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Payroll Virginia, Unique Aspects of Virginia Payroll Law and Practice

The Virginia State Agency that oversees theThe information can be sent as a W4 or
collection and reporting of State incomeequivalent  by  mail,  fax or electronically.
taxes deducted from payroll checks
is:Department  of  TaxationThere is no penalty for a late report in
Virginia.The Virginia new hire-reporting
Division  of  Income  Tax  Withholdingagency can be reached at 800-979-9014 or
804-771-9733 or on the web at does not allow
P.O.  Box  27264compulsory direct depositVirginia requires
the following information on an employee's
Richmond,  VA  23261-7264pay  stub:Gross  and  Net  Earnings
(804)  367-8037straight  time  and  overtime  pay
requires that you use Virginia form "VA-4,hours  worked
Employee's Virginia Income Tax Withholding
Exemption Certificate" instead of a Federalpurpose  of  deductions  (upon  request)
W-4 Form for Virginia State Income Tax
Withholding.Not all states allow salaryitemized deductionsVirginia requires that
reductions made under Section 125 cafeteriaemployee be paid no less often than monthly-
plans or 401(k) to be treated in the samesalaried employees and hourly employees
manner as the IRS code allows. In Virginiaearning 150% of state's average weekly wage,
cafeteria plans are not taxable for incomeif they agree; semimonthly or biweekly-hourly
tax calculation; not taxable for unemploymentemployees.In Virginia there are no statutory
insurance purposes. 401(k) plan deferralsrequirements concerning the lag time between
are not taxable for income taxes; taxable forwhen the services are performed and when the
unemployment purposes.In Virginiaemployee must be paid.Virginia payroll law
supplemental wages are required to berequires that involuntarily terminated
aggregated for the state income taxemployees must be paid their final pay by
withholding calculation.You must file yourtheir next regular payday and that
Virginia state W-2s by magnetic media if youvoluntarily terminated employees must be paid
are have at least 250 employees and aretheir final pay by the next regular
required to file your federal W-2s bypayday.Deceased employee's wages of $15,000
magnetic media.The Virginia Statemust be paid to the surviving spouse; if
Unemployment Insurance Agency is:Virginianone, distributees no less than 60 days after
Employment  Commissiondeath; no qualification of estate.Escheat
laws in Virginia require that unclaimed wages
Liability  Sectionbe paid over to the state after one year.The
employer is further required in Virginia to
P.O.  Box  1358keep a record of the wages abandoned and
turned over to the state for a period of 5
Richmond,  VA  23218years.There is no provision in Virginia law
concerning tip credits against State minimum
(804)  786-1485wage.In Virginia the payroll laws covering
mandatory rest or meal breaks are only that
State of Virginia taxable wage base forminors under 16 must have 30 minutes rest
unemployment purposes is wages up toafter five hours of work.There is no
$8000.00.Virginia requires Magnetic mediaprovision in Virginia law concerning record
reporting of quarterly wage reporting if theretention of wage and hour records therefore
employer has at least 250 employees that theyit is probably wise to follow FLSA
are reporting that quarter.Unemploymentguidelines.The Virginia agency charged with
records must be retained in Virginia for aenforcing Child Support Orders and laws
minimum period of four years. Thisis:Division  of  Child  Support  Enforcement
information generally includes: name; social
security number; dates of hire, rehire andDepartment  of  Social  Services
termination; wages by period; payroll pay
periods and pay dates; date and circumstances730  E.  Broad  St.
of termination.The Virginia State Agency
charged with enforcing the state wage andRichmond,  VA  23219
hour laws is:Department of Labor and Industry
(804)  692-1900
Labor  and  Employment  Law  Division
* has the following provisions for child
13  South  13th  St.support deductions:When to start Withholding?
Next  payday  after  service.
Richmond,  VA  23219
When to send Payment? Within 4 days of
(804)  371-2327Payday  if  EFT  is  used.
minimum wage in Virginia is $5.15 perWhen to send Termination Notice?
hour.There is also no general provision in"Promptly"
Virginia State Law covering paying overtime
in a non-FLSA covered employer.Virginia StateMaximum Administrative Fee? $5 per
new hire reporting requirements are thatpayment.
every employer must report every new hire and
rehire. The employer must report theWithholding Limits? Federal Rules under
federally required elements of:Employee'sCCPA.
name
Please note that this article is not updated
Employee's  addressfor changes that can and will happen from
time to time.Charles J. Read, CPA has been in
Employee's  social  security  numberthe payroll, accounting and tax business for
30 years, the last fifteen in private
Employer's  namepractice. Mr. Read is the author of "How to
Start a New Business".For Professional
Employers  addressPayroll services at a Budget Price go to a
Paperless Payroll Company.Go to For a full
Employer's Federal Employer Identificationservice payroll service bureau with CPA's on
Number (EIN) This information must bestaff.See an excerpt of Mr. Read's interviews
reported within 20 days of the hiring orfrom William Shatners "Heartbeat of America"
rehiring.television show on the websites linked above.



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