What Are Georgia’s 1099 Filing Requirements?
Navigate Georgia's specific 1099 reporting requirements. Learn the state's process for transmitting federal forms and the necessary data to ensure compliance.
The Internal Revenue Service (IRS) requires businesses to report certain payments made to non-employees using Form 1099. This federal form documents income like payments to independent contractors or for rent. While the 1099 is a federal document, individual states often have their own filing requirements. Businesses operating in Georgia must understand and adhere to the state’s specific rules for reporting this information to the Georgia Department of Revenue.
Determining Your Georgia Filing Obligation
A business’s requirement to file 1099s with the Georgia Department of Revenue depends on whether Georgia income tax was withheld. If a business withholds state income tax from payments reported on a Form 1099, it is mandatory to file a copy of that form with the state. If no Georgia tax was withheld, direct state filing is not required, as the IRS forwards the information to Georgia. An exception is Form 1099-K, which must be filed with the state even if no Georgia income tax was withheld.
The most common triggers for this filing requirement involve payments for services and rent. A business must issue a Form 1099-NEC for payments of $600 or more to an independent contractor for services. A Form 1099-MISC is required for rental payments of at least $600. The entity making the payment is responsible for filing, which includes corporations, partnerships, and sole proprietors who engage contractors or pay rent for business operations.
Information and Forms Needed for Filing
Before filing, a payer must collect the recipient’s full legal name, current address, and Taxpayer Identification Number (TIN). For an individual, the TIN is typically their Social Security Number (SSN), while for a business entity, it is an Employer Identification Number (EIN). The standard method for gathering this information is by having the recipient complete and sign an IRS Form W-9, Request for Taxpayer Identification Number and Certification.
The payer should obtain a completed W-9 from every vendor or contractor before any payment is made to ensure they have the necessary details for year-end reporting. The payer must also have their own information ready, including their business’s legal name, address, federal EIN, and Georgia Withholding Account Number.
In addition to the federal 1099 forms, Georgia requires the submission of a state-specific transmittal form, the Form G-1003, Withholding Income Statement Transmittal. The G-1003 acts as a summary for all the 1099s being filed with the state. On this form, the payer must report summary data, such as the total number of 1099 forms being transmitted and the total amount of payments reported.
The Georgia Filing Process
Georgia mandates that businesses file their 1099 forms and the accompanying G-1003 transmittal electronically. This is done through the Georgia Tax Center (GTC), the Department of Revenue’s online portal. Paper filing is not permitted for filers who are required to file electronically at the federal level, which includes those filing 10 or more forms in aggregate.
To begin the filing process, a business must have an active account on the Georgia Tax Center portal. Filers can log in or register for a new account. Once logged in, the user must navigate to the section for filing withholding-related returns to find the option for the G-1003 transmittal. The portal provides filers with different methods for submitting their 1099 data, including manual entry or uploading a formatted data file.
Payers must furnish copies of the Form 1099-NEC to recipients by January 31. The deadline for filing these forms along with the G-1003 with the Georgia Department of Revenue is also January 31. All other 1099 income statements are due on or before February 28. If a deadline falls on a weekend or holiday, the due date shifts to the next business day.
Penalties for Non-Compliance
Failure to comply with Georgia’s 1099 filing requirements can lead to financial penalties imposed by the Department of Revenue. The state has penalties for filing late, failing to file, or submitting returns that are incorrect or incomplete.
The penalty structure is based on a per-form fee, which can escalate depending on how late the filing is. A smaller penalty might be assessed for filings that are less than 30 days late, with a higher fee for those that are several months overdue. There is a maximum penalty amount that can be charged per year. These penalties are separate from any that may be imposed by the IRS for federal filing deficiencies.