Georgia Department of Revenue

What is House Bill (HB) 43?
HB 43 is legislation that was passed by the 2003 Georgia General Assembly that amended withholding tax remittance procedures governed by O.C.G.§§ 48-2-32 and 48-7-103. A “look-back period”, amount of tax withheld and payday are used to determine which employers this bill affects.

What is a “look-back period”?
For withholding purposes, a look-back period is defined as the 12-month period that ended the previous June 30.

What is a payday?
For withholding tax purposes, a payday is the date on an employee’s check or the first day an employee is able to tender the check for payment or other consideration, whichever comes first.

When did HB 43 become effective?
HB 43 became effective on April 1, 2004 and applies to all calendar quarters after that date.

What are the provisions of HB 43?
In general, HB 43 creates new withholding tax remittance schedules similar to those of the Internal Revenue Service. The bill establishes a semi-weekly remittance requirement and changes the electronic funds transfer (EFT) requirement for certain employers. It also establishes a “one-day rule” remittance requirement for employers who withhold over $100,000 for a pay period.

What is a “one-day rule”?
The “one-day rule” requires employers who withhold more than $100,000 for the payday to remit tax by the next banking day. This rule is applicable to all employers required to withhold tax and takes priority over all other remittance requirements.

What happens if a taxpayer meets the one-day rule requirement?
Employers who meet the one-day rule requirement immediately become semi-weekly payers. As such, they are subject to applicable payment and filing rules for the remainder of the current year and the entire following year.

What is the EFT remittance requirement imposed by HB 43?
Employers classified as semi-weekly payers or who trigger the one-day rule must remit tax withheld via EFT. This requirement will be strictly enforced; therefore, it is very important that affected employers adhere to this requirement.

Can employers classified as monthly, quarterly or annual payers remit tax withheld via EFT?
Yes. Employers who voluntarily remit payment via EFT must register to do so and follow the guidelines for timely payment. Late payments are subject to interest and penalty as prescribed in O.C.G.§§ 48-2-40 and 48-7-126.

How do employers register for EFT?
The EFT registration packet and additional information are available on our website at www.etax.dor.ga.gov/eft/index.aspx. Employers can also obtain information by contacting the EFT Unit at 404-417-2220, 1-800-659-1855, or via e-mail to doreft@dor.ga.gov.

Were filing requirements affected by HB 43?
Filing requirements for certain employers will change due to HB 43. Employers classified as semi-weekly payers or who trigger the one-day rule must complete and file Semi-weekly Form G-7/Schedule B. The form is due on or before the last day of the month following the end of the quarter. HB 43 did not affect filing requirements for employers classified as monthly, quarterly or annual payers.

What is the penalty if a taxpayer fails to adhere to the provisions of HB 43?
A penalty of 10% will be applied to the amount of tax due for any timely made payment that is not remitted via EFT. This penalty is in addition to other applicable penalties and interest prescribed under O.C.G.§§ 48-2-32 and 48-7-126.

How is the withholding threshold determined for employers who were not in business during the entire look-back period?
Any portion of the 12-month look-back period in which an employer did not have a withholding tax liability is treated as a zero liability in the calculation.

How is the look-back period determined if the employer used available job tax credits to reduce their withholding taxes during that time period?
The liability that was due prior to the application of any job tax credit is included in the aggregate look-back period calculation. For example, an employer with available job tax credits incurred a total withholding tax liability of $100,000 during the look-back period. However, the employer applied $75,000 in job tax credits that resulted in total withholding tax payments to the DOR of only $25,000. The employer’s total withholding tax liability used to determine their payer status is still $100,000.

If an employer pays different employees on different days (i.e. more than one payroll system), when should they remit their withholding taxes? How should an employer report these wages on their quarterly reports?
A due date is determined for each payroll system. For example, if an employer has employees that are paid on a weekly basis and employees that are paid semi-monthly, they have a separate remittance liability for each group of employees. All wages paid during a calendar quarter are still required to be reported on one Form G-7 for the employer. However, semi-weekly payers will also be required to complete Schedule B detailing the payday dates for the quarter.

How can employers obtain additional information about HB 43?
Employers can view HB 43 at www.legis.state.ga.us/legis/2003_04/search/hb43.htm or obtain additional information by visiting the Taxpayer Services Division home page at www.etax.dor.ga.gov/inctax/withholding/hb43taxchanges.aspx. Employers who need additional assistance may contact the Taxpayer Services Division at 404-417-3210 or via e-mail to taxpayer.services@dor.ga.gov.