Georgia Salary Paycheck Calculator
Are Georgia payroll taxes on your mind? If you’re like most Georgia business owners, they are. Having James Brown serenade you with “Georgia On My Mind” may ease your payroll tax anxiety. So will reading the answers to the most frequently asked questions about Georgia payroll taxes and payroll processing. It’s a good substitute for a serenade. You’ll walk away feeling confident and maybe even whistling a tune!
Georgia payroll taxes
Does Georgia tax personal income?
Yes. Georgia has a progressive tax system for taxing personal income. It means tax rates get progressively higher as income increases, just like the federal income tax.
For 2022, Georgia’s top personal income tax rate is 5.75%.
How does a Georgia employer calculate the amount of tax to withhold from employees’ paychecks?
While the amount of tax to withhold is based on several factors, information on Form G-4, Employee’s Withholding Allowance Certificate, holds the key. Employees should complete Form G-4 when they begin work and update it whenever they have a life event that may affect their tax liability.
With the information Form G-4 and Georgia’s tax tables, you can calculate the amount of tax to withhold—or you can use payroll software that will quickly and accurately make the calculation for you.
Note that withholding tax is optional for domestic workers and farm laborers.
What does an employer do if an employee doesn’t provide a withholding form?
If an employee doesn’t provide Form G-4, you can try using the federal Form W-4, Employee’s Withholding Certificate, in its place. But if the federal form doesn’t provide enough information, you’ll have to withhold tax as if the employee is single and has zero allowances.
How does a Georgia employer pay the withholding tax?
Generally, payment frequency can be:
- Semi-weekly,
- Monthly,
- Quarterly, or
- Annually.
There is an exception for large payday employers. When withholding exceeds $100,000 for a payday, the tax must be deposited by the next banking day.
For everyone else, your payment frequency depends on the amount of tax owed. And even when no tax is due, you’ll still have to file a Form G-7 stating that no tax was withheld.
Does Georgia collect unemployment tax?
Yes. For 2022, the first $9,500 of an employee’s pay is subject to unemployment tax. Employers pay this tax, not employees.
New employers pay at a 2.7% rate. Once your company has a history of paying unemployment tax and having benefits paid to your former employees, your rate can change each year.
Georgia payroll and employment rules
When does Georgia require employers to have Workers’ Compensation insurance?
Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit. Head to this article and click the workers’ comp audit reports dropdown for more information.
What is the minimum salary threshold in Georgia?
Because Georgia doesn’t have its own minimum salary threshold, the state adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
When a Georgia company hires new employees, do they need to be reported to the state?
Yes. Employers have ten days from the hire date to report new workers to the Georgia New Hire Reporting Center.
Are separation notices required when a Georgia employee is fired or laid off?
Yes. Details of the reasons for letting an employee go need to be provided on the employee’s last day or mailed to their last known address if they are unavailable on their last day.
Federal payroll taxes for Georgia companies
Which federal payroll taxes do Georgia employers need to pay or withhold?
There are four federal payroll taxes Georgia businesses need to focus on, many commonly referred to by their acronym.
| Federal Payroll Taxes for Georgia Companies | ||
| Employer-paid | Employee-paid | Shared |
| FUTA | FIT | FICA |
| Additional Medicare |
How is FUTA tax calculated?
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but most employers only have to pay 0.6% each year.
How is the FICA tax calculated and split between the employee and employer?
FICA tax is made up of Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
How is the Additional Medicare tax calculated?
Unlike FICA tax that is collected from all employees, the Additional Medicare tax is only collected from employees who earn more than $200,000 in a year. The Additional Medicare tax rate for 2022 is 0.9% on the excess wages.
How does a Georgia employer know how much federal income tax (FIT) to withhold from an employee’s pay?
It starts with information from Form W-4. Every employee should complete this form when they start working for you. Using the data from the W-4, tax tables, and the employee’s pay, you can figure out how much tax to withhold.
Based on an employee’s circumstances, they can be exempt from FIT withholding. That will be noted on Form W-4, and it means no withholding calculation is required.
Payroll taxes are a precise science, requiring numerous calculations and strict adherence to deadlines. Comprehensive payroll programs like Gusto make the calculations and compliance smooth sailing.
Disclaimer
The information provided by the Employer Tax Calculator is for general information and estimation. All of the taxes or fees that apply to your business may not be accounted for, or fully up to date. Gusto, Inc. (dba “Gusto”) does not promise or guarantee that the information in the Employer Tax Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct result or an indirect consequence of its use. By using the Employer Tax Calculator, you waive any rights or claims you may have against Gusto in connection with its use.