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Online Services |
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Withholding |
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Sales and Use
Tax |
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Food Tax Reduction Program
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Corporate |
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Accelerated Sales and
Use Tax |
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Litter |
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Tobacco Products
Tax |
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Where can I
get withholding tax returns?
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The department sends preprinted returns to all
registered employers. If you do not receive your preprinted returns, you should
contact our Customer Service Section at (804) 367-8037 to place an order for
duplicate returns. If you need blank returns, you may obtain them from any
office of the Department of Taxation. You can also order blank forms from our
Forms Unit at (804) 440-2541. Click here to go the tax forms
page. Top |
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How do I know
which return to use?
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The department assigns a filing status,
based on registration information or your actual payment record, and issues
forms accordingly. Quarterly, monthly, and seasonal filers use form VA-5; Semi-weekly filers
use Forms VA-15 and VA-16. Top
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Am I required to
file copies of federal Form 1099 with my annual summary?
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The department does not require the filing
of Form 1099, unless the form reflects Virginia income tax withheld. Generally,
the only form in the 1099 series that will reflect Virginia income tax withheld
is Form 1099-R. Top
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I have been
filing monthly withholding returns, but expect my tax liability to drop over the
next few months. Can I switch to the quarterly filing status?
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The department will monitor your account
and make any necessary changes in January of each year. In the meantime, you
should continue to file monthly returns. Top
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Is there a
penalty for filing the withholding forms late if there is no tax due?
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Virginia law imposes a minimum penalty of
$10 for late filing of employer withholding tax returns, even if there is no tax
due. Top
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My corporation
is a nonprofit tax-exempt organization under federal law. Do we have to withhold
Virginia income tax for our employees?
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As an employer, you are required
to withhold Virginia income tax from your employees' wages. The IRS tax
exemption only exempts you from corporation income tax and does not apply to
employment taxes. Top
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My company
has salaried sales representatives who work out of their homes in Virginia.
Since the company does not have an office of its own in Virginia, do we have to
withhold for these employees?
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Because employees are actually
performing services in the state, you will be required to withhold Virginia
income tax for them. Top
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I subcontracted
a lot of my work out to independent contractors. I received a letter from the
IRS saying that I am actually an employer under their rules. Does this apply to
Virginia, too?
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As long as you
are considered to have an employer-employee relationship with your
subcontractors under federal regulations, you are an employer for Virginia
purposes. Top
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I am planning to
open a beauty salon. Each operator will rent shop space and I will collect
commissions from the operators. Will the operators be considered employees or
independent contractors?
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Virginia law
conforms to the provisions of federal law with respect to whether an
employer-employee relationship exists between parties. You should contact the
IRS for a determination. If the IRS classifies you as an employer, you will also
be considered an employer for Virginia purposes. Top
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I own a company
that handles construction contracts in Virginia. We send North Carolina resident
employees into the state to do the construction work we need done. We have no
offices in Virginia. Are we required to withhold and pay income tax to Virginia?
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The company is required to withhold and pay
income tax to Virginia, because the company is paying wages to employees for
services performed in Virginia. Top
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My company
conducts all of its business in Maryland. Several of my employees are Virginia
residents who commute to Maryland to work each day. Am I required to withhold
and pay Virginia income tax for those employees?
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Your company is not paying wages
for services performed in Virginia, therefore, you are not required to file or
pay Virginia withholding. You may register as a courtesy filer to file and pay
income tax for those employees who live in Virginia. Top
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I am required
under federal law to report certain travel expense reimbursements as taxable
wages paid to my employees. Should these amounts also be reported as taxable
wages for Virginia? If so, should I withhold Virginia tax on these payments?
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Virginia law conforms to the
federal definition of wages. Therefore, any amounts reportable for federal
purposes are also reportable for Virginia purposes. Since the payments are
subject to federal withholding, Virginia income tax must also be withheld. Top
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Under federal
law, I am allowed to exclude group life insurance premium payments from taxable
wages. Does Virginia also allow these amounts to be excluded?
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The amounts excluded for federal
purposes would also be excluded for Virginia purposes. Top
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If my employees have completed
federal Forms W-4 for withholding exemptions, may I use that information rather
than having them complete Form VA-4?
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Virginia law differs from federal law with
respect to the computation of exemptions. Therefore, the W-4 information may not
be used for Virginia purposes. Virginia law requires the filing of a Virginia
exemption certificate, Form VA-4, for each employee. Top
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One of
my employees is allowed to claim 12 exemptions for federal purposes, based on
his itemized deductions. Can he also claim 12 exemptions for
Virginia?
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Virginia law makes no provision
to allow an employee to automatically claim additional exemptions based on
federal allowances. Your employee should write to the Department of Taxation at
Post Office Box 546, Richmond, Virginia 23218-0546, to request authorization to
claim additional exemptions. You may not allow an employee to claim additional
exemptions on Form VA-4 without
written authorization from the Department of Taxation. Top
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Some states
allow withholding to be computed as a percentage of the federal income tax
withheld. Does Virginia law allow this method?
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Virginia income
tax rates do not correspond to federal rates; therefore, this method would
result in an incorrect Virginia tax amount. Top
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How do I compute
withholding tax for wages paid after 1/1/05?
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Use the Employer Withholding Tax
Calculator or download Instructions and Tables for
wages paid on or after 1/1/2005. Top
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Does the
Department of Taxation administer the Unemployment Tax?
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No, it is
administered by the Virginia Employment Commission. You can reach them at (804)
786-4359 or (804) 786-1485.
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