Payroll Virginia, Unique Aspects of Virginia Payroll Law and Practice

The Virginia State Agency that oversees the collectionThere is no penalty for a late report in Virginia.The
and reporting of State income taxes deducted fromVirginia new hire-reporting agency can be reached at
payroll checks is:Department of Taxation800-979-9014 or 804-771-9733 or on the web at does
Division of Income Tax Withholdingnot allow compulsory direct depositVirginia requires the
P.O. Box 27264following information on an employee's pay stub:Gross
Richmond, VA 23261-7264and Net Earnings
(804) 367-8037straight time and overtime pay
requires that you use Virginia form "VA-4, Employee'shours worked
Virginia Income Tax Withholding Exemption Certificate"purpose of deductions (upon request)
instead of a Federal W-4 Form for Virginia Stateitemized deductionsVirginia requires that employee be
Income Tax Withholding.Not all states allow salarypaid no less often than monthly- salaried employees
reductions made under Section 125 cafeteria plans orand hourly employees earning 150% of state's
401(k) to be treated in the same manner as the IRSaverage weekly wage, if they agree; semimonthly or
code allows. In Virginia cafeteria plans are not taxablebiweekly-hourly employees.In Virginia there are no
for income tax calculation; not taxable forstatutory requirements concerning the lag time
unemployment insurance purposes. 401(k) planbetween when the services are performed and when
deferrals are not taxable for income taxes; taxable forthe employee must be paid.Virginia payroll law requires
unemployment purposes.In Virginia supplementalthat involuntarily terminated employees must be paid
wages are required to be aggregated for the statetheir final pay by their next regular payday and that
income tax withholding calculation.You must file yourvoluntarily terminated employees must be paid their
Virginia state W-2s by magnetic media if you are havefinal pay by the next regular payday.Deceased
at least 250 employees and are required to file youremployee's wages of $15,000 must be paid to the
federal W-2s by magnetic media.The Virginia Statesurviving spouse; if none, distributees no less than 60
Unemployment Insurance Agency is:Virginiadays after death; no qualification of estate.Escheat
Employment Commissionlaws in Virginia require that unclaimed wages be paid
Liability Sectionover to the state after one year.The employer is
P.O. Box 1358further required in Virginia to keep a record of the
Richmond, VA 23218wages abandoned and turned over to the state for a
(804) 786-1485period of 5 years.There is no provision in Virginia law
State of Virginia taxable wage base forconcerning tip credits against State minimum wage.In
unemployment purposes is wages up toVirginia the payroll laws covering mandatory rest or
$8000.00.Virginia requires Magnetic media reporting ofmeal breaks are only that minors under 16 must have
quarterly wage reporting if the employer has at least30 minutes rest after five hours of work.There is no
250 employees that they are reporting thatprovision in Virginia law concerning record retention of
quarter.Unemployment records must be retained inwage and hour records therefore it is probably wise to
Virginia for a minimum period of four years. Thisfollow FLSA guidelines.The Virginia agency charged
information generally includes: name; social securitywith enforcing Child Support Orders and laws is:Division
number; dates of hire, rehire and termination; wages byof Child Support Enforcement
period; payroll pay periods and pay dates; date andDepartment of Social Services
circumstances of termination.The Virginia State730 E. Broad St.
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 support
13 South 13th St.deductions:When to start Withholding? Next payday
Richmond, VA 23219after service.
(804) 371-2327When to send Payment? Within 4 days of Payday if
minimum wage in Virginia is $5.15 per hour.There isEFT is used.
also no general provision in Virginia State Law coveringWhen to send Termination Notice? "Promptly"
paying overtime in a non-FLSA coveredMaximum Administrative Fee? $5 per payment.
employer.Virginia State new hire reporting requirementsWithholding Limits? Federal Rules under CCPA.
are that every employer must report every new hirePlease note that this article is not updated for
and rehire. The employer must report the federallychanges that can and will happen from time to
required elements of:Employee's nametime.Charles J. Read, CPA has been in the payroll,
Employee's addressaccounting and tax business for 30 years, the last
Employee's social security numberfifteen in private practice. Mr. Read is the author of
Employer's name"How to Start a New Business".For Professional
Employers addressPayroll services at a Budget Price go to a Paperless
Employer's Federal Employer Identification NumberPayroll Company.Go to For a full service payroll
(EIN) This information must be reported within 20 daysservice bureau with CPA's on staff.See an excerpt of
of the hiring or rehiring.Mr. Read's interviews from William Shatners
The information can be sent as a W4 or equivalent"Heartbeat of America" television show on the
by mail, fax or electronically.websites linked above.