Bill > SB474

This bill proposes to amend Georgia's state income tax laws to exclude overtime compensation from taxation for full-time employees paid by the hour, starting with taxable years beginning on or after January 1, 2027. This exemption applies to compensation for work exceeding 40 hours a week and overtime paid according to the federal Fair Labor Standards Act of 1938, with a specific provision for railway employees whose overtime is defined by collective bargaining agreements. Employers will be required to report the total amount of overtime compensation paid to hourly employees and the number of employees receiving it, either monthly or quarterly, along with their withholding tax returns, and the Department of Revenue is authorized to create rules for administering this new provision.

Budget and Finance

https://www.legis.ga.gov/legislation/72965