Any employer who conducts business in Georgia has new compliance-related requirements to be considered in 2022. In order to determine the amount and type of tax credits that are available to employers, Georgia ranks all counties, census tracts, and special zones. Depending on what ranking your business falls in, it can significantly impact jobs and investment credits.
A list of these rankings is published by Georgia’s Department of Community Affairs (DCA) at the beginning of each calendar year. The published list highlights any area that is changing and could lead to lost benefits that are available from the previous year. However, any business that is within an affected location can submit a Notice of Intent (NOI) with DCA no later than March 31st. For example, if a business filed an NOI by March 31st, 2022, that business would preserve the 2021 ranking/status for 2022, 2023, and 2024. If you do not submit an NOI in a timely manner, any business with a changing ranking or status will only be allowed to claim credits at the 2022 ranking level.
If you plan to expand or invest in a business in the state of Georgia within the next three years, be sure to review the annual list and file an NOI if their location is within an area with benefits that are decreasing.
Tax Credits Available To Offset State Payroll Withholding Taxes
Depending on the location, Georgia continues to expand the availability of tax credits that can offset income tax liabilities and withholding taxes. Tier one counties, less developed census tracts, opportunity zones, and military zones are eligible for job credits. Tax years beginning January 1st, 2022, will also include investment credits for investments made in rural counties.
The Department of Revenue established a new procedure that must be carried out through the Georgia Tax Center to claim any credits against withholding tax. This procedure was put in place to speed up the application and approvals processes. Follow these important steps that are required to use these credits to offset withholding:
- Credit approval
- Claiming of credit on income tax return
- Notification of intent to utilize credit against withholding tax
- Offsetting payments of withholding tax
Outsource Your Payroll Administration To GMS
Payroll tax filing requirements are complex and ever-changing. As a business owner, it can be challenging to meet payroll tax deadlines and file taxes correctly, and failure to comply can result in high penalty fees. In addition, staying on top of regulations, deadlines, and filling out forms takes time away from your busy schedule. Stop spending time worrying about these HR functions and start spending time growing your business. Contact us today!