2024 Georgia Household Taxation and Employment Law Guide

When families hire a domestic worker, they often have many questions about taxes and payroll. To help clear up the confusion, we created this overview of Georgia nanny taxes as a helpful resource. Check out the information below about what HomePay can help you with.

Georgia Household Employer Checklist

We know you're busy. So here's a quick to-do list with links to more details below.

start of employment

During employment

Optional additional benefits for your employees

Termination of Employment

start of employment

Verify the caregiver's work authorization

Before your employee begins work, you must complete Form I-9 to certify that he or she is authorized to work in the United States. The I-9 is not sent to a government agency but must be presented to authorities if you are working as a nanny or a senior caregiver's employment eligibility is ever in question.

Set up EIN and state tax accounts

You must first apply for an EIN (Employee Identification Number) from the IRS. This will be used as your unique ID with both state and federal tax authorities. You can then open an account with your state tax authority.

Workers compensation

Home employers in Georgia are not required to carry workers' compensation insurance, but we encourage all families to do so. These policies cover medical expenses and lost wages if an employee suffers a work-related injury or illness. Get an instant quote and purchase a policy online or contact our partner Clarke White at 804-267-1210 or wcnanny@allrisks.com.

Employment posters

Families in Georgia are required to make their employees aware of their rights by sharing these posters.

During employment

File tax returns, remit taxes and manage correspondence

  • File state employment tax returns and remit state employer and employee taxes throughout the year.
  • Remit federal employer and employee taxes four times per year via Estimated Tax Payment Slip 1040-ES.
  • Prepare and file Schedule H with Form 1040 at the end of each year. Prepare Form W-2 and distribute it to each employee. File Form W-2, Copy A/Form W-3, with the Social Security Administration (SSA).
  • Manage ongoing state alerts and notifications (tax rates and labor laws may change at any time).

Minimum wage rate

The current minimum wage in Georgia is $7.25/hour.

Georgia Overtime Requirements

  • Employees living away from home must be paid 1.5 times their hourly rate for all hours worked over 40 in a workweek.
  • Employees living in the household must be paid overtime.
  • Overtime does not have to be paid if the work is done on a public holiday.

Optional additional benefits for your employees

Health insurance

Families with only one employee can contribute to their employee's health insurance premium and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer is required to pay taxes on this part of the compensation.

Families with 2 or more employees have 3 options:

  1. Set up an Individual Health Reimbursement Arrangement (ICHRA).
  2. Establish a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).
  3. Purchase a policy through SHOP (Small Business Health Options Program).

For more information about these options, visit our health insurance page.

Mileage reimbursement

The current federal mileage reimbursement rate is 67 cents per mile and only covers miles driven by your employee while on the job. There is no entitlement to reimbursement for commuter miles driven.

Termination of Employment

Obligation to terminate

Domestic employers in Georgia are required to provide their employees with a termination notice if they decide to terminate the employment relationship.

Management of unused PTO

Georgia residential employers are not required to pay employees for unused sick and/or vacation days.

Close your state payroll tax account(s)

State tax authorities expect you to file timely tax returns as long as your tax accounts are open – even if you report $0 in wages paid.

Keep payroll records

Household employers are required to retain payroll records for at least three years.