Georgia Payroll — Monthly PIT Withholding & Funded Pension

Confirm the employer is registered with the Revenue Service of Georgia (rs.ge) and has a valid TIN (9- or 11-digit). Establish each employee's pension-enrolment status — mandatory for all employees unless the individual was aged 60+ (men) or 55+ (women) before 1 January 2019 and exercised their voluntary opt-out under the Law on Funded Pension.

For each enrolled employee, apply the deterministic gross-to-net order: PIT = gross × 20% (flat, no tax-free allowance); employee funded pension = gross × 2% (withheld); net pay = gross × 0.78. For pension-exempt employees the net multiplier is 0.80. Separately compute the employer funded pension = gross × 2% (on top of gross), giving a total employer cash cost of gross × 1.02 per enrolled employee.

Remit the total PIT withheld across all employees to the Revenue Service of Georgia via rs.ge / eservices.rs.ge on the day wages are paid (or by close of the payment day at the latest). This is a hard deadline — PIT is not deferred to the 15th.

Transfer the combined employer 2% + withheld employee 2% funded pension contributions to the Pension Agency (LEPL Pension Fund, pensions.ge) alongside the payroll run. Both the employer share (additional cash cost) and the employee share (withheld from net pay) are remitted together. The State co-contribution (2% / 1% / 0% on the annual income scale) is added by the Government — it is not an employer cash outflow.

File the monthly withholding declaration via the Revenue Service e-services portal (eservices.rs.ge) by the 15th of the month following the payment month. This declaration covers PIT withheld on salaries (and any other withholding — dividends, interest, fees paid to non-residents). A nil declaration is still required if no salary was paid; failure to submit triggers a GEL 100/month penalty per declaration.

Maintain payroll records for each employee (working papers, bank transfer confirmations, declaration receipts) in line with the Tax Code of Georgia record-retention requirements. At year-end, prepare an annual earnings summary per employee and assess whether any individual whose income was not fully taxed at source is required to file an annual individual income tax declaration (deadline: 1 April of the following year).