Compilation of Rules and Regulations of the State of Georgia
Department 560 - RULES OF DEPARTMENT OF REVENUE
Chapter 560-7 - INCOME TAX DIVISION
Subject 560-7-8 - RETURNS AND COLLECTIONS
Rule 560-7-8-.33 - Payment and Reporting of Withholding Tax

1. In determining the withholding tax amount for the lookback period, the Department shall determine the total amount of withholding tax liabilities reported or required to be reported per the taxpayer's withholding tax quarterly returns (Forms G-7) for the four quarters constituting the lookback period.

2. Because an employer may have multiple Georgia withholding tax identification numbers, an employer must include all withholding tax liabilities incurred under the same federal employer identification number (FEIN) when calculating its aggregate amount of withholding tax liabilities. For example, a business may have five locations and each location remits and reports withholding tax under a different state withholding tax number yet all locations operate under the same FEIN. The calculation of the withholding tax for the lookback period must include the withholding tax of all five business locations.

3. An employer who does not possess a withholding tax history in Georgia will be required to file on a monthly basis until the employer has established a withholding tax history.

4. In determining the total amount of withholding tax for each quarter in the lookback period, the Department will not include adjustments made on a corrected Form G-7 quarterly return filed after the return's due date. However, adjustments made on line 2 of Form G-7 filed by the return's due date will be taken into consideration.

1. Unless a payer falls under subparagraph (3)(g) of this regulation, a semi-weekly payer for a calendar year must remit withholding tax via EFT on either the Wednesday or Friday following the payday as discussed below.

2. All semi-weekly payers must remit withholding tax via EFT. See O.C.G.A. § 48-2-32 and Rule 560-3-2-.26 for additional information and requirements.

3. Payroll checks issued between scheduled paydays will be deemed to have been issued for the next scheduled payday. For example, a company normally pays its employees on the 15th and last day of the month. However, an employee is issued a supplemental check on the 6th of the month due to a miscalculation of his earnings. For withholding tax purposes, the supplemental check is deemed to have been issued on the 15th. The related withholding tax from the supplemental check shall be sent via EFT along with the withholding tax related to the payday scheduled for the 15th of the month.

4. Employers with two or more payroll periods

1. Notwithstanding subparagraphs (b) through (f) of this paragraph, withholding tax totaling more than $100,000 for the payday must be remitted via EFT by the next business day after the payday. For example, an employer is required to withhold $120,000 in tax related to the payroll checks dated Monday, May 15th. Therefore, the employer must remit the withheld tax to the Department via EFT on Tuesday, May 16th.

1. Every employer who qualifies as a semi-weekly payer shall file a "G-7/SchB Quarterly Return for Semi-Weekly Payer" on or before the last day of the month following the end of the calendar quarter in which the withholding tax was required.

2. The return shall reflect the withholding tax liability for the calendar quarter less credit for any withholding tax payments made pursuant to subparagraph (3)(b) of this regulation during the calendar quarter. Any outstanding withholding tax reflected on the return shall be remitted via EFT on or before the due date of the return. Such amount shall be subject to the penalties provided in paragraph (6) as well as interest.

1. Every employer who qualifies as a monthly payer shall file a "G-7 Quarterly Return for Monthly Payer" on or before the last day of the month following the end of the calendar quarter in which the withholding tax was required.

2. The return shall be accompanied by payment of the amount of any tax due for such calendar quarter less credit for any withholding tax payments required under subparagraph (3)(c) of this regulation during the calendar quarter. Such amount shall be subject to the penalties provided in paragraph (6) as well as interest.

1. Every employer who qualifies as a quarterly payer shall file a "G-7 Quarterly Return for Quarterly Payer" on or before the last day of the month following the end of the calendar quarter in which the withholding tax was required.

2. The return shall be accompanied by payment of the amount of tax due for such calendar quarter less credit for any withholding tax payments made under subparagraph (3)(d) of this regulation during the calendar quarter.

1. Every employer who qualifies as an annual payer shall file the fourth quarter "G-7 Quarterly Return for Quarterly Payer" on or before January 31st of the following year in which the withholding was required.

2. The return shall be accompanied by payment of the amount of tax due for the year less credit for any withholding tax payments made under subparagraph (3)(e) of this regulation during the calendar year.

1. For calendar years beginning on or before December 18, 2015, on or before February 28th of each calendar year, an employer or other withholding taxpayer must file with the Department copies of the previous year's withholding tax statements.

2. The February 28th filing date stated within subparagraph (4)(e)1. shall continue to apply for calendar years beginning after December 18, 2015, with respect to Forms 1099 where Georgia withholding occurred and where such forms are required to be filed for any reason other than to report nonemployee compensation.

3. For calendar years beginning after December 18, 2015, on or before January 31 of each year for the preceding calendar year, an employer or other withholding taxpayer must file with the Department copies of the previous year's Form W-2 withholding tax statements.

4. For calendar years beginning after December 18, 2015, the January 31 filing date stated within subparagraph (4)(e)3. shall also apply with respect to Forms 1099 where Georgia withholding occurred and where such forms are required to be filed to report nonemployee compensation.

5. The Form G-1003 return must accompany the withholding tax statements. The Department may require a different G-1003 return for different types of withholding tax statements.

6. In most cases, the Department will only grant a 30 day extension to file Form G-1003 and all associated withholding tax statements if the Internal Revenue Service issues an extension.

7. Every employer required by the United States Social Security Administration or the Internal Revenue Service to submit withholding tax statements electronically shall similarly submit the Form G-1003 return and all associated withholding tax statements electronically to the Department. Additionally, taxpayers that remit withholding tax payments by electronic funds transfer, whether on a mandatory or voluntary basis, must file the Form G-1003 return and all associated withholding tax statements electronically.

8. Withholding tax statements include Forms 1099, W-2, G2-A, etc. Forms 1099 are only required to be submitted if Georgia income tax is withheld (except 1099-K).

1. An employer must report, only by using the Department's Georgia Tax Center, the termination of the business or change in business status relating to ownership, address, entity structure, or any other significant change relating to withholding tax responsibilities.

2. An employer is required to file its final withholding tax form and pay all withholding tax due by the earlier of the due date or 30 days after the close of the business or change in business entity or ownership.

3. Copies of the withholding tax statements must be filed along with the Form G-1003 return within 30 days after the close of the business or change in business entity or ownership.

(i) If a withholding tax statement is not furnished to a person by the required date, the person required to furnish such statement shall be assessed a late penalty in the amount of:

(ii) If a withholding tax statement is not filed with the Department by the required date, the person required to file such statement shall be assessed a late penalty in the amount of:

(iii) A person may be subject to more than one category of the penalties imposed by subparagraphs (4)(g)(i) and (4)(g)(ii).

1. Example 1:

Late Payment Penalties:

April 16th, 2009:

$25 + ($5,000 * 15%)=$775

($6,000 * 10%)=$600

($7,000 * 5%)=$350

Late Filing Penalty:

May 1st, 2009:

($18,000 * 5%)=$900

Total Penalty: $2,625

2. Example 2.

Late Payment Penalties:

None.

Late Filing Penalty:

May 1st, 2009

$25 + ($200,000 * 5%)=$10,025

June 1st, 2009

($200,000 * 5%)=$10,000

Total Penalty: $20,025

3. Example 3.

Late Payment Penalties prior to Filing Due Date:

Feb 16th, 2009:

$25 + 5% of $50,000 from January=$2,525

Feb 20th payment of $100,000 pays the $50,000 January amount due and $50,000 of February amount due which leaves $25,000 owed from February.

Mar 16th, 2009:

5% of $25,000 from February=$1,250

Mar 20th payment of $50,000 pays for remainder of the $25,000 owed from February and pays $25,000 of the amount due from March which leaves $50,000 owed from March.

Apr 16th, 2009:

5% of $50,000 from March=$2,500

Total Late Payment Penalty before Filing Due Date=$6,275

Penalty after Filing Due Date:

Tax Balance Unpaid=$50,000

Maximum Penalty Threshold=$25 + 25% of $200,000=$50,025

Late Filing Penalty

May 1st, 2009

($200,000 * 5%)=$10,000

Late Payment Penalty

May 16th, 2009

($50,000 * 5%)=$2,500

Late Filing Penalty

June 1st, 2009

($200,000 * 5%)=$10,000

Late Payment Penalty

June 16th, 2009

($50,000 * 5%)=$2,500

Late Filing Penalty

July 1st, 2009

($200,000 * 5%)=$10,000

Filed July 15th, Stop Late Filing Penalty

Late Payment Penalty

July 16th, 2009

($50,000 * 5%)=$2,500

Late Payment Penalty

Aug 16th, 2009

($50,000 * 5%)=$2,500

Late Payment Penalty

Sep 16th, 2009

($50,000 * 5%)=$2,500

Late Payment Penalty

Oct 16th, 2009

($50,000 * 5%)=$2,500, however reduced to $1,250 due to threshold

Threshold Met, Stop All Additional Late Penalty

Total Penalty=$50,025