Georgia SALT Alerts

State and Local Tax Insights

January 9, 2019 | Withholding Taxes and Tax Overpayment and Underpayment

  • Georgia employers that are required to withhold more than $100,000 in taxes for a payday must remit those taxes via electronic funds transfer by the next banking day. The GA rule differs from federal requirements in that the due date for withholding tax deposits greater than $100,000 is the banking day after the payday and not the next banking day. This rule is applicable to all employers required to withhold tax and takes priority over all other remittance requirements. A GA Employer’s Tax Guide explains this “one day rule” and more: https://bit.ly/2qRLJta
  • The Georgia Dept. of Revenue has announced the tax overpayment and underpayment interest rates for 2019. The interest rate for interest-bearing refunds and past due taxes for the 2019 calendar year will be 8.50% accruing monthly. This is an increase from the 7.50% rate for calendar year 2018. The interest rate for refunds and past due taxes is pegged at a rate equal to the bank prime loan rate as posted by the Board of Governors of the Federal Reserve System, plus 3% to accrue monthly.

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