Georgia Payroll Tax Default Prevention Checklist

Georgia Payroll Tax Default Prevention Checklist

Payroll tax withholding is a state obligation that employers must withhold from employee wages and remit to the Georgia Department of Revenue. This includes state income tax withholding reported on Form G-7.

Unemployment insurance taxes are administered separately by the Georgia Department of

Labor and involve different forms and procedures. When withholding taxes are not filed or paid on time, the Georgia Department of Revenue initiates collection and enforcement procedures.

What This Issue Means

A withholding tax default occurs when an employer fails to file required Georgia withholding tax returns or fails to pay withholding taxes owed by the state deadline. The default may involve missed filings, late payments, or incomplete payments that leave a balance due.

Why the State of Georgia Issued This or Requires This

The State of Georgia requires all employers to withhold state income tax from employee paychecks and to remit those amounts on a regular schedule. Notices and collection actions are issued by the Georgia DOR to recover unpaid taxes and to maintain compliance with withholding tax laws.

Defaults typically result from cash flow problems, administrative errors, business transitions, payroll processing oversights, or a lack of awareness about filing and payment requirements.

Collection activity escalates when employers fail to respond to initial notices or do not address outstanding obligations.

What Happens If This Is Ignored

Ignoring a withholding tax default causes the Georgia Department of Revenue to escalate collection action over time. Additional notices, penalties, and interest charges increase the total amount owed.

Continued non-payment or non-filing may result in the Georgia DOR placing a lien on business assets or initiating wage garnishment or bank levy procedures. The Georgia Department of

Revenue’s Office of Special Investigations handles violations of tax laws.

What This Does NOT Mean

Receiving a Georgia withholding tax notice does not mean the Georgia DOR has automatically frozen your business accounts, seized your property, or filed a lawsuit. A default notice is an initial communication about an unpaid or unfiled obligation, not a final enforcement action.

Some employers confuse a state withholding tax notice with an unemployment insurance issue; these are separate systems administered by different agencies. There is typically still time to respond and address the issue before more serious enforcement begins.

Steps to Take After Receiving a Withholding Tax Default

Notice

1. Review all documents received: Locate and review any notice from the Georgia

Department of Revenue. Identify the specific tax type and confirm it relates to withholding tax. Note the tax period or periods listed on the notice.

Record the amount owed as stated on the notice. Note any deadline for response or payment listed on the notice. Keep all documents in one secure location for reference.

2. Verify the information against your records: Pull your payroll records for the periods listed on the notice and check your records for filed withholding tax returns during those periods. Verify whether payments were made and, if so, when they were processed.

Check your bank or accounting records for payment confirmations. Identify any discrepancies between what the notice says and what your records show.

3. Gather all relevant payroll and tax documents: Collect copies of all withholding tax returns filed during the relevant periods. Gather bank statements showing any payments made to the Georgia Department of Revenue.

Obtain payment confirmations or receipts from the Georgia Department of Revenue if available. Collect payroll registers showing wages paid to employees, W-2 forms, or wage records for the periods in question.

4. Contact the Georgia Department of Revenue: Locate the contact information on your notice or access the Georgia Tax Center online. Call or write the department using the phone number or address on the notice and provide your business name, tax

identification number, and the specific notice or issue. Ask for clarification on the amount owed, the tax periods involved, and any deadline. Request written confirmation of your conversation and next steps.

5. Request a payment plan or installment agreement if applicable: Ask the Georgia

Department of Revenue whether a payment plan is available for your situation as part of tax debt resolution options. Payment plans may not be longer than 60 months, and the minimum monthly payment is $25.

Gather financial information about your business’s ability to pay if requested. Submit any required application or request forms to the State of Georgia through the Georgia Tax

Center.

6. File any outstanding withholding tax returns immediately: Identify which withholding tax returns are still outstanding based on the notice. Complete all required withholding tax forms, such as Form G-7, and file the returns with the Georgia Department of

Revenue as soon as possible.

Keep copies of filed returns for your records. Request confirmation from the Georgia

Department of Revenue that returns were received and processed.

7. Monitor future withholding tax obligations: Review your current withholding tax filing and payment schedule with the Georgia Department of Revenue. Filing frequency may be semi-weekly, monthly, quarterly, or annual, depending on your withholding amounts as established under Georgia Code.

Confirm the due dates for each filing and payment. Set up a system to track filing deadlines and payment dates to ensure withholding taxes are withheld correctly from employee wages going forward.

Important Deadlines and Rights

Notice of Proposed Assessment responses must be filed within 45 days from the date of the notice to file a protest with the Georgia Department of Revenue. Official Assessment appeals must be filed within 45 days from the date on the official assessment to either pay the assessment or file an appeal with the Georgia Tax Tribunal or superior court as permitted under

Georgia Code.

Missing these deadlines can result in additional enforcement action. The Georgia Department of

Revenue generally has three years from the date a return is filed to assess additional income tax.

Payment Plans and Liens

The Georgia Department of Revenue offers payment plans for individuals and businesses with up to 60 months available and a minimum monthly payment of $25. A tax lien must be paid in full for the lien to be released.

Setting up a payment plan does not automatically prevent the Georgia Department of Revenue from placing a lien on your business. After a state tax execution is recorded, the Georgia Tax

Tribunal provides a forum for appeals, and the Georgia Department of Revenue has 10 years from the recording date to collect the tax liability.

Facing State Enforcement or Payroll Tax Issues?

If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.