Georgia Payroll Tax Nonpayment Emergency
Checklist
Understanding Payroll Tax Nonpayment
Georgia withholding tax nonpayment occurs when an employer fails to deposit withheld employee income taxes or employer payroll taxes by the due date. Withholding tax represents trust fund taxes—money withheld from employee paychecks that the employer holds temporarily before remitting to the Georgia Department of Revenue.
Why This Issue Requires Immediate Attention
Deposit schedules are based on the employer’s withholding tax liability amount: semi-weekly payers handle more than $50,000 in annual withholding, monthly payers handle less than
$50,000, and quarterly payers follow their assigned schedules. When deposits are not received by the due date, the Georgia Department of Revenue automatically initiates collection procedures through payment record systems that track quarterly reports and identify delinquent accounts.
Consequences of Nonpayment
Penalties and interest are automatically assessed by law when withholding tax payments are
late, not applied discretionarily
- Failure to file penalty starts at $25 plus 5% of the tax withheld, with an additional 5% for
each subsequent late month, capped at $25 plus 25% of the tax withheld before application of any payments or credits.
- Failure to pay penalty follows the same structure: $25 plus 5% of the tax, with an
additional 5% for each subsequent late month, reaching a maximum of $25 plus 25% of the tax.
- Interest accrues monthly from the due date at an annual rate equal to the Federal
Reserve prime rate plus 3%, reviewed and potentially adjusted each January.
Personal Liability for Withholding Tax
The Georgia Department of Revenue must assess personal liability against responsible individuals before pursuing enforced collection action against them personally under OCGA
Section 48-2-52. Persons subject to personal liability include those who have control or authority over the business’s funds and assets, such as officers and directors, individuals who control the business’s financials, those who hire and fire employees, and individuals who sign checks.
Those who control company funds and bank accounts can also be held personally responsible for unpaid withholding tax debt. Business owners who delegate payroll responsibilities to a third party remain personally liable if the third party fails to remit withheld income tax to the state on time.
Steps to Address Payroll Tax Nonpayment
1. Log in to your business tax account on the Georgia Department of Revenue website to review recent payment records for all payroll tax types and check for any notices received in the past 30 to 60 days.
2. Contact the Georgia Department of Revenue directly at 877-423-6711 if you cannot locate payment records or are unsure of the account status, and request written confirmation of any unpaid tax debt balances.
3. Collect copies of all payroll tax deposits made in the current and prior quarter, obtain bank account statements showing payments sent to the Georgia Department of
Revenue, and retrieve deposit receipts or confirmation numbers from the state.
4. Request an itemized statement of account from the Georgia Department of Revenue that shows the original unpaid tax debt amount, penalties assessed, and accrued interest, and verify that the statement includes the tax period or periods involved.
5. Read each notice carefully to identify the specific tax period or periods affected, note any deadlines stated in the notice, and identify the type of notice, such as Notice of
Proposed Assessment or Official Assessment, that precedes state tax execution filing.
6. Calculate total available business funds and determine whether full payment of the tax debt is feasible without closing the business or affecting continued operations for small
businesses.
7. Call 877-423-6711 during business hours to ask whether the state offers payment plans or an installment agreement for withholding tax debt, inquire about specific terms and monthly payment amounts, and request written information about available payment plan options.
8. Ask for written documentation of any installment agreement before committing, verify the plan specifies the total amount due and the monthly payment amount, and confirm whether penalties and interest will continue to accrue during the plan.
9. Write to the Georgia Department of Revenue if you dispute the amount owed on your tax return. Include specific details such as tax period and transaction date, attach copies of supporting documents, and send the letter via certified mail or email to the address provided in the notice.
10. Request penalty review by contacting the Georgia Department of Revenue to ask whether penalties can be reviewed under OCGA Section 48-2-43, which allows the department to waive penalties in whole or in part if reasonable cause exists where failure to comply was not a result of purposeful disregard of tax requirements.
Understanding Collection Timeframes
Assessment procedures follow a clear sequence: the state sends a Notice of Proposed
Assessment first, the taxpayer has 45 days to protest, and if not protested, an Official
Assessment is issued before the state may file a state tax execution or tax lien. The Georgia
Department of Revenue must assess income tax within three years after the state tax return is filed under the general rule in OCGA Section 48-2-49.
Collection Actions and Enforcement
After filing a tax lien, the Georgia Department of Revenue may pursue a tax levy against bank account funds or other business assets to satisfy unpaid state taxes. Small businesses should understand that a tax levy can freeze a bank account immediately, preventing access to operating funds needed for payroll and expenses.
Business owners who use third-party payroll services remain responsible for ensuring those services submit accurate state tax returns and remit withheld income tax on time, as delegation does not eliminate personal liability.
Available Relief Options
Taxpayers unable to pay the full tax debt immediately may request an installment agreement through the Georgia Tax Center or by submitting Form GA-9465. The Georgia Department of
Revenue may also consider an Offer in Compromise in cases where the taxpayer demonstrates an inability to pay the full amount and can document financial hardship under state guidelines.
Both options require submission of financial documentation and continued compliance with current income tax filing requirements during the agreement period.
Successor Liability Requirements
Georgia law addresses successor liability under OCGA Section 48-7-106: if a business owner is liable for any withholding tax, interest, or penalty and sells out the business or stock of goods or quits business, successors or assigns shall withhold sufficient purchase money to cover the amount of tax due and unpaid. Successors who fail to withhold become personally liable for the unpaid amounts.
Preventing Future Nonpayment
Create a calendar marking all payroll tax due dates for the upcoming twelve months and set automatic reminders five to seven days before each due date. Assign responsibility for payroll tax deposits to a specific person or team and verify deposits have been received before the due date closes.
Consult the Georgia Employer Tax Guide for detailed information about withholding requirements, deposit schedules, and proper reporting procedures to maintain compliance with state taxes.
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.
We help with
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
20+ years experience • Same-day reviews available
