Ga. Comp. R. & Regs. R. 560-7-8-.33 - Payment and Reporting of Withholding Tax
(1)
Purpose. The purpose of this
regulation is to provide guidance concerning the payment and reporting of
withholding tax required under O.C.G.A. §§
48-2-32,
48-7-101,
48-7-103,
48-7-105, and
48-7-106, and the withholding
penalties imposed by subsection (c) of O.C.G.A. §
48-7-126.
(2)
Definitions.
(a) "Annual payer" means an employer who
withholds or is required to withhold $800.00 or less in the aggregate for the
lookback period.
(b) "Business day"
means every day except Saturday, Sunday, or any holiday observed by the Federal
Reserve Bank or the State of Georgia.
(c) "EFT" means the payment by electronic
funds transfer as provided and required by Rule
560-3-2-.26.
(d) "Lookback period" means the twelve month
period ending June 30th of the preceding calendar
year. For example, the lookback period for calendar year 2016 is the period
from July 1, 2014 through June 30, 2015.
(e) "Monthly payer" means an employer who
withholds or is required to withhold $50,000 or less in the aggregate for the
lookback period and who is not an annual payer or a quarterly payer.
(f) "Payday" means the date on the employee's
check or the first day the employee is able to tender the check for cash or
other consideration, whichever is earlier.
(g) "Quarterly payer" means an employer who
withholds or is required to withhold $200.00 or less per month during the
lookback period and who is not an annual payer.
(h) "Semi-weekly payer" means an employer who
withholds or is required to withhold more than $50,000 in the aggregate during
the lookback period.
(i)
"Withholding tax" means the tax withheld or required to be withheld from an
employee's wages pursuant to O.C.G.A. §
48-7-101.
(3)
Payment of Withholding Tax.
(a) Determination of Taxpayer Status. An
employer will be deemed a semi-weekly, monthly, quarterly, or annual payer
based upon an annual calculation of the employer's aggregate amount of
withholding tax reported for the lookback period.
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.
(b) Semi-weekly payer
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.
(i) For paydays occurring
on a Wednesday, Thursday, or Friday the withholding tax is required to be
remitted via EFT on or before the following Wednesday. If the following
Wednesday is not a business day, the tax must be remitted on or before the next
business day thereafter.
(ii) For
paydays occurring on a Saturday, Sunday, Monday, or Tuesday the withholding tax
is required to be remitted via EFT on or before the following Friday. If the
following Friday is not a business day, the tax must be remitted on or before
the next business day thereafter.
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
(i) An employer with two or more payroll
periods in which the paydays fall on different dates shall remit the related
withholding tax for each payday on the respective payment due dates pursuant to
subparagraph (3)(b)1. of this regulation.
(ii) Example. An employer pays its hourly
employees every Friday and its salaried employees on the
15th and last day of the month.
(I) April 15th
falls on a Friday; therefore, the withholding tax for the salaried employees
will be remitted the following Wednesday, April 20th
along with the withholding tax related to the hourly employees. In this case,
the employer has a single remittance obligation for both paydays.
(II) April 15th
falls on a Tuesday; therefore, the withholding tax for the salaried employees
will be remitted the following Friday, April 18th.
The withholding tax related to the hourly employees' Friday, April
11th payday will be remitted the following
Wednesday, April 16th. In this case, the employer
has two remittance obligations for two separate paydays.
(c) Monthly payer. An
employer that is determined to be a monthly payer must remit withholding tax
with respect to payments made during a calendar month on or before the
15th day of the following month.
(d) Quarterly payer. An employer that is
determined to be a quarterly payer must remit withholding tax with respect to
payments made during the calendar quarter on or before the last day of the
month following the end of the calendar quarter.
(e) Annual payer. An employer that is
determined to be an annual payer must remit withholding tax with respect to
payments made during the calendar year on or before the last day of January of
the following year in which the tax was required to be withheld.
(f) Monthly, quarterly, and annual payers
shall submit their payments via EFT if required to do so by regulation
560-7-3-.26.
(g) One-Day Rule
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.
(4)
Reporting of Withholding
Tax.
(a) Semi-weekly Payer
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.
(b) Monthly
Payers
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.
(c) Quarterly Payers
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.
(d) Annual Payers
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.
(e) Withholding Tax
Statements
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).
(f) Termination of business or change in
business status.
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.
(g) Withholding tax statement penalties.
(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:
(I) Ten dollars per statement furnished up to
30 calendar days after the date such statement is due, provided that the total
amount imposed on a person pursuant to this subparagraph shall not exceed
$50,000.00;
(II) Twenty dollars per
statement furnished at least 31 calendar days, but not more than 210 calendar
days after the date such statement is due, provided that the total amount
imposed on a person pursuant to this subparagraph shall not exceed $100,000.00;
or
(III) Fifty dollars per
statement furnished 211 calendar days or more after such statement is due,
provided that the total amount imposed on a person pursuant to this
subparagraph shall not exceed $200,000.00.
(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:
(I) Ten dollars per statement filed up to 30
calendar days after the date such statement is due, provided that the total
amount imposed on a person pursuant to this subparagraph shall not exceed
$50,000.00;
(II) Twenty dollars per
statement filed at least 31 calendar days, but not more than 210 calendar days
after the date such statement is due, provided that the total amount imposed on
a person pursuant to this subparagraph shall not exceed $100,000.00;
or
(III) Fifty dollars per
statement filed 211 calendar days or more after such statement is due, provided
that the total amount imposed on a person pursuant to this subparagraph shall
not exceed $200,000.00.
(iii) A person may be subject to more than
one category of the penalties imposed by subparagraphs (4)(g)(i) and
(4)(g)(ii).
(5)
Certification of Software Vendors. At such time that the
Department starts its certification program, the electronic filing of
withholding returns and withholding tax statements must be completed by
utilizing a software vendor that is approved by the Department.
(6)
Withholding Penalties. The
withholding penalties imposed by subsection (c) of O.C.G.A. §
48-7-126 shall be applied as
follows (see subparagraph (6)(e) for examples):
(a) The addition of the $25 late penalty
assessed on a withholding period may only occur once per quarter. Such $25
penalty shall be added to the first instance of either the late filing penalty
or the late payment penalty.
(b)
Five (5) percent late filing penalty will be assessed starting on the first
business day after the due date of the return, and then five (5) percent will
be assessed on the first day of each month thereafter. Any payments or credits
as well as amounts on the adjustment lines on the Forms G-7 will for purposes
of the late filing penalty calculation be ignored; this will be calculated
using the tax withheld before application of any payments or credits and any
adjustments listed on the Forms G-7.
(c) For all but quarterly and annual payers,
late payment penalty will be assessed based on five (5) percent of the separate
months the tax is due for the period of time prior to the return due date.
Thereafter, it will be assessed at five (5) percent of the aggregate of the
unpaid balance on the 16th of the month. For
quarterly and annual payers it will be assessed at five (5) percent of the
unpaid balance on the 1st of each month after the
return due date.
(d) If at any time
the amount of the late filing penalty plus the late payment penalty charged
would exceed $25 plus twenty-five (25) percent of the total tax due for the
period, the amount necessary to reach this threshold will be assessed and no
further late payment penalty or late filing penalty will be assessed. Any
payments or credits as well as amounts on the adjustment lines on the Forms G-7
will for purposes of this threshold be ignored; this will be calculated using
the tax withheld before application of any payments or credits and any
adjustments listed on the Forms G-7.
(e) Examples:
1.
Example 1:
|
Monthly Payer Owes: |
|
|
$5,000 |
January |
|
$6,000 |
February |
|
$7,000 |
March |
|
Filing Due: |
4/30/2009 |
|
Actual Filing: |
5/10/2009 |
|
Pays in Full: |
5/10/2009 |
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.
|
Monthly Payer Owes: |
|
|
$50,000 |
January |
|
$75,000 |
February |
|
$75,000 |
March |
|
Pays in full on time. |
|
|
Filing Due: |
4/30/2009 |
|
Actual Filing: |
6/15/2009 |
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.
|
Monthly Payer Owes: |
|
|
$50,000 |
January |
|
$75,000 |
February |
|
$75,000 |
March |
|
Pays |
|
|
$100,000 |
February 20th |
|
$50,000 |
March 20th |
|
Filing Due: |
4/30/2009 |
|
Actual Filing: |
7/15/2009 |
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
Notes
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