QuickBooks Blog
A person sitting in front of a laptop computer.
Georgia

Georgia payroll taxes: Your 2025 guide to staying compliant

By QuickBooks
Published on December 19, 2025

Georgia boasts a dynamic and diverse economy, making it a leader in the Southeast. The state has cultivated an attractive business environment that fosters growth and innovation and is host to many industries, including agriculture, film and television production, logistics, and information technology. Home to over 1 million registered businesses, Georgia ranks among the top states for business, consistently drawing investments and talent and furthering its reputation as a commerce and industry hub.

Let’s explore the key aspects of Georgia payroll taxes you need to know to keep your business compliant and your employees satisfied.

Jump to:

What are payroll taxes?

Payroll taxes are taxes based on wages, salaries, or other compensation that both employers and employees must pay. While income taxes are also withheld through payroll, payroll taxes specifically fund programs like Social Security, Medicare, and unemployment insurance.

Understanding Georgia state payroll taxes

When starting a business in Georgia, you'll need to understand both federal and state payroll taxes.

Federal payroll taxes

Payroll taxes are mandatory and encompass both federal and state requirements. 

Federal payroll taxes include:

  • Federal income tax: This is withheld from each employee's paycheck based on their W-4 form and the current IRS tax brackets. You'll be responsible for calculating the correct amount, withholding it, and then sending it to the IRS.
  • Social Security and Medicare taxes: Both of these taxes have a portion paid by the employee and a matching portion paid by you, the employer. For Social Security, the combined rate is 12.4% on the first $176,100 of wages in 2025. For Medicare, it's 2.9% on all wages, with an extra 0.9% for higher earners. You'll withhold the employee's portion and match it.
  • Federal Unemployment Tax (FUTA): This is paid solely by you at a rate of 6% on the first $7,000 of each employee's wages. However, most employers get a 5.4% credit, reducing the rate to 0.6%. The graphic below lists some best practices for managing your FUTA obligations.
Image Alt Text

Georgia state payroll taxes

In addition to federal payroll taxes, Georgia employers must also account for state-specific payroll taxes.

  • Georgia State Income tax (SIT): The individual and corporate income tax in Georgia recently became a flat rate of 5.19% regardless of income. The flat rate will start a 0.1% decline beginning in 2026 and decrease until Georgia’s flat rate becomes 4.99%. 
  • Georgia State Unemployment Insurance (SUI): New employers in the state pay a tax rate of 2.70% on the first $9,500 earned by your employees.

Georgia local payroll taxes

There are no local payroll taxes to withhold in Georgia cities or counties. However, some areas may impose other local taxes that businesses should be aware of. 

  • Check with your local government to find out if your business is subject to any local taxes. Your city or county government directly can provide the most up-to-date information on applicable rates and regulations.
  • Consult a tax professional if you need clarification on local tax requirements or assistance with compliance. An accountant specializing in Georgia payroll taxes can help you identify any local taxes that apply to your business and ensure you meet all your obligations.

Other important tax considerations

Multiple locations

If your business has employees working in multiple cities or counties, you may be subject to different obligations for each location.

Changing rates

Payroll tax rates can change over time, so it's important to stay informed about any updates that may affect your business.

Employer responsibilities for payroll taxes in Georgia

As a Georgia employer, you're responsible for managing a complex array of federal and state payroll taxes, which involves careful calculation, timely withholding, and accurate reporting to various government agencies. Here’s an overview of what you should know. 

Registering for payroll taxes

To successfully register your business for payroll in Georgia, you’ll need to navigate several key agencies. The primary locations to complete your registration include the Georgia Department of Labor for unemployment insurance and the Georgia Department of Revenue to register a new business. 

You can complete registration online via the Georgia Tax Center. You are also required to report all new hires to the Georgia Department of Labor within 10 days of the hire or rehire date. You can report employees online via the Georgia New Hire Reporting Form.

Calculating payroll taxes

Calculating payroll taxes in Georgia is an essential task for both employers and employees. Here are a few options to help you:

  • Check government websites: The Georgia Department of Revenue offers a tax guide for calculating accurate payroll tax withholdings. 
  • Payroll software: Some small business software payroll programs have built-in Georgia tax tables that automate calculations, saving you time and minimizing the chance for errors.
  • Professional services: If you prefer to outsource payroll, a professional payroll service can handle everything for you.

Whichever method you choose, make sure you stay updated on the current tax rates and wage limits, as these can change every year.

Withholding state payroll taxes

Once you've calculated the correct amounts, you'll need to withhold these taxes from your employee’s wages and remit them to the appropriate authorities. Follow Georgia’s state guidelines for withholding and remittance timelines to avoid penalties.

  • Georgia State Income Tax (SIT): The current withholding rate for Georgia is 5.19%. Use the Employee’s Withholding Allowance Certificate (Form G-4) to calculate SIT. Calculate the dependent allowances by multiplying the number of dependents and any additional allowances claimed on the Form G-4 by the applicable amount. Multiply the total number of dependents by the applicable flat tax rate to get the annual Georgia tax withholding. Divide the annual Georgia tax withholding by the number of pay periods in the tax year. 

Example: Multiply a $3,000-per-month salary by the total number of dependents. If there is one dependent, you’d multiply $3,000 by 5.19% = $155.70 to get the state income tax withholding. 

  • Georgia State Unemployment Insurance (SUI): New employers pay a 2.7% UI tax rate for the first $9,500 of each employee’s annual wages. 

Example: If an employee earns $5,000 per month, the employer pays $135 for the first month (2.7% x $5,000), with $4,500 in taxable income left over for the second month. 2.7% x $4,500 is $121.50. The employer will pay $256.50 for the year. 

By applying these calculations to each paycheck, you ensure accurate withholdings and compliance with Georgia requirements.

Remitting state payroll taxes

You can remit your Georgia state payroll taxes, along with your own employer contributions, to the Georgia State Department of Revenue electronically via the Georgia Tax Center. The filing frequency will depend on the size of your payroll. 

Filing payroll tax returns in Georgia

Filing payroll tax returns in Georgia is an essential responsibility for employers to ensure compliance with federal and state laws. This process involves reporting wages, withholding taxes, and remitting payments. Here’s a breakdown of the 2025 requirements: 

Quarterly requirements

Annual requirements

Penalties for late filing or non-compliance and tips for staying organized

There are various penalties if you fail to file and/or fail to pay your payroll tax withholdings. There may be other fees for late filing, including federal penalties for failing to file or pay on time. These tips can help keep you organized:

Set reminders

Mark all payroll deadlines on your calendar, set reminders on your phone or computer, and use task management or payroll software tools to stay on top of due dates. 

Use the Georgia Tax Center for electronic business filings

Take advantage of the Georgia Tax Center to pay electronic payments to the Georgia State Department of Revenue. This streamlined process reduces the risk of errors and delays associated with paper filing. 

Consider payroll software

Invest in reliable payroll software that automatically calculates taxes and reminds you of upcoming deadlines. You’ll minimize calculation mistakes and missed payments.

Outsource payroll

If managing payroll seems overwhelming, consider outsourcing to a reputable payroll service provider. They handle all tax calculations, filings, and payments on your behalf, ensuring compliance.

Seek professional help

If you have any questions or concerns about payroll taxes, don't hesitate to consult with a tax professional or accountant. They can provide expert guidance and help you tackle the complexities of payroll tax compliance.

Image Alt Text

Payroll tax credits and incentives

Georgia offers a variety of tax credits, deductions, and local initiatives designed to incentivize businesses, create jobs, promote diversity, and support specific communities. These incentives can help you save on your tax bill while contributing to positive social and economic impacts. Here are some of the credits and incentives available to Georgia employers:

Job Tax Credit

The Job Tax Credit incentivizes companies to create and retain jobs in Georgia. The credit value ranges from $1,250 to $4,000 per new job per year for five years, depending on the county’s economic tier ranking. New jobs must be in specific industries and designated special zones, like opportunity zones, less developed census tracts, or military zones.

Federal Research and Development (R&D) Payroll Tax Credit

Eligible startups and small businesses can apply up to $500,000 per year of the federal R&D tax credit toward their employer portion of Social Security payroll taxes. This offset supports continued investment in research and innovation during early growth stages.

Federal Unemployment Tax Act (FUTA) Credit

Employers who pay their state unemployment insurance (SUI) taxes on time and in full may receive a FUTA credit of up to 5.4%, reducing the effective federal FUTA rate from 6.0% to 0.6% on the first $7,000 of wages per employee.

Quality Jobs Tax Credit

The Quality Jobs Tax Credit rewards businesses for creating jobs that pay at least 10% higher than average county wages. The credit value ranges from $2,500 to $5,000 per new job per year for five years. It requires the creation of at least 50 high-paying jobs within a 24-month period.

Work Opportunity Tax Credit

This federal WOTC is available to Georgia companies that hire individuals from targeted groups with employment barriers. The credit value ranges from $1,200 to $9,600 per eligible new hire, depending on the target group and hours worked.

Industries frequently benefiting from Georgia business tax credits

  • Manufacturing and telecommunications. The Investment Tax Credit is available for certain investments in these industries. 
  • Shipping. The Port Tax Credit Bonus provides additional credit for increasing imports and exports through Georgia ports.
  • Film and television. The Film Tax Credit offers tax savings for film or television production companies that film in Georgia. 

Consult with a tax professional to understand what tax credits and incentives you could potentially apply to your business. 

Common payroll tax mistakes in Georgia (and how to avoid them)

Navigating Georgia's complex payroll tax landscape can be challenging. Here are the most frequent errors employers make—and how to stay compliant.

Misclassifying workers

Treating employees as independent contractors can trigger hefty penalties. Always correctly classify workers according to Georgia’s specific labor laws. When in doubt, consult a tax professional. 

Missing deadlines

Georgia has strict payroll tax filing deadlines. Late submissions result in penalties and interest. Set up automatic reminders and use payroll software to track due dates. 

Incorrect withholding calculations

Use updated withholding tables and payroll systems to automatically calculate state-specific requirements. 

Overlooking local taxes

Some Georgia cities and counties have additional local payroll taxes. Research your specific location’s requirements to ensure full compliance.

Failing to update employee forms

Outdated employee forms, such as W-4s, W-2s, and 1099s, can lead to inaccurate withholdings. Review and update forms regularly, especially when employees experience life changes like marriage or new dependents. 

Miscalculating UI rates

Employers often overlook changes to unemployment insurance (UI) rates. Stay informed of rate updates and apply them correctly to ensure compliance and avoid overpayments or underpayments. 

Poor recordkeeping

Maintain detailed payroll records for at least four years. Digital tools can help you track and store documents securely. 

Tip: QuickBooks Payroll can help you avoid these common mistakes by automating calculations, tracking deadlines, and keeping accurate records.

How to manage your small business payroll obligations 

Managing payroll obligations is one of the most crucial aspects of running a small business. Ensuring that employees are paid accurately fosters a healthy working environment and maintains tax regulation compliance. To streamline this process, follow our small business tax preparation checklist and these steps to help manage your payroll taxes. 

Step 1. Partner with a tax professional

Consult a tax professional familiar with Georgia’s payroll taxes and regulations. They can guide you through compliance requirements, local tax nuances, and potential tax benefits for your business. 

Step 2. Explore payroll software

Consider using payroll software to streamline your payroll processes. Tools like QuickBooks automate tax calculations, minimize errors, and ensure compliance with Georgia’s laws.

Step 3. Proactively plan for compliance

Stay informed about Georgia’s payroll tax deadlines and updates. Payroll software combined with expert guidance can help ensure you meet state and local requirements.

Step 4. Optimize your tax strategy

Work with your tax professional to uncover deductions, credits, or other incentives that could benefit your business. Leverage software reports to better understand your payroll data and identify opportunities for savings.

Step 5. Build a financially strong foundation

By combining expert guidance with the right tools, you can efficiently manage payroll taxes and focus on growing your business in the Peach State.

What are the payroll taxes in Georgia?

Georgia’s payroll taxes include Georgia State Income Tax and Georgia State Unemployment Insurance, each with its own rate and payment responsibility.

Calculating payroll taxes in Georgia

Payroll tax calculations in Georgia depend on several factors, including:

  • Employee’s wages and taxable income
  • Employer’s UI tax rate
  • Federal, state, and local taxes

For employees, the main payroll taxes are: 

  • Georgia State Income Tax
  • Federal income tax
  • FICA (Social Security and Medicare taxes)

For employers, the main payroll taxes are:

  • State unemployment insurance
  • Federal Unemployment Tax (FUTA)

To accurately calculate Georgia payroll taxes, you can consult the Georgia Tax Center, use payroll software configured with Georgia-specific data, or consult a professional. These resources will help you calculate the specific amounts for your business and employees. 

It’s essential to stay updated on the current rates and regulations, as they can change annually.

Leverage payroll software for compliance in Georgia

Managing payroll in Georgia requires accuracy due to complex regulations. Errors can lead to penalties and legal risks, but QuickBooks streamlines payroll management to ensure compliance. It automatically calculates, files, and pays federal and state payroll taxes—with a 100% accuracy guarantee.** You'll stay current with Georgia tax law changes, easily generate reports for filings, and get up to $25,000 in penalty coverage if issues arise.**


Disclaimer: 

**Accuracy Guaranteed: Available with QuickBooks Online Payroll Core, Premium, and Elite. We assume responsibility for federal and state payroll filings and payments directly from your account(s) based on the data you supply. As long as the information you provide us is correct and on time, and you have sufficient funds in your account, we’ll file your tax forms and payments accurately and on time or we’ll pay the resulting payroll tax penalties. Guarantee terms and conditions are subject to change at any time without notice.

Tax penalty protection: If you receive a tax notice and send it to us within 15 days of the tax notice we will cover the payroll tax penalty, up to $25,000. Additional conditions and restrictions apply. Only QuickBooks Online Payroll Elite users are eligible to receive tax penalty protection.

This content is for information purposes only and information provided should not be considered legal, accounting or tax advice or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.


Recommended for you

Mail icon
Get the latest to your inbox
No Thanks

Get the latest to your inbox

Relevant resources to help start, run, and grow your business.

By clicking “Submit,” you agree to permit Intuit to contact you regarding QuickBooks and have read and acknowledge our Privacy Statement.

Thanks for subscribing.

Fresh business resources are headed your way!

Looking for something else?

QuickBooks

From big jobs to small tasks, we've got your business covered.

See how it works

Firm of the Future

Topical articles and news from top pros and Intuit product experts.

See how it works

QuickBooks Support

Get help with QuickBooks. Find articles, video tutorials, and more.

See how it works