Federal & State Regulations | Employment taxes - Virginia

State Info

Summary of differences between federal and state regulations

Income tax withholding

If federal law requires an employer to hold tax from any payment, Virginia also requires withholding. As an employer required to filed withholding returns, you must register for withholding tax, file income tax withholding returns, and pay the income tax to the Department of Taxation.

Employers are responsible for timely payment and filing of their incurred withholding liability. Employers must also file the withholding forms whether or not there is withholding tax owed. The Commonwealth deems the amounts withheld as payment in trust for the employee's tax liability.

If your withholding liability for the month is less than $100.00, your withholding tax payments are due quarterly.

If your withholding liability for the month is $100.00 but less than $1,000.00, your withholding tax payments are due monthly.

If your withholding liability for the month is $1,000.00 or more, your withholding tax payments are due semiweekly.

Unemployment taxes

All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.

Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.

Wages subject to unemployment tax in this state equal $8,000.

Minimum and maximum rates in this state are 0.1 and 6.2%. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.