Georgia State Tax Routine (GATX)

The Georgia State Tax Routine (GATX) Special Routine processing utilizes the following steps:

Line 1

Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).

Line 2

Determine the Standard Deduction Allowance (Minimum SDA in TAXP)

Line 3

Determine the Taxable Amount by subtracting Line 2 from Line 1.

Line 4

Determine the employee’s personal exemption credit*

  1. No of Personal Exemption (TAX) 

  2. Annual Exception Amount on TAXP

Line 5

Determine Wages subject to withholding by Subtracting employee’s personal exemption credit (Line 4) from Taxable Amount (Line 3).

Line 6

Using the Marginal Tax Rates (DEDX) entries for the Georgia State Tax Routine deduction, compute tax on the Taxable Amount.

Line 7

Divide the amount on Line 6 by the number of payroll periods in a year to determine the employee’s Georgia Withholding Tax for the pay period.

*Determine the Employee Personal Credit

  1. Take the Annual Exemption Amount on the Tax Parameters (TAXP) entry for the employee’s State Tax deduction and multiplied by the number of State Tax Allowances on the Employee Tax Parameter (TAX). 

Data Setup Considerations

Sites need to ensure that they have implemented the following Business Process/Data Setup Changes at their site prior to Georgia State Tax Routine.

  1. The Tax Parameters (TAXP) setup for Georgia.

  1. Personal Exemption Amount is captured as a part of Annual Exemption Amount.

  2. Standard Deduction Amount is captured as a part of minimum Standard Deduction.

  1. The Employee Tax Parameter (TAX) enrollment.

  1. The State Tax Allowance Field captures the employee’s claim for the number of exemptions. Note: The point 2 function if the MULTI_STATE_TAX parameter is set to N as part of the Application Parameter (APPCTRL) page, if the parameter is set to Y, then the system functions as per point 3.

  1. Employee enrolled in the State Tax Enrollment (TAXS) (Note: this only applies to employees enrolled in the State Tax Class (TAXCS) that includes a Georgia’s State Tax Deduction).

  2. The State Tax Allowance field captured the employee’s claim for the number of exemptions.