Compilation of Rules and Regulations of the State of Georgia
Department 560 - RULES OF DEPARTMENT OF REVENUE
Chapter 560-7 - INCOME TAX DIVISION
Subject 560-7-4 - NET TAXABLE INCOME (INDIVIDUAL)
Rule 560-7-4-.03 - Withholding: Procedures Governing Excess Withholding Allowances.Amended

(1) These regulations set forth circumstances under which employers are required to submit withholding exemption certificates received from the employees and provide a procedure for declaring such certificates to be defective. Finally, after such certificates have been declared defective, these regulations provide a procedure by which the Commissioner specifies to an employee the basis upon which amounts of withholding are to be computed.

(2) An employer shall submit to the Commissioner a copy of any withholding exemption certificate furnished to the employer together with a copy of any written statement received from the employee in support of the claims made by the employee on the certificate received from the employee during the calendar quarter (even if not in effect at the end of the quarter) if the employee is employed by that employer on the last day of the calendar quarter and if:

(3) A copy of the certificate shall not be submitted under sub-paragraph (b) of paragraph (2) if the employer reasonably expects, at the time the certificate is received, that the employee's wages from that employer shall not then usually exceed $200 per week.

(4) Copies required to be submitted under paragraph (2) shall be submitted at the time and place of filing the calendar quarterly return for the quarter during which the withholding exemption certificates in question were received by the employer. Such calendar quarterly returns shall be used to transmit such copies. At the choice of the employer, copies required to be submitted under paragraph (2) may be submitted earlier and for shorter reporting periods than a calendar quarter. In such case, the employer shall submit the copies at the place where the employer would file a calendar quarterly return and shall include with the submission a statement showing the employer's name, address, employer identification number, and the number of copies of withholding exemption certificates submitted. However, in no event shall a copy be submitted later than the time for filing the return required to be submitted for the calendar quarter during which the withholding exemption certificate was received.

(5) An employer shall also submit to the Commissioner a copy of any currently effective withholding exemption certificate (or make the original certificate available for inspection), together with a copy of any written statement received from the employee in support of the claims made on the certificate, upon written request of the Commissioner. The request of the Commissioner may relate either to one or more named employees or to one or more reasonably segregable units of the employer. In this regard, the Commissioner may, by written notice, advise the employer that a copy of each new withholding exemption certificate received from one or more named employees, or from one or more reasonably segregable units of the employer, is to be submitted to the Commissioner. The employer shall then submit to the Commissioner a copy of each such new certificate of each such employee immediately after the employer receives the new certificate from the named employee.

(6) Until receipt of written notice from the Commissioner that a certificate, a copy of which was submitted to the Commissioner under this section, is defective, that certificate is effective and the employer shall withhold on the basis of the statements made in that certificate, unless that certificate must be disregarded under the provisions of paragraph (11) of this Rule.

(7) If the Commissioner finds that a copy of a withholding exemption certificate which has been submitted contains a materially incorrect statement, or if the Commissioner determines, after written request to the employee for verification, that he lacks sufficient information to determine if the certificate is correct, the Commissioner shall notify the employer in writing that the certificate is defective and the employer shall thereafter consider the certificate to be defective for purposes of computing amounts of withholding.

(8) If the Commissioner notifies the employer that the certificate is defective, the Commissioner shall, based upon his findings, advise the employer as follows:

(9) The Commissioner shall provide the employer with a copy for the employee of each notice he furnished to the employer under this subsection in addition to the notice furnished to the employer for his own use. The Commissioner shall also mail a similar notice to the employee at the address of the employee shown on the certificate under review.

(10) The employer shall promptly furnish the employee who filed the defective certificate, if still in his employ, with a copy of the written notice of the Commissioner with respect to the certificate and may request another withholding exemption certificate from the employee. The employer shall withhold amounts from the employee on the basis of the withholding exemption status and the maximum number of withholding dependency exemptions specified in the written notice received from the Commissioner.

(11) If and when the employee does file any new certificate (after an earlier certificate of the employee was considered to be defective), the employer shall withhold on the basis of that new certificate (whenever filed) as currently effective only if the new certificate does not make a claim of exempt status, of a withholding exemption status, or of a number of withholding dependency exemptions inconsistent with the advice earlier furnished by the Commissioner in his written notice to the employer. If any new certificate does make a claim which is inconsistent with the advice contained in the Commissioner's written notice to the employer, then the employer shall disregard the new certificate, shall not submit that certificate to the Commissioner, and shall continue to withhold amounts from the employee on the basis of the withholding exemption status and maximum number of withholding dependency exemptions specified in the written notice received from the Commissioner.

(12) If the employee makes a claim on any new certificate that is inconsistent with the advice in the Commissioner's written notice to the employer, the employee may specify on such new certificate, or by a written statement attached to the certificate, any circumstances of the employee which have changed since the date of the Commissioner's earlier written notice, or any other circumstances or reasons, as justification or support for the claims made by the employee on the new certificate. The employee may then submit that new certificate and written statement either to the Commissioner or to the employer, who must then submit a copy of that new certificate and the employee's written statement (if any) to the Commissioner. The employer shall continue to disregard that new certificate and shall continue to withhold amounts from the employee on the basis of the withholding exemption status and maximum number of withholding dependency exemptions specified in the written notice received from the Commissioner unless and until the Commissioner by written notice advises the employer to withhold on the basis of that new certificate and revokes his earlier written notice.

(13) For purposes of this rule, the term "employer" includes an individual authorized by the employer to receive withholding exemption certificates, to make withholding computations, or to make payroll distributions.