Easily manage employment in Georgia
Make employment in Georgia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Georgia, all in one easy-to-use platform.
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Payroll management in Georgia
Georgia has a thriving economy driven by industries such as agriculture, manufacturing, logistics, and technology. With a business-friendly tax climate and relatively low labor costs, Georgia is an attractive location for employers. However, businesses must comply with state payroll regulations, including minimum wage requirements, unemployment insurance taxes, and workers’ compensation laws. Understanding these rules ensures compliance and smooth payroll operations.
Payroll breakdown in Georgia
Employers in Georgia must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:
Minimum wage and overtime
- Minimum wage: Georgia’s state minimum wage is $5.15 per hour; however, employers subject to the Fair Labor Standards Act (FLSA) must adhere to the federal minimum wage of $7.25 per hour.
- Overtime rules:
- Georgia follows federal overtime laws, requiring employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 hours in a workweek.
- Georgia does not mandate daily overtime.
State income tax
- Georgia has a graduated income tax system, with rates ranging from 1% to 5.75%, depending on income levels.
- Employers must withhold state income tax and remit it to the Georgia Department of Revenue.
Unemployment insurance (UI) tax
- Employers must contribute to Georgia’s Unemployment Insurance (UI) program, managed by the Georgia Department of Labor (GDOL).
- The wage base for UI tax in Georgia is $9,500.
- UI tax rates vary based on an employer’s experience rating and range from 0.04% to 8.1%.
Workers’ compensation
- Georgia law requires most employers with three or more employees to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
Payroll tax filing and payment deadlines
- Employers must register for a Georgia Withholding Tax Account Number with the Georgia Department of Revenue.
- State withholding tax returns must be filed monthly, quarterly, or annually, depending on employer classification.
- UI tax reports must be submitted quarterly to the Georgia GDOL.
- Payroll tax payments can be made electronically through Georgia Tax Center (GTC).
Quick facts: Important considerations for employers
- Low state minimum wage: Georgia’s state minimum wage is lower than the federal rate but must comply with FLSA standards.
- Final paycheck rules:
- Georgia does not have specific laws governing when a terminated employee must receive their final paycheck; however, best practices align with federal guidelines requiring payment by the next scheduled payday.
- New hire reporting: Employers must report new hires to the Georgia New Hire Reporting Program within 10 days.
- Paid sick leave: Georgia does not mandate paid sick leave, but employers may voluntarily provide this benefit.
- Payroll recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
- Right-to-work state: Georgia is a right-to-work state, meaning employees cannot be required to join or pay dues to a labor union as a condition of employment.
Run payroll in Georgia with Remote
Managing payroll in Georgia requires careful attention to state-specific regulations, including minimum wage compliance, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
To see just how easy global payroll can be, book a demo today.