Employer Tax Contributions

Tax Type	Rate	Base
State Unemployment Insurance (SUI)	New employers: 2.64% - 2.7%	First $9,500 of wages per employee annually
State Income Tax Withholding (PIT)	5.29% - 5.49% (flat rate, decreasing annually)	No limit
Federal Unemployment Tax (FUTA)	0.6% (effective rate with full SUTA credit)	First $7,000 of wages per employee annually

Filing & Compliance

• Register with Georgia Department of Revenue for withholding number and Georgia Department of Labor for UI account number.
• New hires must be reported to the state directory within 10 days of hire.
• Filing and payment due dates vary (semi-weekly, monthly, quarterly) based on total tax withheld; quarterly reports and payments for SUI are due by the last day of the month following the end of the quarter (e.g., April 30 for Q1).

Employee tax deductions in Georgia involve federal taxes (income tax, FICA), state income tax, and other deductions like retirement contributions and health insurance premiums.

Federal Taxes

• Federal Income Tax: This tax is progressive, meaning higher earners pay a larger percentage. The exact amount withheld depends on your W-4 form information, such as filing status and claimed allowances.
• FICA Taxes: These fund Social Security and Medicare.
  • Social Security Tax: 6.2% of your wages up to a cap of $176,100 for 2025.
  • Medicare Tax: 1.45% of all your wages. An additional 0.9% Medicare tax applies to wages exceeding $200,000 (for a total of 2.35%).

Georgia State Income Tax

• State Income Tax: Georgia has a flat income tax rate of 5.39% as of 2024, scheduled to decrease annually by 0.10% until it reaches 4.99%. The withholding is calculated based on your G-4 form information, including exemptions and allowances.

Other Deductions

• Pre-tax Deductions: These deductions, like 401(k) contributions, health insurance premiums, and flexible spending accounts (FSAs), reduce your taxable income.
• Post-tax Deductions: Examples include Roth 401(k) contributions and wage garnishments. These are taken after taxes have been calculated.

Georgia Tax Credits (For Employers)

• Georgia offers various tax credits for businesses, such as retraining program credits and investments in child care facilities. It's important to review these if you're an employer in Georgia as they can impact your overall tax liability. Note: Recent legislation (HB 1181) will impact some credit carryforward periods starting January 1, 2025.

Standard Deduction (For 2025)

• Single filers: $15,000
• Married filing jointly: $30,000
• Married filing separately: $15,000
• Head of household: $22,700 (based on 2024 standard deduction and $800 increase from 2024 to 2025.)

Additional Information

• Pension Contributions: Mandatory for most employees since January 1, 2019, with contributions from the employer, employee, and the government.
• Personal Exemptions: Eliminated federally since the 2017 Tax Cuts and Jobs Act.

It's important to stay up-to-date with changes to tax laws. This information is current as of today's date, February 5, 2025, and might change in the future.