Payroll & Employment Guide: Georgia

Hiring in the United States

When hiring in the U.S., employers must identify the correct work location, classify workers properly and register with federal and state tax agencies before running payroll. Federal rules provide the baseline, but state and local laws often go further on wages and leave.

Key steps when hiring in the U.S.:

• Determine the employee’s work state and city — local laws may set higher minimum wages, paid-sick or family-leave entitlements and pay-transparency requirements.
• Classify each worker correctly as an employee or independent contractor; incorrect classification can trigger back taxes, penalties and benefits liabilities.
• Issue a written offer or contract that sets out pay, hours, exempt/non-exempt status, benefits and any probation terms.
• Collect Form W-4 for federal withholding plus any state withholding forms, and complete Form I-9 eligibility verification.
• Register as an employer with the IRS (EIN) and with each state tax and unemployment agency before payroll begins, or partner with an Employer of Record (EOR) if you lack a U.S. entity.

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Employee Benefits

Mandatory / Core Benefits:

• Paid annual leave
• Paid public holidays
• Maternity and paternity protections
• Basic health coverage through the national system (for residents)

Many international employers additionally offer:

• Private health insurance
• Meal or transport allowances
• Performance bonuses

Leave policies:

• Annual Leave: Minimum 24 working days per year.
• Unpaid Leave: Legal entitlement of 15 days per year upon employee request (with conditions).
• Sick Leave: Often governed by company policy; compensation can depend on contract and internal rules (the law sets general protections but not a highly structured social insurance scheme like the EU).
• Maternity Leave: Several months of leave with state allowances up to certain caps; employers may top up.
• Paternity Leave: Short leave entitlement; some employers add extra days as a perk.

Healthcare

Georgia has a Universal Health Care (UHC) system, providing basic medical coverage to most residents, financed from the state budget.

• Employers are not legally required to provide private health insurance but often do so to attract talent.

Retirement & Social Security

Georgia’s pension system includes a pension scheme with contributions from:

• Employee
• Employer
• State

Contributions are a small percentage of salary, designed to build retirement savings over time.

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Taxes in Georgia

Georgia is known for relatively simple tax rules.

• Personal income tax on employment is typically flat (e.g., around 20% in recent years).
• Employer and employee also contribute to the pension scheme.

Employees may have limited deductions compared to some EU countries, but overall administration is relatively straightforward.

Payroll in Georgia

• Payroll Frequency:Typically monthly
• Payroll Frequency:GEL

Employers must:

• Withhold income tax and pension contributions from salary
• Remit taxes and contributions to the Revenue Service
• Maintain payroll records and issue payslips

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Legal Regulations

The main law is the Labour Code of Georgia, supported by tax and pension legislation.

Total Employment Cost:

• Employer-side statutory contributions are modest compared with many European markets, so the uplift above gross salary is relatively low.

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Work Permits & Visas for Georgia

Many foreign nationals can enter Georgia visa-free for extended stays, but formal work authorisation may still be required if they are employed locally.

• Work and residence rules depend on nationality and duration of stay.
• Companies should confirm obligations with local immigration counsel.

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Employer of Record (EOR) in Georgia

Employer of Record (EOR) services in Georgia allow companies to hire employees quickly and compliantly without establishing a Georgian legal entity. The EOR becomes the official employer, taking on all statutory responsibilities while you manage day-to-day operations, performance, and workflow.

An Employer of Record (EOR) in Georgia can:

• Hire employees on your behalf using locally compliant Georgian employment contracts
• Draft and issue compliant employment agreements, ensuring alignment with Georgian Labour Code requirements
• Run monthly payroll, including salary calculations, tax withholding, and accurate reporting
• Handle tax and pension contributions (such as income tax and mandatory pension payments) to relevant authorities
• Manage HR documentation, employee onboarding, records, and ongoing administrative tasks
• Ensure full compliance with Georgian employment regulations and statutory obligations

PEO Services in Georgia
PEO services in Georgia are ideal for companies that already have a local Georgian entity but need support managing HR operations, payroll, and compliance with local employment regulations. A PEO functions as an extension of your HR team, helping you stay compliant while reducing administrative workload.

PEO services assist local entities with:

• HR and payroll administration, including employee records, onboarding, monthly payroll processing, and statutory reporting
• Compliance with the Georgian Labour Code, ensuring all employment practices, contracts, working hours, and leave policies meet legal requirements
• Advisory on local benefits and policies, helping you structure competitive benefits packages and stay aligned with Georgian employment standards
• Ongoing employee lifecycle support sfrom hiring to termination procedures and documentation

EOR in U.S.

Payroll Calculator

A Georgia payroll calculator helps you:

• Convert gross to net pay
• Estimate pension contributions
• Model total cost per hire

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