The Georgia Department of Revenue has released the 2019 employer withholding tax guide, which contains the income tax withholding wage-bracket and percentage method tables that are effective with wages paid on and after January 1, 2019.

As we previously reported, the maximum Georgia income tax rate has temporarily been reduced to 5.75%, down from 6.0%. (EY Payroll Newsflash Vol. 19, #069, 4-5-2018.)

Supplemental withholding rates for 2019

The supplemental withholding rates on bonuses and other supplemental compensation are as follows (O.C.G.A. Section 48-7-101(f) (5)):

If the annual income is $x, withhold at a rate of y%:

Under $8000 .......................... 2%

$8000-$10,000 .......................3%

$10,001-$12,000 .....................4%

$12,001-$15,000 ....................5%

Over $15,000 .........................5.75% (down from 6.0%)

File calendar year 2018 Forms W-2 by January 31, 2019

Legislation enacted in 2016 requires Georgia employers to submit Forms W-2, along with the annual reconciliation return (Form G-1003) and Forms 1099 where Georgia income tax was withheld, to the Department by January 31, accelerated from February 28 for paper forms and March 31 for electronically filed forms. (HB 742, Act 313, signed by the governor on February 23, 2016.)

Georgia employers that file and pay state withholding tax electronically, and those required to file Forms W-2 electronically with the Social Security Administration, must also file Forms W-2 electronically with the Georgia Department of Revenue.

For more information, see the Department's website.

Legislation temporarily reduces corporate and individual income tax rates

As we previously reported, Georgia Governor earlier this year signed into law HB 918,a tax bill containing corporate and individual income tax changes (hereafter, "the law").

The law temporarily reduces both the corporate and the highest individual income tax rates. Applicable to tax years beginning on or after January 1, 2019, the corporate income tax rate and the highest individual income tax rate, both currently 6%, decrease to 5.75%.

Applicable to tax years beginning on or after January 1, 2020, the corporate and the highest individual income tax rates further decrease to 5.5%, if the legislature approves, and the governor signs a joint resolution ratifying this additional rate reduction.

These reductions are temporary and will sunset on December 31, 2025. On January 1, 2026, the corporate and the highest individual income tax rates will revert back to the 6% rate — the rate in effect on the day before the law was enacted.

———————————————

———————————————
ATTACHMENT

EY Payroll News Flash