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TL;DR

Navigating Georgia payroll in 2025 means dealing with state income tax (SIT), state unemployment insurance (SUI), wage/hour laws (mostly federal FLSA), new hire reporting, and workers' comp. Key agencies are the GDOL, DOR, and SBWC.

Big changes for 2025: State income tax is a flat 5.29% (down from last year) with a $4,000 dependent exemption. SUI is paid on the first $9,500 of wages per employee, with rates varying by employer. Crucially, all quarterly SUI reports (Form DOL-4N) *must* be filed electronically via the GDOL Employer Portal starting Q1 2025 (due April 30).

Minimum wage follows the federal $7.25/hour for most. Overtime is also per federal FLSA (1.5x pay over 40 hours/week). Georgia requires pay at least semi-monthly. New hires must be reported within 10 days. Workers' comp is mandatory if you have 3+ employees.

Georgia is pushing digital: Get familiar with the DOR's Georgia Tax Center (GTC) for SIT and the GDOL's Employer Portal for SUI. Using these portals is essential for compliance, especially with mandatory SUI e-filing.

Setting Up Payroll in Georgia: Registration and Account Essentials

To run payroll in Georgia, you need to register with federal and state agencies and get specific ID numbers for tax compliance.

Federal Employer Identification Number (FEIN)

First, get a Federal Employer Identification Number (FEIN) from the IRS. It's a unique nine-digit number needed for federal taxes and required before getting state accounts. Apply online via the IRS website.

Georgia Department of Revenue (DOR) Registration

If you pay wages subject to Georgia income tax, register with the DOR for a Georgia Withholding Number. You need this to send in the state income tax you withhold. The format is usually seven numbers then two letters (e.g., 0000000-XX).

Register online using the Georgia Tax Center (GTC). It's usually fast, potentially giving you the number instantly or within minutes via email. For help, call the DOR Business Services Unit at 877-423-6711.

Georgia Department of Labor (GDOL) Registration

If you're liable for State Unemployment Insurance (SUI) tax, register with the GDOL for a GDOL Account Number. It's an eight-digit number (e.g., 000000-00) used for quarterly SUI reports.

You're generally liable for SUI if you meet certain criteria based on your employer type:

• Private Businesses: Employ 1+ worker in 20 different weeks OR have $1,500+ payroll in any quarter.
• Acquiring Businesses: Acquire substantially all of an existing liable GA business.
• Non-Profits (501(c)(3)): Employ 4+ workers in 20 different weeks.
• Agricultural Employers: Employ 10+ workers on any day in 20 different weeks OR have $20,000+ gross payroll in any quarter.
• Domestic Employers: Have $1,000+ payroll in any quarter for work in a private home/club/fraternity/sorority.
• Other Liable Employers: Employee leasing/temp firms, voluntary coverage, FUTA liable employers.

Check these carefully; misinterpreting liability can lead to back taxes.

Most can register online via the GDOL website or Employer Portal for an instant account number. However, non-profits, government agencies, businesses changing structure/merging, or acquiring assets must use the paper Form DOL-1A, which takes longer (up to 30 days). For help, call GDOL Employer Accounts at 404-232-3220 or 404-232-3180.

Locating Existing Account Numbers

Find existing numbers on old tax forms/notices. The GA Withholding Number is often in your GTC account. The GDOL Account Number is usually on old DOL-4N reports or the DOL-626 Tax Rate Notice (check the GDOL Employer Portal). You can also call the agencies.

Third-Party Administrators (TPA) and Payroll Services

If using a payroll service or TPA, ensure they have proper authorization (Power of Attorney or portal access) to file/pay taxes for you.

Using the online GTC and GDOL Employer Portal is crucial now. They're needed for registration, filing, payment, and getting key info like SUI rates. Not adapting, especially with mandatory SUI e-filing, will cause compliance problems.

Georgia Wage and Hour Laws (2025)

Georgia payroll must follow state and federal wage/hour laws, mainly the Fair Labor Standards Act (FLSA).

Minimum Wage

Georgia's minimum is $5.15/hour, but the federal $7.25/hour applies to most employers under the FLSA (businesses with $500,000+ annual revenue or in interstate commerce). So, pay $7.25/hour unless a rare exception applies (e.g., certain student workers at 85%, or very small businesses not covered by FLSA).

Tipped Minimum Wage

Follows federal FLSA rules: Pay a direct wage of $2.13/hour, but tips must bring the total earnings to at least $7.25/hour. If tips fall short, the employer must make up the difference.

Overtime

Georgia follows federal FLSA: Pay non-exempt employees 1.5 times their regular rate for hours worked over 40 in a workweek.

Correctly classifying employees as exempt (salaried executive, administrative, professional, outside sales meeting specific tests) or non-exempt (most hourly workers) is vital. Misclassification leads to unpaid overtime liability. "Comp time" instead of cash overtime is generally only for public sector jobs.

Since Georgia relies heavily on FLSA, understanding federal rules (especially classification and tracking hours) is key.

Pay Frequency

Georgia law (O.C.G.A. § 34-7-2) requires paying most employees at least semi-monthly (twice a month). You can pay more often (weekly, bi-weekly), but not less. Pay periods should be roughly equal.

Exceptions exist (farming, sawmill, certain managers), who might be paid monthly/annually per agreement. Stick to semi-monthly unless an exception clearly applies.

Pay Stub / Statement Requirements

Georgia doesn't mandate pay stubs. However, federal FLSA requires detailed recordkeeping (hours, wages, rate, earnings, deductions, total pay) for non-exempt employees, kept for 3+ years.

Providing pay stubs is best practice for transparency, dispute resolution, and proof of income. Include standard details (employee/employer info, pay period, gross/net pay, deductions). Since there's no state format, ensure stubs match federally required records.

Final Paycheck

No specific Georgia law on final pay timing. Follow federal guidelines: pay final wages by the next regular payday for the period when termination occurred. Remember Georgia is an "employment-at-will" state.

Deductions from Wages

No specific Georgia laws beyond federal rules. Deductions required by law (taxes, garnishments) or authorized by the employee in writing (insurance, retirement) are okay. Deductions benefiting the employer (uniforms, tools, shortages) cannot take pay below minimum wage or cut into required overtime.

Meal and Rest Breaks

Neither Georgia nor federal law requires meal or rest breaks for adults. If offered, short breaks (5-20 min) are typically paid time under FLSA. Bona fide meal periods (30+ min, employee fully relieved of duties) are generally unpaid.

Recordkeeping

FLSA requires records (ID, hours, pay basis, rate, earnings, deductions, total pay) kept for 3+ years. Georgia law (O.C.G.A. § 48-7-111) requires records of total pay kept for 4+ years. Keep all payroll records for at least 4 years to meet both requirements.

State Income Tax (SIT) Withholding - 2025

Georgia employers must withhold state income tax (SIT) from employee wages for work done in GA and send it to the Department of Revenue (DOR).

2025 Tax Rate and Structure

Georgia uses a flat income tax. For 2025, the rate is 5.29%. This applies to all taxable income levels. It's lower than 2024's 5.39% rate, part of a plan to eventually reach 4.99%.

Employee Withholding Form (G-4)

Get a completed Form G-4, Employee's Withholding Allowance Certificate, from each employee. They declare marital status, allowances (dependents, deductions), and any extra withholding. Use the latest G-4 to calculate withholding. Find the form on the DOR website.

Calculation Methods

The official Georgia Employer's Tax Guide (updated annually) gives calculation methods:

• Method A (Wage Bracket): Use tables in the guide based on pay frequency, filing status, and G-4 allowances.
• Method B (Percentage): Calculate directly using the 5.29% rate, adjusted for allowances and standard deductions based on status/frequency.

Always use the official 2025 guide for exact tables, values, and steps.

2025 Exemptions and Deductions

For 2025 withholding, key figures are:

• Standard Deduction: $12,000 (Single, HOH, MFS).
• Standard Deduction: $24,000 (MFJ).
• Dependent Exemption: $4,000 per eligible dependent.

These reduce income subject to the 5.29% tax. (Old age/blindness deductions are gone). Accurate withholding depends on correctly applying these 2025 values. Update payroll systems.

Deposit Schedules and Payment Methods

Deposit frequency depends on total amount withheld:

• Annual: $800 or less total yearly withholding? Pay by Jan 31 of next year.
• Quarterly: Monthly withholding consistently $200 or less? Pay by last day of month after quarter ends.
• Monthly: Total yearly withholding $50,000 or less (but more than quarterly threshold)? Pay by 15th of next month.
• Semi-Weekly: Total yearly withholding over $50,000? Pay W/Th/F withholdings by next Wednesday; Sa/Su/M/Tu withholdings by next Friday.

Important: If you withhold $500+ in a single return period, you *must* pay via Electronic Funds Transfer (EFT) through the Georgia Tax Center (GTC). This also requires filing returns electronically.

If not required to use EFT (smaller amounts), you can potentially mail a check with voucher (Form GA-V). But using GTC is recommended. Monitor withholding amounts to use the correct method/frequency.

Reporting Requirements

File periodic withholding returns (Form G-7) with DOR, usually matching your deposit frequency (monthly/quarterly). Annually, file Form G-1003 (transmitting W-2s/1099s showing GA info) by Jan 31 of next year. Electronic filing via GTC is required if paying by EFT, recommended for all.

Penalties

Late deposits face penalties: $25 + 5% interest per month (max 25%). File and pay on time.

Table 1: Georgia 2025 State Income Tax (SIT) Summary

State Unemployment Insurance (SUI) Tax - 2025

Georgia's SUI program helps jobless workers. It's funded solely by employer SUI taxes (not deducted from employee wages).

Employer Liability

As noted in registration, SUI liability depends on employee count, time, payroll, and organization type. Liable employers must register with GDOL.

Taxable Wage Base

For 2025, GA employers pay SUI tax on the first $9,500 of each employee's wages for the year. After an employee hits $9,500, no more SUI tax is due on their wages that year.

2025 Tax Rates

SUI rates vary:

• New Employers: Assigned a standard rate initially. Don't use old rates (like 2.64% or 2.70%); get your official 2025 rate from the Tax Rate Notice (Form DOL-626) on the GDOL Employer Portal. Check your notice for any admin fees (previous 0.06% fee was 0% in 2023).
• Experienced Employers: Rate calculated annually based on your "experience rating" (claims history vs. payroll). Fewer claims = lower rate. For 2025, rates range from 0.04% to 8.1%. Get your specific rate from the DOL-626 notice via the GDOL Employer Portal. You might lower your rate by making voluntary contributions within 30 days of the notice date.

The huge rate range (0.04% to 8.1%) shows managing unemployment claims significantly impacts SUI costs.

Calculation

Quarterly SUI tax per employee = Taxable wages for the quarter (up to $9,500 annual cap) * Employer's SUI rate. Max SUI tax per employee in 2025 could be $769.50 ($9,500 * 8.1%).

Reporting and Payments

File Form DOL-4N (Quarterly Tax and Wage Report) each quarter, listing total and taxable SUI wages. Due dates:

• Q1 (Jan-Mar): April 30
• Q2 (Apr-Jun): July 31
• Q3 (Jul-Sep): October 31
• Q4 (Oct-Dec): Jan 31 (next year)

Deadline shifts to next business day if it falls on weekend/holiday. File even if no wages paid. If quarterly tax is $5.00 or less, you might defer payment to Jan 31. Domestic employers file annually (Form DOL-4A) by Jan 31.

Mandatory Electronic Filing (Effective Q1 2025)

CRITICAL: Starting with Q1 2025 report (due Apr 30, 2025), all employers *must* file Form DOL-4N electronically via the GDOL Employer Portal. No more paper reports.

This means all liable employers must register and use the portal for filing, payments, rates, history, claims info, etc. Find help guides on the portal login page. Plan for this change now.

Penalties

Late reports: Penalty of $20 or 0.05% of gross payroll per month late. Late payments: Interest at 1.5% per month until paid.

Table 2: Georgia 2025 State Unemployment Insurance (SUI) Tax Summary

New Hire Reporting

Besides taxes, Georgia employers must report new and rehired employees quickly. This helps enforce child support orders (required by state law O.C.G.A. § 19-11-9.2 and federal PRWORA).

Who Must Be Reported

All GA employers must report:

• New Hires: Anyone hired (full-time, part-time, temp), even if they work only one day.
• Rehires/Recalls: Employees returning after separation (layoff, furlough, leave, termination) or a break in service/pay (seasonal, subs).
• Temp Agency Employees: Staffing agencies report temps upon initial assignment (unless there's a later break needing rehire reporting).

No general employer exemptions.

Reporting Deadline

Submit reports within 10 calendar days of hire date (first day worked for wages) or rehire/return date. (Electronic/magnetic media filers have a slightly different schedule: two monthly transmissions, max 16 days apart). Be prompt!

Required Information

Each report needs:

• Employer Info (Required):
  • FEIN (match quarterly wage report FEIN).
  • Employer Legal Name.
  • Employer Address (where income withholding orders go).

• Employee Info (Required):
  • Full Name (First, Middle, Last).
  • Mailing Address.
  • Social Security Number (SSN).
  • Date of Hire.
  • State of Hire (only if reporting multistate).

Optional: Employer phone/fax/email/contact, employee DOB.

Accurate SSN and name are crucial.

Reporting Methods and Destination

Report to the Georgia New Hire Reporting Center (run by Dept. of Human Services, Child Support Division). Options:

• Electronic Reporting:
  • Online Portal: Register & submit via ga-newhire.com (most efficient).
  • File Upload/FTP: Upload formatted files via website or FTP.
• Non-Electronic Reporting:
  • Printed List: Mail/fax a computer list (10pt+ font) with all required info.
  • Paper Form: Download, complete, mail/fax form from website.
  • Copy of W-4: Mail/fax legible copy (add employer name/FEIN/address clearly on top).
• Payroll Service: Arrange for your provider to report for you.

Non-electronic reports go to:

• Mail: Georgia New Hire Reporting Center, P.O. Box 3068, Trenton, NJ 08619
• Fax: (404) 525-2983 or Toll-free: (888) 541-0521

Questions? Call Help Desk: (404) 525-2985 or toll-free (888) 541-0469.

Build new hire reporting into your onboarding process to meet the 10-day deadline.

Workers' Compensation Insurance

Workers' comp covers employees injured on the job. Georgia law requires it for most employers (overseen by State Board of Workers' Compensation - SBWC).

Mandatory Coverage Requirement

Required if you employ 3 or more workers (full-time, part-time, seasonal count). For Corps/LLCs, officers/members count towards the 3, even if they opt out of benefits.

Purpose and Benefits

Employer-funded insurance covering costs of workplace injuries/illnesses. Benefits can include:

• Payment for authorized medical care.
• Necessary medical travel costs.
• Medical/vocational rehab.
• Income replacement (usually 2/3 average weekly wage, up to limits) if off work past waiting period (usually 7 days).

Helps employees recover/return to work; provides dependent benefits for fatal incidents.

Coverage Verification

Anyone can check if a GA employer has coverage using the online tool on the SBWC website (sbwc.georgia.gov). It uses SBWC enforcement records.

Reporting Injuries and Claims

Employees must report work injuries to employer ASAP (within 30 days max, or risk losing benefits).

Employers must report injuries to their insurance carrier, usually using Form WC-1. Report promptly.

Drug-Free Workplace Program Discount

SBWC offers a Drug-Free Workplace Program. Meet requirements (policy, testing, education, assistance info) & get SBWC certified.

Certified employers get a 7.5% discount on workers' comp premiums. Give certificate copy to insurer annually (or attach to payroll report if self-insured). Lowers costs, promotes safety.

Penalties for Non-Compliance

Failure to have required coverage leads to big penalties (up to $5,000 civil penalty per violation, possible criminal charges). Stay covered.

Questions? Contact SBWC: 404-656-3818 or 1-800-533-0682.

Key 2025 Updates and Legislative Watch

Keep up with changes for compliance. Here are 2025 confirmed updates and things to watch.

Confirmed 2025 Changes

• SIT Rate Cut: Flat personal income tax rate drops to 5.29%. Use for withholding from Jan 1, 2025.
• Corporate Rate Cut: Also drops to 5.29%.
• Higher Dependent Exemption: Rises to $4,000 (from $3,000). Affects withholding calcs.
• Standard Deductions (Same): Still $12,000 (Single/MFS/HOH) and $24,000 (MFJ).
• Mandatory SUI E-Filing: Quarterly SUI reports (DOL-4N) MUST be filed via GDOL Employer Portal starting Q1 2025 (due Apr 30). No paper.
• UI Digital Notices (SB 191): GDOL can send UI decisions/appeals digitally. Appeal window starts from digital issue date, not mail date.

Legislative Watch: House Bill 375 - Overtime Tax Exemption

Keep an eye on House Bill 375 (HB 375).

• Proposal: Aims to make certain overtime pay non-taxable for state income tax (full-time hourly over 40 hrs/week, FLSA overtime).
• Status: Introduced Feb 2025, sent to committee. Track its progress.
• Effective Date: If passed as written, applies to tax years starting Jan 1, 2026 *or later*.
• Impact on 2025: None. Treat overtime as taxable in 2025.
• Future Impact: If passed for a future year, could affect employee behavior (incentive for OT/claims) and require new employer reporting to DOR on exempt OT paid. Monitor, but don't change 2025 practices yet. (Alabama did something similar temporarily).

Other Potential Changes

Watch for admin updates from GDOL, DOR, SBWC (form changes, portal updates, rule clarifications). Check agency websites and sign up for alerts (like DOR alerts).

Main 2025 changes are tax rate cuts and mandatory SUI e-filing. The OT tax exemption is for the future, if it happens.

Compliance, Recordkeeping, and Best Practices

Staying compliant in Georgia requires diligence, good records, and using state tools.

Record Retention

Keep detailed payroll records. Federal FLSA requires 3+ years. Georgia requires 4+ years for total pay records (O.C.G.A. § 48-7-111). Keep everything for at least 4 years.

Utilize State Online Portals

Master these portals:

• GTC (DOR): For SIT registration, filing (G-7, G-1003), EFT payments, account management. (gtc.dor.ga.gov)
• GDOL Employer Portal: Mandatory for SUI quarterly filing (DOL-4N) & payments. Get SUI rate notices (DOL-626), manage account, claims. (Access via dol.georgia.gov)

Using these is required now, especially with mandatory SUI e-filing.

Accuracy and Timeliness

Avoid costly errors. Calculate wages, OT, taxes accurately. Meet all deposit and filing deadlines for SIT/SUI to avoid penalties/interest. Use checks, good software, compliance calendar.

Employee Classification

Classify workers correctly (employee vs. independent contractor; exempt vs. non-exempt under FLSA). Misclassification causes major liability (back taxes, unpaid OT). Review state/federal tests; consult experts if unsure.

Stay Informed

Laws change. Regularly check GDOL, DOR, SBWC websites for updates, new guides (like Employer's Tax Guide), forms. Sign up for agency email alerts.

Internal Audits

Periodically audit your payroll processes (calcs, withholding, deductions, records, reporting) to catch issues early.

Consult Experts

For complex situations (multi-state, tricky rules), get advice from payroll pros, accountants, or employment lawyers.

Proactive compliance in 2025 means good records, using digital tools, and staying updated.

Conclusion and Resource Directory

Manage 2025 Georgia payroll by handling SIT (5.29% flat rate, $4,000 dependent exemption), SUI (pay on first $9,500 wages, use your rate, file electronically via portal), wage/hour laws (FLSA minimum wage/OT, semi-monthly pay), new hire reporting (10 days), and workers' comp (3+ employees).

Accuracy, timeliness, proper classification, good records, and using GTC/GDOL portals are key. Watch for legislative changes (like potential OT tax exemption, but not effective for 2025).

Key Agency Contacts

Georgia Department of Labor (GDOL)

• Purpose: SUI, Employer Portal, Wage/Hour Info, SUI Registration/Reporting.
• Website: dol.georgia.gov
• Employer Accounts/UI Tax: 404-232-3220, 404-232-3180, Toll-Free: 855-436-7365
• General Info: 404-232-3000 / 404-232-3001

Georgia Department of Revenue (DOR)

• Purpose: SIT Withholding, GTC Portal, Withholding Number, Tax Forms, Employer Guide.
• Website: dor.georgia.gov
• Taxpayer Services/Withholding Help: 877-423-6711

Georgia State Board of Workers' Compensation (SBWC)

• Purpose: Workers' Comp Rules/Verification, Injury Reports, Drug-Free Program.
• Website: sbwc.georgia.gov
• Phone: 404-656-3818, Toll-Free: 800-533-0682

Georgia New Hire Reporting Center

• Purpose: Receiving new/rehire reports.
• Website: ga-newhire.com
• Phone: 404-525-2985, Toll-Free: 888-541-0469
• Fax: 404-525-2983, Toll-Free Fax: 888-541-0521

Internal Revenue Service (IRS)

• Purpose: FEIN, Federal Taxes (Income Withholding, FICA, FUTA).
• Website: irs.gov
• Phone: 800-829-1040

U.S. Department of Labor (USDOL)

• Purpose: FLSA Info (Min Wage, OT, Records), Federal Labor Laws.
• Website: dol.gov
• Phone: 866-487-2365

Table 3: Key Georgia Payroll Forms and Resources

Table 4: Georgia Payroll Compliance Calendar - Key 2025 Deadlines

Sources & Further Reading