What payroll deductions are employers required to withhold?

Payroll Tax Withholding Requirements for Employers in Georgia

Employers operating in Georgia must withhold specific payroll deductions from employees’ wages to remain compliant with state and federal regulations. Understanding these requirements is essential for accurate payroll processing and reporting.

Mandatory Payroll Deductions

• Federal Income Tax: Employers must withhold federal income tax based on the employee’s Form W-4 and IRS tax tables.
• Social Security Tax: Employers withhold 6.2% of wages up to the annual wage base limit and also contribute a matching amount.
• Medicare Tax: Employers withhold 1.45% of all wages for Medicare tax and match this amount. Additional Medicare tax withholding of 0.9% applies to wages over $200,000.
• Georgia State Income Tax: Employers must withhold Georgia state income tax according to the employee’s Form G-4 and Georgia withholding tables.
• State Unemployment Insurance (SUI): While employers pay SUI taxes, these are not withheld from employee wages.

Additional Considerations

• Local Taxes: Georgia does not impose local income taxes, so no local tax withholding is generally required.
• Voluntary Deductions: Employers may also withhold voluntary deductions such as retirement plan contributions, health insurance premiums, and wage garnishments as authorized by employees or court orders.
• Recordkeeping and Reporting: Maintain accurate payroll records reflecting all withheld amounts and submit required tax filings to the IRS and Georgia Department of Revenue on schedule.
• Automation Tools: Consider using payroll software or services that automatically calculate and withhold correct tax amounts to reduce errors and ensure compliance.

As of 2026, regularly review Georgia Department of Revenue updates to stay current on withholding rates and any changes to payroll tax obligations.