Are vacation, holiday, and sick pay for a nonresident who works in Georgia taxable for Georgia purposes?
• If a nonresident works in Georgia, he/she is taxed on all income that is received from an employer, including vacation, holiday, and sick pay, based on regulation 560-7-8-.01(b)(1), unless he/she falls under the 5% exception of Georgia code section 48-7-1(11)(A). Georgia regulation 560-7-8-.01(b)(1) is clear that for a nonresident the actual number of days worked in Georgia divided by the total days worked everywhere is the ratio that should be applied to determine Georgia source income. If the nonresident only works in Georgia, the ratio would be 100 percent and all income that is included in the W-2 that is received for past or future services rendered in Georgia, including vacation, holiday, and sick pay, would be taxable for Georgia purposes.
