If you operate a small business, you will need to know about both income tax withholding requirements and other tax issues in Virginia. For the average person, these issues can be complex. But you don’t have to handle it alone. Seek the legal guidance of an experienced Virginia tax attorney at Sodowsky Law Firm today. Call 703-505-4003 for a consultation.
Obtain an Employer Identification Number (EIN)
If you employ individuals outside of yourself, you may want to obtain an employer identification number or “EIN.”
An EIN is issued by the Internal Revenue Service (IRS) and serves as identification with the government for any employer or employment-related activities. In order to obtain an EIN, you must submit an application on the IRS website. You will likely obtain an EIN immediately. You will need an EIN to complete federal income tax withholding requirements.
Obtain a Tax Identification Number for the Commonwealth of Virginia
Virginia issues a separate tax ID number to employers who operate within the commonwealth. You must submit an application with the Virginia Department of Taxation (DOT) and also request a Virginia tax withholding account. You can do this online or via paper application. If you register online, you will immediately be assigned an account. However, if you use paper forms, you must submit a Form R-1 Business Registration Form by mail or fax. The Virginia DOT does not charge a fee to establish a tax ID number with the commonwealth. You will need a tax ID number with Virginia to accomplish income tax withholding requirements for your employees.
Employee Tax Withholding Forms
You should have all employees complete forms with an understanding of income tax withholding requirements. Both the Federal Form W-4 and Virginia Form VA-4 should be submitted to you upon hire. This will let you know how many exemptions the employee wants to apply to their tax withholdings. You can download these forms from the IRS and Virginia DOT websites.
If your employees have questions about income tax withholding requirements, you should direct them to the IRS or Virginia DOT websites. They may also seek a consultation with an experienced tax attorney.
Filing Federal and Commonwealth Tax Withholdings
Most employees in Virginia are paid semi-weekly, monthly, or quarterly. Virginia also recognizes annual payment schedules for household employers. Depending on how frequently you pay your employees and withhold taxes, you must submit tax payments and returns to the commonwealth. The frequency with which you make payments will also depend on how much you withhold from your employees’ wages.
What Are the Due Dates?
Income tax withholdings are due to Virginia according to the following dates:
- Semi-Weekly – Amounts withheld from pay on preceding Wednesday, Thursday, or Friday are due by Wednesday of the next week. Amounts withheld from pay on preceding Saturday, Sunday, Monday, or Tuesday are due by Friday of the next week.
- Monthly – Amounts withheld from monthly pay are due by the 25th of the next month.
- Quarterly – Amounts withheld quarterly are due by the last day of the month following the end of the prior quarter.
When holidays fall on these due dates, the amounts are due the next business day. You can file the payments electronically with the Virginia DOT via eForms, Business iFile, or Web Upload. Businesses that are experiencing a hardship may file a Form WH Employer Withholding Electronic Filing Waiver Request.
When filing income tax withholding requirements in paper format, you must complete the Form VA-15 Employer’s Voucher for Payment of Virginia Income Tax Withheld (Semi-Weekly) or Form VA-5 Employer’s Return of Virginia Income Tax Withheld (monthly and quarterly).
Businesses that pay semi-weekly must also file a quarterly Form VA-16 Employer’s Payments Quarterly Reconcilliation and Return of Virginia Income Tax Withheld. This must be done electronically according to the following schedule:
- First Quarter (January, February, and March) – Due by April 30
- Second Quarter (April, May, and June) – Due by July 31
- Third Quarter (July, August, and September) – Due by October 31
- Fourth Quarter (October, November, and December) – Due by January 31
Both the IRS and Virginia DOT have online forms and calculators that can help you calculate income tax withholding requirements.
A Virginia Tax Lawyer Can Help You With Income Tax Withholding Requirements
All companies should engage the help of a skilled tax lawyer to handle their complex tax issues. If you have questions about income tax withholding requirements, call Sodowsky Law Firm today at 703-505-4003.