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Payroll Service Providers - EFT Mandates

Virginia Code Requirements

  • Payroll Service Providers/Bulk Filers -- All withholding payments and returns must be filed electronically using eFormsBusiness iFile, or Web Upload. Payments made by ACH Credit transactions also meet this requirement. Banking information to be provided to your bank for ACH Transactions may be found in the Electronic Payment Guide. 
  • Monthly Liability greater than $20,000 -- Business taxpayers whose average monthly liability exceeds $20,000, but do not pay electronically as required are subject to penalties. The $20,000 average monthly tax liability applies to business taxpayers paying corporate income tax, retail sales and use tax, and withholding tax. This average monthly tax liability applies separately to each tax. Businesses with a $20,000 average monthly tax liability are notified by the Virginia Tax Department that they have reached this average monthly liability. 
  • Employers -- All employers are required to file their annual withholding statements, Form W-2, electronically with the Virginia Tax Department. Currently, the Web Upload online system supports electronic W-2 Filing and later this year, the eForms system will also support electronic W-2s. The Department  no longer accepts W-2s filed on CD, diskette or tape.

Electronic Submissions (EFT)

EFT payments eliminate VA-5 and VA-15 form filings.

All EFT Withholding filers must continue to file Form VA-6, annual reconciliation, along with W-2 forms reflecting Virginia Withholding. The Form VA-6 is due by February 28 each year, or within 30 days after the last payment of wages. W-2 and 1099-R data may be sent electronically using Web Upload. NOTE: W-2 and Form VA-6 information are two separate statements. Uploading W-2 data to Web Upload (or eForms later this year) will NOT automatically create your VA-6.

Semi-Weekly EFT filers must continue to file Form VA-16, Employer's Quarterly Payments Reconciliation and Return, to reconcile the payments that were made throughout the quarter.  Semi-Weekly filers must now submit the VA-16 electronically using eFormsBusiness iFile, or Web Upload.

Monthly and Quarterly EFT filers simply make an EFT payment for each period. When no payment is due because the tax liability is zero, a ZERO liability must be reported to the Tax Department. To do this, report a zero payment as an EFT transaction. Otherwise, you will be subject to late filing penalties.

Guidelines

Guidelines are available on the following topics:

Last Updated 12/10/2013 9:27

 

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