Payroll Georgia Unique Aspects of Georgia Payroll Law and Practice
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Payroll Georgia: Key Aspects of Georgia Payroll Law and Practice
Overview
Georgia payroll law features unique elements that employers must be aware of, including details on tax withholding and reporting, unemployment insurance, wage and hour laws, and child support withholding.
State Income Tax Withholding
The Georgia Department of Revenue manages state income tax collection and reporting. Employers must use the Georgia Form G-4 for state income tax withholding instead of the federal W-4.
Cafeteria Plans and Retirement Contributions
Georgia's tax laws differ from federal regulations regarding Section 125 cafeteria plans and 401(k) contributions:
- Cafeteria Plans: Not taxable for income tax or unemployment insurance purposes.
- 401(k) Deferrals: Not taxable for income tax but are taxable for unemployment insurance.
Supplemental Wages Taxation
Georgia taxes supplemental wages at a graduated rate:
- Under $8,000: 2.0%
- $8,000?"$10,000: 3.0%
- $10,000?"$12,000: 4.0%
- $12,000?"$15,000: 5.0%
- Over $15,000: 6.0%
Employers with 250 or more employees must file state W-2s via magnetic media.
Unemployment Insurance
Managed by the Georgia Department of Labor, the taxable wage base for unemployment purposes is $8,500. Employers with 100 or more employees must report quarterly wages via magnetic media. Unemployment records must be retained for four years and include:
- Employee name and social security number
- Dates of hire and termination
- Wages by period
- Payroll periods and pay dates
Wage and Hour Laws
The Georgia Department of Labor enforces wage and hour laws. The state minimum wage is $5.15 per hour. There are no specific regulations for non-FLSA overtime, and new hire reporting must be completed within 10 days of hiring. Required information includes:
- Employee and employer details
- Date of birth
- UI ID
Georgia allows compulsory direct deposit as long as it complies with federal regulations, and requires specific information on pay stubs, such as pay rate and hours worked.
Wage Payment and Termination
Employees must be paid at least semi-monthly at regular intervals. There are no specific statutes for the timing of final wage payments upon termination. Wages of deceased employees up to $2,500 must be paid to beneficiaries in a designated order.
Unclaimed wages must be turned over to the state after one year. There are no tip credits against the state minimum wage, and Georgia doesn't mandate rest or meal periods.
Child Support Withholding
The Child Support Enforcement Agency, part of the State Department of Human Resources, regulates child support:
- Withholding: Begins 14 days after mailing the order.
- Payment: Due within two days of payday.
- Termination Notice: Must be sent promptly.
- Administrative Fee: Max of $3 per payment ($25 for initial payment).
- Limits: Follow federal CCPA rules.
Conclusion
Understanding these specifics ensures compliance with Georgia's payroll regulations. Keep in mind that laws can change, so staying updated is vital.
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