Classifying Your Workers Correctly
Your company must decide whether each Georgia hire is an employee or an independent contractor using IRS common law tests focused on behavioral control, financial control, and the overall relationship. Georgia generally follows federal standards, so you should align your classifications with IRS guidance and federal Fair Labor Standards Act (FLSA) rules.
If you misclassify workers in Georgia, you risk back wages, unpaid overtime, tax assessments, interest, and penalties, and agencies may require you to correct past payroll tax filings. Review the IRS 20‑factor test, keep written contracts aligned with actual working conditions, and use resources like Playroll’s misclassification guide at https://www.playroll.com/blog/employee-misclassification-guide to reduce risk.
Verify Employee Work Eligibility
For every employee you hire in Georgia, you must complete federal Form I‑9 within 3 business days of the start date and inspect original identity and work authorization documents. You must retain I‑9s for at least 3 years after the hire date or 1 year after termination, whichever is later, and store them securely for possible inspection.
Georgia law requires most public employers and private employers with 11 or more employees seeking public contracts to use E‑Verify to confirm work authorization. Even when E‑Verify is not mandated, you should apply your chosen verification process consistently to avoid discrimination and keep clear records of all verification steps.
Create an Employee Onboarding Process
When onboarding employees in Georgia, you should issue a written offer letter outlining pay rate, exempt or nonexempt status, work schedule, and at‑will employment language. Collect federal Form W‑4, Georgia Form G‑4 for state income tax withholding, direct deposit details if used, and signed acknowledgments of your employee handbook and key policies.
Your company must also provide any required notices, such as workers’ compensation postings, unemployment insurance information, and anti‑discrimination notices, and report new hires to the Georgia New Hire Reporting Program within 10 days. Building a consistent onboarding checklist helps you stay compliant while giving you clearer visibility into the full cost of hiring in Georgia.
Pay Frequency & Methods
Georgia does not prescribe a specific pay frequency for most private employers, but you should set a regular schedule – such as weekly, biweekly, or semimonthly – and communicate it in writing. Final wages are generally due on the next regular payday, and if you delay or underpay, you may face wage claims, liquidated damages under federal law, and potential attorney fees.
Payment Methods (How You Can Pay)
In Georgia, you can choose among several payment methods as long as employees receive full wages on time and you provide an accurate wage statement each pay period.
- Payroll Check: You can pay employees by check as long as it is payable at full face value in cash or negotiable without fees at a bank or location you designate.
- Cash: You may pay wages in cash, but you must still keep detailed payroll records and give employees a written statement of hours worked and deductions.
- Direct Deposit (EFT): You can offer direct deposit in Georgia, but you should obtain written consent and provide an alternative method for employees who opt out.
- Paycards: You may use paycards if employees can access their full wages at least once per pay period without fees and you disclose terms clearly in advance.
- Outsourced Payroll: You can outsource payroll to a third‑party provider, but your company remains responsible for accurate wage payments, tax withholding, and filings.
When choosing payment methods in Georgia, consider employee preferences, banking access, and the need for clear documentation to defend against any wage or hour disputes.
When you hire employees in Georgia, you must withhold and remit federal and state payroll taxes and pay employer contributions on top of gross wages. You will need separate registrations with the Georgia Department of Revenue and the Georgia Department of Labor before you run your first payroll.
Employer Tax Contributions
As a Georgia employer, you are responsible for Social Security and Medicare matching, federal and state unemployment insurance, and any local obligations that may apply. You must file returns and pay these taxes on the schedules assigned by each agency, which are often monthly or quarterly.
Employee Payroll Tax Contributions
Your company must withhold federal income tax, Georgia state income tax, and the employee share of Social Security and Medicare from each paycheck. You must remit these withholdings on time and provide employees with Form W‑2 after year‑end.
Minimum Wage in Georgia
Georgia’s statutory minimum wage is $5.15 per hour, but it does not apply to many employers covered by the federal FLSA, so most Georgia employees must be paid at least the federal minimum wage of $7.25 per hour. Your company should confirm FLSA coverage – which generally applies if you have at least $500,000 in annual gross volume or engage in interstate commerce – and pay the higher applicable rate.
Working Hours in Georgia
Georgia does not set daily hour limits for most adults, so federal law governs issues like recordkeeping and child labor. You must track hours worked for nonexempt employees, pay for all hours suffered or permitted to work, and follow stricter rules for minors under 18 regarding school‑day and late‑night work.
Overtime in Georgia
Georgia relies on the federal FLSA for overtime, so nonexempt employees must receive at least 1.5 times their regular rate for hours worked over 40 in a workweek. To stay compliant, you should clearly define your fixed 7‑day workweek, correctly determine who is exempt, and include nondiscretionary bonuses and commissions when calculating the regular rate.
Georgia does not mandate broad paid leave programs, so benefits like paid time off, health insurance, and retirement plans are largely driven by federal law and market expectations. If you average 50 or more full‑time employees, the Affordable Care Act requires you to offer affordable, minimum‑value health coverage or face potential penalties, so you should budget benefits as part of your total compensation strategy.
Mandatory Leave Policies in Georgia
Paid Time Off in Georgia
Georgia law does not require you to offer paid vacation or general PTO, but once you adopt a policy, you must follow its terms consistently. You should clearly state how PTO accrues, whether carryover is allowed, and whether unused time is paid out at termination to avoid disputes.
Many Georgia employers offer 10–20 days of PTO per year to stay competitive, especially in professional and tech roles. Your company can use PTO as a retention tool by tying accrual to tenure and allowing flexible use for rest, personal needs, or occasional illness.
Maternity & Paternity Leave in Georgia
Georgia does not have a separate paid parental leave program for private employers, so you will generally rely on federal FMLA for eligible employees and your own paid leave policies. Under FMLA, qualifying employees may take up to 12 weeks of unpaid, job‑protected leave for birth, adoption, or foster placement if your company has at least 50 employees within 75 miles.
You can enhance your offer by providing paid parental leave or allowing parents to use accrued PTO to cover part of their bonding period. Make sure your parental leave policy is gender‑neutral and coordinated with short‑term disability benefits if you offer them.
Sick Leave in Georgia
Georgia does not require private employers to provide paid sick leave, but a state law requires certain employers that already offer sick leave to let employees use up to 5 days per year to care for immediate family members. You should review whether this “kin care” rule applies to your company and adjust your policy language accordingly.
Offering at least a modest bank of paid sick time – for example, 5–8 days per year – can reduce presenteeism and support public health. Clearly define when you may request medical documentation and how sick leave interacts with FMLA or other unpaid leave.
Military Leave in Georgia
Employees in Georgia who serve in the armed forces, National Guard, or reserves are protected by federal USERRA and state law, which require you to grant unpaid leave for qualifying service and reinstate them to their job or an equivalent role. You may not discriminate or retaliate against employees because of their military obligations.
Your company should create a written military leave policy that explains notice requirements, benefits continuation, and how you will handle differential pay if you choose to offer it. Keep copies of military orders and document all communications to ensure compliance.
Jury Duty in Georgia
Georgia law prohibits you from discharging, disciplining, or otherwise penalizing an employee for responding to a jury summons or serving on a jury. While you are not generally required to pay for jury duty time, many employers choose to provide some paid days to support civic participation.
You can require employees to provide a copy of the jury summons and to report back to work for any day or portion of a day they are excused early. Make sure your timekeeping system can record jury duty separately from regular work hours.
Voting Leave in Georgia
In Georgia, you must provide up to 2 hours off to vote in a primary or election if the employee’s work schedule does not allow at least 2 hours to vote before or after work. The law does not require this time to be paid, but you cannot interfere with or retaliate against employees for exercising their voting rights.
You may specify when during the workday employees can be absent to vote, so long as the time is reasonable. Communicate your voting leave procedure before major elections to avoid last‑minute confusion.
Bereavement Leave in Georgia
Georgia does not mandate bereavement leave for private employers, so any time off for a death in the family is governed by your internal policy or employment contracts. Many employers voluntarily offer 3–5 days of paid leave for the death of an immediate family member and less for extended relatives.
To manage expectations and ensure fairness, define who qualifies as an immediate family member, whether additional unpaid time may be approved, and what documentation, if any, you may request. A compassionate bereavement policy can support employee well‑being during difficult times.
Termination Process
Georgia is an at‑will employment state, so you or the employee may end the relationship at any time for any lawful reason, but you should still follow a consistent, documented process. Keep records of performance issues, policy violations, and prior warnings, and provide final pay on the next regular payday along with required notices such as unemployment insurance information.
Notice Period
Georgia law does not require advance notice of termination or resignation for most private employees, unless a contract or collective bargaining agreement says otherwise. Even without a legal mandate, giving reasonable notice when possible and conducting an exit interview can reduce disputes and protect your company’s reputation.
Severance
Severance pay is not required under Georgia law, but you may choose to offer it in layoffs or negotiated separations in exchange for a signed release of claims that complies with federal requirements. If you adopt a severance plan or policy, apply it consistently and clearly explain eligibility, calculation methods, and payment timing.
How do you set up payroll processing in Georgia?

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To set up payroll processing in Georgia, you first obtain federal and state tax IDs, then register with the Georgia Department of Revenue for withholding and the Georgia Department of Labor for unemployment insurance. After that, you choose a pay schedule, implement timekeeping, configure your payroll system to withhold federal and Georgia income tax plus FICA, and file and pay all returns on the schedules assigned to your company.
How does an Employer of Record help you hire in Georgia?

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An Employer of Record helps you hire in Georgia by acting as the legal employer for tax and compliance purposes while you manage the employee’s work. The EOR handles Georgia registrations, payroll, tax withholding, benefits administration, and required documentation so you can onboard quickly without forming a local entity or learning every state‑specific rule yourself.
Is there a minimum wage requirement for employees in Georgia?

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Yes, there is a minimum wage requirement for employees in Georgia, but most employers must follow the higher federal minimum wage of $7.25 per hour rather than the state’s $5.15 rate. If your business and employees are covered by the federal Fair Labor Standards Act, you should pay at least $7.25 and confirm whether any local or contractual obligations require higher pay.
How much does it cost to employ someone in Georgia?

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The cost to employ someone in Georgia includes gross wages, the employer share of Social Security and Medicare, federal and state unemployment insurance contributions, workers’ compensation premiums, and any benefits such as health insurance or retirement matches. You should also budget for paid time off, payroll service fees, and potential bonuses so you understand the full loaded cost of a Georgia employee, which is often 15–30% above base salary.


