USA State Payroll Rates + Resources: State of Virginia: Filing State Income Taxes, W2s, and 1099s

Purpose

The purpose of this documentation is to outline the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of Virginia.

State Income Tax Withholding

Form VA-4, Commonwealth of Virginia Department of Taxation Personal Exemption Worksheet is the Virginia equivalent of the federal Form W-4. Every employee, on or before the date of commencement of employment, shall furnish his or her employer with a signed Virginia Personal Exemption Worksheet relating to exemptions and/or an additional amount to be withheld each pay period.  

Employers are required to keep copies of completed state VA-4 forms for their employees in their files. The forms serve as verification that state income taxes are being withheld according to the employee’s instructions and needs to be available for inspection if the state requests it. 

The Forms W-4 and VA-4 generally are valid until the employee provides a new version. However, employees who claim exemption from withholding must renew the exemption annually by filing new Forms W-4 or VA-4 by February 15th of each year. 

State Income Tax Withholding Filing and Deposits

Your filing status is determined by the average amount of income tax that you withhold each month. When you register your business for withholding tax, you are asked to estimate this figure so that the Department can assign a filing status.

Based on that information, the Department assigns a quarterly, monthly, semi-weekly, or seasonal filing status. The Department reviews each account annually and makes any necessary changes.

Notices of change in filing status are usually mailed during December of each year and become effective on January 1.

Frequency
Average Monthly Withholding Liability
Due
Form
Quarterly Reconciliation
Quarterly
Less than $100 per month
Last day of the month following the close of each quarter.
VA-5
--
Monthly
Over $100 but less than $1,000
25th day of the following month.
VA-5
--
Semi-Weekly
Over $1,000
Within 3 banking days when the amount of VA income tax withheld exceeds $500 (ie. Wed., Thurs., or Fri. makes payment no later than next Wed. / Sat., Sun., Mon., or Tues. makes payment no later than next Fri.) 
VA-15
VA-16

All employers are required to submit all returns and payments electronically. The Department offers three filing options: Use eForms, iFile, and Web Upload. Return and payment information is required to be submitted using these systems or by making payments by ACH Credit.

Employers must file withholding returns whether or not there is withholding tax owed.

W-2 and 1099 Forms 

All employer's must file Form VA-6, Employer's Annual Summary of Virginia Income Tax Withheld. The VA-6 is due to Virginia Tax by Jan. 31 of the following calendar year, or within 30 days after the last payment of wages by your company.

When you file Form VA-6, you must submit each federal Form W-2, W-2G, 1099, or 1099-R that shows Virginia income tax withheld. You must submit Form VA-6 and all W-2 and 1099 forms electronically using either Web Upload or eForms. See W-2 and 1099 Filing Guidelines.

If you have other federal series forms, such as the Forms W-2G or 1099-INT that reflect Virginia withholding, these must be submitted on paper.

While Virginia will accept records through the Combined Federal/State Filing Program (CF/SF) for Form 1099-R and/or Form 1099-MISC, it is recommended that you file your withholding information directly with the Department by their January 31st due date. 

For further details, see the Virginia Department of Taxation Income Tax Withholding Guide for Employers.