Payroll in Georgia: from accrual to checked payment

Calculations use the organisation's Georgia profile and employee data. Leave and sick pay require a basis and inputs; a suggestion does not replace the responsible person's decision.

General information, not tax advice. Check deductions, pension participation, employment payments and deadlines with an accountant using rs.ge and the Georgian Labour Code.

What you need to start#

• A Georgian organisation and an employee assigned to it.
• Staff/payroll access and permission to change accruals and payments.
• Pay terms, employment dates, schedule and recorded working time.
• Approved leave, absences and calculation documents.
• Verified employee tax and pension information.

Open Payroll in staff management and select a month. Russian employment and tax instructions are not Georgian rules.

Step 1. Prepare the month's payroll#

1. Check organisation, employee and month.
2. Compare pay terms with the employee record and agreements.
3. Check schedule, timesheet, days/hours worked and absences.
4. Review additional pay, deductions and proposals requiring a decision.
5. Compare gross accruals, deductions and net payable.

Result: each material amount has an understandable purpose and calculation basis.

A Georgia profile does not prove identical deductions for everyone. Check status, exemptions and pension participation separately.

Step 2. Check leave pay#

The application may propose an accrual for approved leave. The user must apply the proposal.

1. Check leave dates and status.
2. Open the breakdown: calculation base, months used, working days and daily amount.
3. Compare the base with accrual history and employee terms.
4. Apply it if justified. Otherwise correct inputs or agree the calculation first.
5. Check the month's ordinary salary together with leave pay.

When leave pay is accrued, ordinary salary accounts for the leave so the same days are not paid twice as both worked days and leave. Check both parts.

Without history, a day norm or other required inputs, the application explains why it cannot calculate. This does not mean zero leave pay or permission not to pay.

Result: leave has a checked accrual and days are not paid twice.

Step 3. Resolve sick pay#

Open the sick-pay item in Needs attention. Check the document, absence and calculation inputs.

1. Check payable days and the calculation base.
2. Read missing-data warnings.
3. Choose a justified decision and enter required information.
4. Check the accrual and monthly total.

Without inputs, automatic accrual may be unavailable. Do not dismiss the issue arbitrarily: clarify the obligation and amount with an accountant.

Result: the decision has a defensible basis, not merely a dismissed warning.

Step 4. Check and record payment#

1. Check accruals, deductions, amounts already paid and the balance.
2. Compare the amount with the payment document and recipient details.
3. Make the actual bank or other permitted payment outside this calculation.
4. Record the completed payment with the correct date and amount.
5. Reconcile the employee balance and bank movement.

Result: accrual and actual payment remain distinct. A payment record is not bank confirmation of a transfer.

Do not mark a future payment as completed just to remove a debt. Check the balance after partial payment.

Reporting and pension information#

Georgian withholding calculations on payments use payment records. Monthly accruals and amounts paid in a period may differ.

The II-06 declaration and the pension reconciliation are built by the month of actual payment. If payments with dates are recorded in step 4, each payment of the month gets its own row with its date and share of the amount. Salary paid in the following month goes into that month's declaration; arrears from earlier months go into the month they are paid. Without recorded payments, the row stays in the payroll month with the date of the "paid" mark.

The form is marked "incomplete data" if the month's payroll is not approved, there is no payroll for the month while the previous month has one, the month is marked paid without recording the full amount, or the register of payments to individuals could not be read. By default the product does not apply the small-business relief of up to 6,000 GEL a year and says so in the form.

Small-business relief (Tax Code art. 94(4)). Salary that a person with small-business status paid to employees during a calendar year is not taxed at source within 6,000 GEL in total for all employees, not per employee. One of two conditions must hold: the sole proprietor was registered and received the status in the same year, or their total income for the previous year did not exceed 50,000 GEL. The limit is used up by the dates of actual payments: 4,800 GEL paid in April and 4,800 GEL in May — 4,800 is exempt in April, 1,200 in May, and 3,600 is taxed. In II-06 the payment stays in column 7, the relief goes to column 9, and the tax in column 12 is charged only on the excess. The exempt part is not part of the funded pension base, but the employee stays in the scheme: contributions on the excess are as usual. The employee does not declare this amount and does not pay 20% on it — it is not part of their aggregate income (Tax Code art. 100(4)(დ)); this does not cancel their obligations for other income.

Automatic calculation of this relief (the employer's annual limit by payment dates, tax and pension only on the excess, a confirmation flag in the company's tax data) is switched on separately for an organisation. Until it is on, tax is calculated at the general rate and the accountant applies the relief: keeps their own record of the used limit by payment dates, adjusts withholding and pension contributions, and corrects the II-06 rows before filing.

Advance before the accrual month. A salary advance paid before the month for which the salary is accrued (an advance on 30 November against the December payroll) belongs to the declaration of the payment month — November; the final December payroll does not repeat it. A loan to an employee and an accountable advance are not salary: do not record them as salary payments.

1. Check recipients, dates and amounts against supporting documents.
2. Check income tax and pension applicability for the employee.
3. Review missing fields, codes and form-specific cases with the accountant.
4. Prepare and submit the information in the appropriate external portal.
5. Keep submission and payment confirmations.

Calculated pension amounts are not an accepted pension-system register. A complete Georgian payroll bank-export and reporting cycle is not yet promised.

An approved payroll is transferred into the employer organization's book automatically; a correction arrives as a new revision and replaces the previous one. Do not enter accruals manually on top — it creates a duplicate (details).

When an employee leaves#

The application can remind you of the final-settlement deadline. Full automatic calculation of all termination amounts is not yet ready.

With the accountant, determine pay for time worked, unused leave, other amounts and deductions. Check the payment date and completion: a reminder does not mean the amount has been calculated.

Limitations#

• Missing employee details and history are not automatically replaced with reliable calculations.
• Accepting a proposal does not establish its legal validity for the responsible person.
• Accrual, transfer, book posting and filing are separate actions.
• A Russian interface does not make Russian forms applicable to Georgia.

Troubleshooting#

Frequently asked questions#

Does applying leave pay send money?#

No. It affects accruals. Payment and its recording are separate.

No history — can I enter zero?#

Missing data does not determine the obligation. Prepare inputs or a verified calculation with an accountant.

The termination date is set. Is settlement ready?#

No. A deadline reminder does not replace calculation of amounts.

Related sections#

• Staff
• Work schedule and timesheet
• Accounting in Georgia
• Month closing