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Updated: January 12, 2024
Over 5.3 million people are in Georgia’s labor force, which means employers have their hands full when it comes to payroll taxes. The good news is that the Georgia payroll calculator at the top of this page eliminates all the extra clutter associated with calculating payroll and employee paychecks. All you have to do is enter wage and W-4 information for each employee, and our calculator will process your employees’ gross pay, net pay, and deductions for Georgia and Federal taxes.
Federal Payroll Taxes for Georgia employers
Here’s a summary of what you need to know when you’re calculating federal payroll taxes. If you would like to see a detailed rundown, head on over to our step-by-step guide for more information.
- Calculate Gross Wages:
- For all your hourly employees, multiply their hours worked by the pay rate. Don’t forget to increase the rate for any overtime hours.
- For all your salaried employees, divide each employee’s annual salary by the number of pay periods you have.
- Calculate Any Pre-Tax Withholdings: If your employees contribute to HSA, 401(k) or other pre-tax withholdings, deduct the appropriate amount from their gross pay before you calculate payroll taxes.
- Deduct Federal Income Taxes: Federal taxes can range anywhere from 0% to 37% of taxable earnings. You can find further withholding information through the IRS website.
- Deduct and match any FICA taxes:
- Social Security tax, which is 6.2% of each employee’s taxable wages up until they reach $168,600 for the year. Employers also have to pay a matching 6.2% tax up to the wage limit.
- Medicare tax, which is 1.45% of each employee’s taxable wages up to $200,000 for the year. For any wages above $200,000, there is an Additional Medicare Tax of 0.9%, which brings the rate to 2.35%. Employers have to pay a matching 1.45% of Medicare tax, but only the employee is responsible for paying the 0.9% Additional Medicare Tax.
- Calculate FUTA Unemployment Tax, which is 6% of the first $7,000 of each employee’s taxable income. Note that if you pay state unemployment taxes in full and on time, you are eligible for a tax credit of up to 5.4%, which brings your effective FUTA tax rate to 0.6%. Only employers are responsible for paying the FUTA tax, not employees.
- Subtract Post-Tax Deductions, which can be anything from court-ordered wage garnishments to child support.
Georgia payroll taxes for 2024
With six different tax brackets, payroll in Georgia is especially progressive, meaning the more your employees make, the more they have to pay. Rates range from 1% to 5.49%.
Though this could definitely be checked off as “complicated,” the rest of Georgia payroll taxes are a breeze. It doesn’t matter if you live in Savannah or Buford or Atlanta, because no city charges a local income tax.
Georgia Unemployment Insurance
Georgia doesn’t have state disability insurance, but it does have unemployment insurance. With a wage base of $9,500 in 2024, unemployment insurance covers those unemployed through no fault of their own. Rates range from 0.04% to 8.1%.
If you’re a new employer, use the standard rate of 2.7%.
New hire reporting in the state of Georgia
Georgia statute 19-11-9.2 and the Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 require all Georgia employers to report all newly hired employees, as well as rehires, to a state directory within 10 days of their hire date. There are no employer exemptions when it comes to new hire reporting. The good news is that the state of Georgia makes it simple through its new hire reporting center.
Maintaining records
The state of Georgia requires employers to keep records of total remuneration (a fancy way of saying the compensation or payment an employee receives for the work they do) for a period of at least four years, per O.C.G.A. 48-7-111 (2010). In addition, you might find our article on payroll record keeping guidelines helpful, which breaks down various federal requirements (as well as tips on how to store files).
Check please!
You’ve almost crossed the finish line. Reached your destination. Spotted the light at the end of the tunnel. Whatever works for you, you’re nearly there. All you have to do after calculating your employee’s net pay is cut those checks. Just make sure you’re setting aside the amount your company needs to pay to avoid any FICA and UI tax fiascos.
Federal tax filings are done by filing Forms 940 (annually) and 941 (quarterly), but deposits can be made on an ongoing basis through the EFTPS payment system. You can learn more about the tax reporting due dates here.
Georgia Payroll Tax Resources:
Just in case you want to learn even more about Georgia payroll taxes, here are a few helpful links.
Georgia Department of Revenue: To put it simply: your new best friend.
Register as an Employer: Or call (404) 232-3301 for more information.
The Department of Labor: Basically the almanac of payroll taxes for all Georgia employers.
Answers to your questions: Unemployment Insurance and laws and regulations…all the things you need to know.
These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.
Do you have employees nearby? These might be helpful.
More helpful payroll calculators
Georgia employers can use the calculator at the top of this page to quickly figure out their employees’ gross pay, net pay, and deductions. But every now and then, employers run into situations that require a bit more finesse. For example, do you have employees who are top performers and reward them with bonuses from time to time? Remember that Uncle Sam considers this type of payment to be supplemental wages (so taxes need to be withheld). What about workers who come and go? There may be times when you need to figure out what their final paycheck will be. So, if you can use a little more help managing the math, check out some of the calculators listed below.