Payroll in Georgia

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Georgia is a state in the United States. Payroll tax rates depend on your industry, job description and place of work (city or county). The average employee in Georgia pays about $2,086 for payroll taxes each year. Employees must also file annual reports with their employer to comply with state law.

Georgia withholding tax numbers are issued by the Georgia Department of Revenue. The number is needed for employers to send employees a 1099-MISC form at the end of the year.

In Georgia, paying workers is easier than in more complicated places like California. Employers, like most states, pay state Taxes on income alongside workers. Knowing how to make payroll in Georgia necessitates familiarity with Georgia payroll rules pertaining to workers compensation, state unemployment, and income tax rates.

Consider utilizing payroll software like Gusto if you need assistance completing payroll in Georgia. It takes care of paying and filing federal, state, and local taxes for you. Employees may be paid by cheque or direct deposit at no additional expense. Sign up for a 30-day free trial.

Gusto is a great place to visit.

How to Run Payroll in Georgia: A Step-by-Step Guide

Step 1: Register with the Internal Revenue Service for a Federal Employer Identification Number (FEIN) (IRS). If your business is newly new, you may need to register for a Federal Employer Identification Number (FEIN). This is a straightforward procedure that may be conducted totally online using EFTPS. Keep your FEIN handy if your firm already has one, since it is necessary to pay federal taxes.

Step 2: Get your company registered in Georgia. Any business in Georgia that pays workers must register with the Georgia Secretary of State. The Georgia Department of Revenue has a thorough guide to assist you complete all of the required registration forms, including how to calculate and deduct payroll taxes.

Step 3: Create your first payroll system. This isn’t where you start running payroll; rather, it’s where you start the process of setting it up. There are many methods for calculating payroll, and you must choose the one that is ideal for your company. Payroll software, a calculator, or even Excel may be used.

Collect employee payroll paperwork in step four. Your workers will need to fill out different payroll and employment papers, which is best done during onboarding. On their first day on the job, all workers must undergo I-9 verification. Even if an employee no longer works for the firm, you must retain I-9s on file.

A completed W-4 must also be on file for each employee. Georgia, unlike several other states, needs a W-4 form called the State of Georgia Employee’s Withholding Allowance Certificate. Direct deposit information must also be provided by employees.

Step 5: Go through the time sheets and approve them. Companies keep track of time in a number of ways. You must collect, examine, and approve time sheets, whether they are electronic or paper. Employers in Georgia are required to pay their workers on a regular basis, at least twice a month. As a result, you should start this procedure many days before your planned payment to ensure that you have adequate time. It’s a good idea to have workers sign their time sheets, whether electronically or by pen on paper.

Step 6: Pay your workers after calculating your payroll, which includes taxes. Calculating each employee’s compensation, the taxes they and the firm owe, and the proper deductions and withholdings by hand will be a big effort, particularly if you have a large number of workers. If you utilize a consistent method and payroll software to compute pay automatically, you will be able to simplify your life and decrease errors.

Step 7: Pay federal and state unemployment insurance taxes. You must pay federal and state taxes on each regular payroll run. The Internal Revenue Service (IRS) offers federal tax instructions, while the Georgia Department of Revenue provides state tax instructions.

Step 8: Make a backup of your payroll data. This is one of the most ignored steps, but it is also one of the most crucial. It’s critical to preserve accurate payroll records that verify you’ve paid every employee on time and appropriately, as well as state and federal taxes. The federal government mandates that you keep these documents for three to four years, and Georgia law follows suit for all private enterprises.

In this tutorial on how to conduct payroll, you may learn more about how to do payroll yourself. You can also obtain a free checklist to ensure you don’t miss any tasks.

Payroll Laws, Taxes, and Regulations in Georgia

Payroll processing in Georgia is essentially similar to payroll processing in other states. Because most regulations are based on federal legislation, you’re less likely to be confused by contradictory requirements. Georgia has no extra taxes imposed by towns or cities, further simplifying the procedure.

Payroll Taxes in Georgia

Georgia imposes state taxes on enterprises and workers in addition to federal taxes. Employers and workers must pay the exact amount of tax, which must be calculated and withheld by businesses.

Unemployment Taxes for Employers

Georgia does not have a state-run disability insurance program, although it does have SUTA taxes. On a $9,500 pay basis, the current rate for employers varies from 0.04 percent to 7.56 percent. Every employer in Georgia, with a few exceptions, is required to pay SUTA.

Compensation for Employees

Any Georgia employer with three or more full-time, part-time, or seasonal employees must carry Compensation for Employees insurance coverage. Depending on the industry in which your business operates, your premiums will vary.

Taxes on income

Georgia has a progressive income tax system, which means that the more money an employee earns, the higher their tax bill will be. Georgia’s income tax is divided into six bands, ranging from 1% to 5.75 percent. Make sure you’re withholding the appropriate amount from each of your workers’ paychecks, particularly if their incomes fluctuate over time.

Minimum Wage in Georgia

Georgia’s minimum wage is $7.25 per hour, which is the same as the federal minimum wage. The minimum pay for tipped workers is $2.13 per hour. The shortfall is made up by tips, however if an employee’s tips do not bring them up to the minimum wage of $7.25 per hour, the employer must make up the difference.

Overtime Calculation

Georgia has a time-and-a-half overtime rate. As a result, if an employee is paid minimum wage, any extra hours they perform will be compensated at the rate of $10.88 per hour. Overtime compensation is only required in Georgia if an employee works more than 40 hours in a single workweek.

Employee Remuneration

Employers in Georgia are required to pay their workers at least twice a month. Payroll may now be processed more often. You must have regular and consistent pay days, regardless of your company’s pay schedule. Employers in the agricultural, sawmill, and turpentine sectors are exempt from this obligation and are permitted to pay workers just once a month.

Georgia employers have several options for Employee Remuneration:

For additional information, see our tutorial on how to pay your staff.

Pay Stub Regulations

Businesses in Georgia are not required to furnish pay stubs to their workers. Your company may decide to do so, and if you utilize payroll software, it may even establish one for you.

Download one of our free paystub templates if you’d like a template to make making your own pay statements simpler. You may print and use them right away since they’re already formatted.

Deductions from Georgia Paychecks

Aside from taxes, Georgia does not stipulate what deductions may be made from an employee’s compensation. Due to this uncertainty, employers may be permitted to deduct the following, as long as the employee’s hourly compensation does not fall below the minimum wage:

There is a cash register scarcity.
Property of the employer is damaged or lost.
Fee for uniforms
Fee for tools or equipment
Additional goods required for work

Final Paychecks of Terminated Employees

There is no rule or regulation in Georgia that specifies when or how an employer must pay wages to a recently resigned, laid off, or terminated employee. To be safe, we suggest that you stick to standard payroll procedures and give them their last payment on the next regular payroll run; this is also in compliance with federal requirements.

HR Laws in Georgia That Affect Payroll

Many of Georgia’s human resources and employment legislation are in line with federal guidelines. There are, however, certain extra employment rules and requirements to be aware of in order to keep your organization compliant.

New Hire Reporting in Georgia

Employers are required by law to report all new hires to the New Hire Reporting in Georgia Center. You must do this within 10 days of the employee’s start date. You must report new hires, re-hires, and temporary employees. No business is exempt from this law.

Breaks

Employers in Georgia are not required to give workers with paid or unpaid breaks. Businesses in the state are still compelled to respect federal law, but they have the option of providing additional paid breaks. As a result, employers in Georgia must pay workers for short breaks of five to twenty minutes at a minimum.

Child Labor Laws in Georgia

Workers aged 16 and above are not prohibited from working in Georgia. Employees under the age of sixteen, on the other hand, are limited to working no more than:

On a school day, four hours
On a non-school day, you may work for eight hours.
40 hours during a week when school is not in session

Furthermore, individuals under the age of 16 are not permitted to begin work before 6 a.m. or end work after 9 p.m. During school hours, no employees under the age of 16 are permitted to work.

Requirements for time off and leave

Georgia has no laws governing Paid Vacation (neither does the federal government). During election season, though, you must pay close attention since you are mandated to provide staff time off to vote.

Paid Vacation

Georgia does not have a law requiring employers to offer employees Paid Vacation. Employers are free to create Paid Vacation policies as they see fit for their business.

Sick Leave with Pay

Georgia has no law requiring private employers to give employees Sick Leave with Pay. Employers are able to do so on their own. Public employees in Georgia do get Sick Leave with Pay at a rate of 10 hours of sick leave per month worked.

Voting Is Over

Employers are not required by Georgia law to compensate workers who take time to vote, but they may opt to do so. However, if an employee has provided fair notice and the polls are not open for at least two hours before or after the employee’s shift starts, Georgia requires that employers grant at least two hours of leave to vote.

Family Leave in Georgia

Georgia follows the Family Medical Leave Act (FMLA). The FMLA provides for up to 12 weeks of unpaid leave for employees when they give birth or adopt a child. During these 12 weeks, their job is secure and they may take any Paid Vacation benefits provided by their employer.

Forms for Payroll

Forms for Payroll can vary from state to state. Fortunately, the only state-specific form your employees need to worry about is the Georgia W-4. There are three forms that are applicable to Georgia employers (you’ll likely qualify for two of them):

G-7: For firms filing quarterly tax returns, this form is required and may be submitted online.
DOL-4A: You’ll need it to record quarterly tax and salary reports if you’re a household employer, which means you pay nannies, carers, and other employees who work at your home.
DOL-4N: This form is used to report employee wages, tax information, and account changes on a quarterly basis.

Federal Forms for Payroll

Here is a complete list and location of all the federal Forms for Payroll you should need:

W-4 Form: Provides information on employee withholdings so you can properly calculate and withhold federal and state Taxes on income
W-2 Form: This form is used to record each employee’s total yearly pay.
W-3 Form: This form is used to record all workers’ total yearly salaries.
Form 940 is used to compute and submit unpaid unemployment taxes to the Internal Revenue Service (IRS).
Form 941 is used to submit quarterly income tax returns.
Form 944 is used to submit yearly income tax returns.
Non-employee contract work 1099 forms: Provides information for non-employee contract work.

Payroll Tax Resources in Georgia

Conclusion

At first appearance, learning how to perform payroll in Georgia may seem difficult. The state, on the other hand, adheres to federal standards quite closely, so you’ll only have to deal with a few state-specific paperwork. Once you’ve verified that your company is properly registered, doing payroll on a regular basis becomes second nature. You can ensure that your Georgia payroll is correct every time by staying current with ever-changing employment rules and regulations.

Consider adopting payroll software like Gusto to help you stay on top of new rules and cover every stage of the payroll process. Gusto assists you in filing correctly and on time, pays workers through free direct deposit, and provides health insurance benefits. It will even cover the costs if its representatives make a mistake and you are fined. For 30 days, you may try it for free.