How Do You Pay Remote Employees in Georgia?

Step-by-Step Process for Paying Remote Employees in Georgia

1. Ensure the worker is classified correctly under Georgian labor laws, distinguishing between employees and independent contractors.
2. Register your company with the Revenue Service of Georgia to obtain a tax identification number (TIN) for payroll purposes.
3. Open a local bank account to facilitate payments in Georgian Lari (GEL) and comply with local banking regulations.
4. Collect necessary employee documentation, including a signed employment contract, personal identification, and banking details.
5. Set a compliant pay schedule, adhering to Georgian labor laws which typically require monthly payments.
6. Calculate payroll ensuring accurate deductions for income tax and social security contributions as mandated by Georgian law.
7. Pay employees via compliant methods such as local bank transfer, ensuring all payments are made in GEL.
8. Remit payroll taxes to the Revenue Service of Georgia on a monthly basis, including income tax and social security contributions.
9. File annual payroll reports with the Revenue Service, detailing all employee earnings and tax withholdings.
10. Issue annual income statements to employees for their personal tax filings.

What Are The Legal Ways To Pay Georgia-Based Employees From Another Country?

Local Bank Transfer

• Best for: Employers with a registered entity in Georgia paying employees directly in GEL.
• Pros: Cost-effective, straightforward, and compliant with local banking regulations.
• Limitations: Requires a local bank account and adherence to Georgian payroll tax laws.
• Compliance note: Payments must comply with Georgian labor laws and be made in GEL.

Direct Payroll Services

• Best for: Companies with a Georgian entity that want to outsource payroll processing and compliance.
• Pros: Ensures accurate tax withholding and compliance with Georgian tax authorities.
• Limitations: Still requires local entity setup and oversight of compliance.
• Compliance note: Subject to Georgian tax regulations; no restrictions on paying in GEL. Playroll's Global Payroll services manage this end-to-end.

Employer of Record Platform Disbursement

• Best for: Foreign companies hiring Georgian employees without establishing a local entity.
• Pros: The EOR becomes the legal employer, handling payroll, tax filings, and compliance with Georgian authorities.
• Limitations: Higher cost than direct payroll and less direct control over employment contracts.
• Compliance note: EOR providers manage registration, tax remittance, and reporting obligations with the Revenue Service of Georgia. Explore Playroll's Employer of Record services.

Contractor Payment Platforms

• Best for: Paying Georgian-based independent contractors for project-based work.
• Pros: Simplified onboarding and payments, reduced administrative overhead.
• Limitations: Does not cover employee benefits or tax withholding; higher misclassification risk.
• Compliance note: Georgian labor laws enforce strict classification rules; contractor platforms do not assume employer obligations. Explore Playroll's Contractor Management Platform.

What Taxes Do I Need To Handle for Georgia Employees?

• Income Tax (Revenue Service of Georgia): Withheld from employee wages at a flat rate of 20%.
• Social Security Contributions: Employer contributions at 2% and employee contributions at 2%.
• Health Insurance Contributions: Included within social security contributions.

Use Playroll's payroll tax calculator to estimate your total employer costs in Georgia.

What Are the Biggest Compliance Risks When Paying Employees in Georgia?

• Worker misclassification (Revenue Service of Georgia): Misclassifying employees as contractors can lead to penalties and back payments under Georgian labor laws.
• Payroll tax errors (Revenue Service of Georgia): Incorrect tax withholdings can result in fines and audits by the tax authorities.
• Permanent establishment risk (Georgian Tax Code): Employing workers in Georgia may create a taxable presence, triggering corporate tax obligations.
• Late filings and reporting penalties (Revenue Service of Georgia): Missing deadlines for tax filings can incur significant fines.
• Wage law violations (Georgian Labor Code): Non-compliance with minimum wage or overtime laws can lead to legal claims and penalties.
• Currency compliance (National Bank of Georgia): Payments must be made in GEL, and failure to comply can result in penalties.

Pay Your Remote Employees in Georgia

Pay your remote employees compliantly in Georgia, without the heavy lifting. We support local payroll where you have your own entity or for international hires with Playroll’s EOR services.

• Accurate payroll processing: Gross-to-net processing, compliant payslips, and on-time payments — aligned with Georgian labor laws and monthly pay requirements.
• Taxes & contributions covered: Registrations, filings, and remittances to the Revenue Service of Georgia, ensuring compliance with all tax obligations.
• Built for local compliance: We handle statutory obligations and year-end reporting, including income statements and social security filings in Georgia.

Book a demo to run payroll in Georgia with confidence.