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Payroll Virginia, Unique Aspects of Virginia Payroll Law and Practice


Virginia requires that you use Virginia form “VA-4, Employee’s Virginia Income Tax Withholding Exemption Certificate” instead of a Federal W-4 Form for Virginia State Income Tax Withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Virginia cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

In Virginia supplemental wages are required to be aggregated for the state income tax withholding calculation.

You must file your Virginia state W-2s by magnetic media if you are have at least 250 employees and are required to file your federal W-2s by magnetic media.

The Virginia State Unemployment Insurance Agency is:

Virginia Employment Commission
Liability Section
P.O. Box 1358
Richmond, VA 23218
(804) 786-1485

The State of Virginia taxable wage base for unemployment purposes is wages up to $8000.00.

Virginia requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

Unemployment records must be retained in Virginia for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Virginia State Agency charged with enforcing the state wage and hour laws is:

Department of Labor and Industry
Labor and Employment Law Division
13 South 13th St.
Richmond, VA 23219
(804) 371-2327
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