2019 Withholding Tax Guide

Income Tax Withholding Guide for Employers tax.

Revision date 08/22 2614086

Table of Contents

Introduction ..................................................................................................................................................1 New: Increase in Standard Deduction .............................................................................................................1 Important Due Date for Forms VA-6, W-2, and 1099 .......................................................................................1 Where to Get Assistance ................................................................................................................................1 Online File and Pay Options............................................................................................................................2 Registering for a Withholding Tax Account .....................................................................................................3

Who Must Register ..................................................................................................................................3 When to Register .....................................................................................................................................3 Filing Frequency Status ............................................................................................................................3 Your Virginia Account Number .................................................................................................................3 Registration Changes ...............................................................................................................................4 When to File ............................................................................................................................................4

Virginia Withholding Tax Forms and Due Dates...............................................................................................5 Who Must Withhold Virginia Income Tax........................................................................................................6

Who is an Employer .................................................................................................................................6 Conformity to Federal Definitions.............................................................................................................6 Courtesy Filers .........................................................................................................................................7 Who is an Employee.................................................................................................................................7

Taxable and Exempt Payments .......................................................................................................................7

Payments Subject to Withholding.............................................................................................................7 Payments Exempt from Withholding ........................................................................................................8 Payments to Nonresidents Under Reciprocity Agreements........................................................................8 Payments to Other Nonresidents..............................................................................................................9 Partially Exempt Employment ..................................................................................................................9

Employee Withholding Exemption Certificates................................................................................................9

Use of Exemption Certificates...................................................................................................................9 Filing Exemption Certificates ....................................................................................................................9 Claiming Exemptions..............................................................................................................................10 Additional Withholding..........................................................................................................................10 Exemption from Withholding .................................................................................................................10

How to File and Pay the Tax .........................................................................................................................11

Electronic Filing and Payment Requirements ..........................................................................................11 How Often to File...................................................................................................................................11 Semi-Weekly Filing.................................................................................................................................11

Monthly Filing........................................................................................................................................12 Quarterly Filing ......................................................................................................................................13 Seasonal Filing .......................................................................................................................................13 Annual Summary ...................................................................................................................................13

Record Keeping Requirements .....................................................................................................................15 How to Compute the Tax..............................................................................................................................15

Tax Tables and Formula..........................................................................................................................15 Using the Daily or Miscellaneous Withholding Table ...............................................................................15 Nonperiodic Payments ...........................................................................................................................16 Other Methods for Computing the Tax ...................................................................................................16

Withholding Tables for October 1, 2022 and After ........................................................................................17

Formula for Computing Tax to be Withheld ............................................................................................17

Introduction

This publication contains general information regarding the withholding of Virginia income tax from wages. You should use this booklet as a reference guide, not as a substitute for the complete tax law provided by the Code of Virginia or the regulations and public documents published by Virginia Tax.

New: Increase in Standard Deduction

Legislation enacted during the 2022 General Assembly session increases the standard deduction from $4,500 to $8,000 for single filers and from $9,000 to $16,000 for married filers filing jointly. The increase for Taxable Year 2022 is contingent on annual revenue growth of at least 5% for the 6-month period of July 2022 through December 2022. The increase for Taxable Year 2023 is contingent on annual revenue growth of at least 5% for the 12-month period of July 2022 through June 2023. If the 5% growth rate is not met for either taxable year, the standard deduction for that taxable year will be $7,500 for single individuals and $15,000 for married persons. Under this Act, the increase in the standard deduction is scheduled to sunset after Taxable Year 2025 and revert to the standard deduction amounts that applied prior to Taxable Year 2019: $3,000 for single filers and $6,000 for married couples filing jointly.

The standard deduction increases are effective October 1, 2022.

Important Due Date for Forms VA-6, W-2, and 1099

The due date for the Employer's Annual Summary of Virginia Income Tax Withheld (Form VA-6 or Form VA-6H) along with required wage statements (Forms W-2 and 1099) is January 31. If a business closes, these forms must be filed within 30 days after the last month in which wages were paid.

Where to Get Assistance

Visit our website at tax. to:

Download forms and instructions Get filing information Review answers to frequently asked questions File electronically using online services for Businesses Update registration information using online services for Businesses

Call Virginia Tax Customer Service for Businesses: 804.367.8037. Tenemos servicio disponible en Espa?ol.

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