Payroll Virginia, Unique Aspects of Virginia Payroll Law and Practice

The Virginia State Agency that oversees thethe web at
collection and reporting of State income taxesVirginia does not allow compulsory direct deposit
deducted from payroll checks is:Virginia requires the following information on an
Department of Taxationemployee's pay stub:
Division of Income Tax Withholding- Gross and Net Earnings
P.O. Box 27264- straight time and overtime pay
Richmond, VA 23261-7264- hours worked
(804) 367-8037- purpose of deductions (upon request)
Virginia requires that you use Virginia form "VA-4,- itemized deductions
Employee's Virginia Income Tax WithholdingVirginia requires that employee be paid no less
Exemption Certificate" instead of a Federal W-4often than monthly- salaried employees and
Form for Virginia State Income Tax Withholding.hourly employees earning 150% of state's
Not all states allow salary reductions made underaverage weekly wage, if they agree; semimonthly
Section 125 cafeteria plans or 401(k) to beor biweekly-hourly employees.
treated in the same manner as the IRS codeIn Virginia there are no statutory requirements
allows. In Virginia cafeteria plans are not taxableconcerning the lag time between when the
for income tax calculation; not taxable forservices are performed and when the employee
unemployment insurance purposes. 401(k) planmust be paid.
deferrals are not taxable for income taxes;Virginia payroll law requires that involuntarily
taxable for unemployment purposes.terminated employees must be paid their final pay
In Virginia supplemental wages are required to beby their next regular payday and that voluntarily
aggregated for the state income tax withholdingterminated employees must be paid their final pay
calculation.by the next regular payday.
You must file your Virginia state W-2s byDeceased employee's wages of $15,000 must be
magnetic media if you are have at least 250paid to the surviving spouse; if none, distributees
employees and are required to file your federalno less than 60 days after death; no qualification
W-2s by magnetic media.of estate.
The Virginia State Unemployment InsuranceEscheat laws in Virginia require that unclaimed
Agency is:wages be paid over to the state after one year.
Virginia Employment CommissionThe employer is further required in Virginia to
Liability Sectionkeep a record of the wages abandoned and
P.O. Box 1358turned over to the state for a period of 5 years.
Richmond, VA 23218There is no provision in Virginia law concerning tip
(804) 786-1485credits against State minimum wage.
The State of Virginia taxable wage base forIn Virginia the payroll laws covering mandatory
unemployment purposes is wages up to $8000.00.rest or meal breaks are only that minors under 16
Virginia requires Magnetic media reporting ofmust have 30 minutes rest after five hours of
quarterly wage reporting if the employer has atwork.
least 250 employees that they are reporting thatThere is no provision in Virginia law concerning
quarter.record retention of wage and hour records
Unemployment records must be retained intherefore it is probably wise to follow FLSA
Virginia for a minimum period of four years. Thisguidelines.
information generally includes: name; social securityThe Virginia agency charged with enforcing Child
number; dates of hire, rehire and termination;Support Orders and laws is:
wages by period; payroll pay periods and payDivision of Child Support Enforcement
dates; date and circumstances of termination.Department of Social Services
The Virginia State Agency charged with enforcing730 E. Broad St.
the state wage and hour laws is:Richmond, VA 23219
Department of Labor and Industry(804) 692-1900
Labor and Employment Law Division*
13 South 13th St.Virginia has the following provisions for child
Richmond, VA 23219support deductions:
(804) 371-2327- When to start Withholding? Next payday after
The minimum wage in Virginia is $5.15 per hour.service.
There is also no general provision in Virginia State- When to send Payment? Within 4 days of
Law covering paying overtime in a non-FLSAPayday if EFT is used.
covered employer.- When to send Termination Notice? "Promptly"
Virginia State new hire reporting requirements are- Maximum Administrative Fee? $5 per payment.
that every employer must report every new hire- Withholding Limits? Federal Rules under CCPA.
and rehire. The employer must report thePlease note that this article is not updated for
federally required elements of:changes that can and will happen from time to
- Employee's nametime.
- Employee's addressCharles J. Read, CPA has been in the payroll,
- Employee's social security numberaccounting and tax business for 30 years,the last
- Employer's namefifteen in private practice. Mr. Read is the author
- Employers addressof "Tax and Accounting Issuesin Forming a New
- Employer's Federal Employer IdentificationBusiness."
Number (EIN)To find professional payroll services at a budget
This information must be reported within 20 daysprice go to paperless payroll company.
of the hiring or rehiring.For a full service payroll bureau with CPA's on
The information can be sent as a W4 orstaff visit .
equivalent by mail, fax or electronically.See an excerpt of Mr. Read's interviews from
There is no penalty for a late report in Virginia.William Shatner's "Heartbeat of America"television
The Virginia new hire-reporting agency can beshow on the web sites linked above.
reached at 800-979-9014 or 804-771-9733 or on