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Withholding Tax

Due Date Change

The due date for the Employer’s Annual Summary of Virginia Income Tax Withheld (Form VA-6 or Form VA6-H) along with required wage statements (Forms W-2 and 1099) has been changed to January 31.  This will allow for the faster and more secure processing of income tax refunds. 

 

Withholding Tax

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Withholding

If federal law requires an employer to withhold tax from any payment, we also require Virginia withholding. As an employer required to file withholding returns, you must register for withholding tax, file income tax withholding returns and pay the income tax to the Virginia Department of Taxation.

Employers must file the withholding returns whether or not there is withholding tax owed. The Commonwealth deems the amounts withheld as payment in trust for the employees' tax liabilities.

If your withholding liability is less than $100 per month, your withholding returns and tax payments are due quarterly. Click Quarterly for more information.

If your withholding liability is more than $100 but less than $1,000, your withholding returns and tax payments are due monthly. Click Monthly for more information.

If your withholding liability is $1,000. or more, your withholding returns and tax payments are due semi-weekly. Click Semi-weekly for more information.

Quarterly Filers

If your average tax liability is less than $100 per month, you will be assigned a quarterly filing status. Quarterly returns and payments are due on the last day of the month following the close of each quarter, as shown below. You may file your returns on Form VA-5 using our free online filing services:  eForms, Business iFile or Web Upload.

For the quarter ending ... File your return and payment by ...
March 31 April 30
June 30 July 31
September 30 October 31
December 31 January 31

Quarterly filers must also file Form VA-6, Employer's Annual Summary of Virginia Income Tax Withheld. The VA-6 is due to the Department by January 31 of the following calendar year, or within 30 days of the final 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.  Form VA-6 and all W-2 and 1099 forms must be submitted electronically.

Annual Filing Option for Household Employers (Nanny Tax) 

Employers of household service employees may elect to file and pay the Virginia income tax withheld from their employees’ salaries on an annual basis, at the same time they submit the employees’ Forms W-2 for the year. In order to qualify for the annual filing, the employment must consist exclusively of domestic service in the private home of the employer as defined in the Federal Employment Tax Regulations.  Employers may register for this filing option by using iReg online, or by using Form R-1H.  

Monthly Filers

If your average tax liability is more than $100, but less than $1,000 per month, you will be assigned a monthly filing status. You may file your returns on Form VA-5 using our free online filing services:  eForms, Business iFile or Web Upload.  The VA-5 is due on the 25th of each month (for example, the return for January is due February 25).

Monthly filers must also file Form VA-6, Employer's Annual Summary of Virginia Income Tax Withheld. The VA-6 is due to the Department by January 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.  Form VA-6 and all W-2 and 1099 forms must be submitted electronically.

Semi-Weekly Filers

If your average tax liability is more than $1,000 per month, you will be assigned a semi-weekly filing status. Your payments will be due within three banking days if the amount of Virginia income tax withheld exceeds $500 on any federal cutoff date for semi-weekly withholding. Federal cutoff dates are generally on Tuesday and Friday of each week, as shown in the table below. You must submit your payments on Form VA-15; this form and payment must be filed electronically.

If your liability exceeds $500 for a payday that falls on ... Make your semi-weekly payment no later than the following ...
Wednesday, Thursday or Friday Wednesday
Saturday, Sunday, Monday, or Tuesday Friday

Semi-weekly filers must file Form VA-16, Employer's Payments Quarterly Reconciliation and Return of Virginia Income Tax Withheld, for each quarter. The VA-16 must be filed electronically and is due by the end of the month following the close of the quarter:

For the quarter ending... File your return and payment by...
March 31 April 30
June 30 July 31
September 30 October 31
December 31 January 31

Semi-weekly filers must also file Form VA-6, Employer's Annual Summary of Virginia Income Tax Withheld. The VA-6 is due to the Department by January 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.  Form VA-6 and all W-2 and 1099 forms must be submitted electronically.

Employer's Annual or Final Summary of Virginia Income Tax Withheld

All filers must file Form VA-6,Employer's Annual Summary of Virginia Income Tax Withheld or Form VA-6H, Household Employer’s Annual Summary of Virginia Income Tax Withheld. The VA-6 and VA-6H are due to the Department by January 31 of the following calendar year, or within 30 days after the final payment of wages by your company. You may file your VA-6 or VA-6H using one our online services

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.  These forms must be submitted electronically.

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Electronic Filing and Payment Requirement

Every withholding tax filer is required to file all withholding tax returns and payments electronically.  Employers can meet these electronic filing and paying requirements without purchasing tax filing software. We offer several online services at no cost:

  • eForms is a free online service that allows you to file and pay tax returns by Debit Electronic Funds Transfer (EFT) and file W-2 statements. No separate sign up is required. Entering your tax return and banking information is as easy as or even easier than completing a paper return.  eForms also allows you to save your information and reuse it with each filing. 

  • Business iFile is a free online service that allows you to file returns and make payments by Debit EFT. Once enrolled in Business iFile, you enter (key) your tax information, bank information and schedule the date of the payment.

  • Web Upload is a free online service that allows you to file returns and W-2 wage statements and make payments by Debit EFT. Web Upload is “file driven” with the ability to save all return and payment information into a single file layout to submit to the Department.  The system supports Excel, fixed-width (column based) and delimited files. Once you sign-up for Web Upload, you create your file layout and submit your return, payment and bank information.

  • ACH Credit is used to make electronic payments directly into the state’s bank account. You must contact your financial institution and make arrangements to credit the state’s bank account with funds from your bank account. Your financial institution will advise you of ACH origination services offered and any associated costs.

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Electronic Filing Waiver

The Tax Commissioner has the authority to waive the requirement to file and/or pay electronically should this cause an undue hardship for the employer. Requests should be submitted in writing by completing the Employer Withholding Electronic Filing Waiver Request form.

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Penalty and Interest

Employers who fail to withhold, file withholding returns, or make withholding payments, as required, are subject to a penalty of 6 percent of the tax due for every month or part of a month that the return or payment is late. The maximum penalty is 30 percent of the tax due.

We impose a minimum penalty of $10.00 for either filing a return late or making a withholding payment late, and we apply the minimum penalty to the employer's account even when there is no tax due.

Note: Semi-weekly filers are also subject to a penalty if 90 percent of the total tax liability has not been paid in timely installments, generally, within three banking days of each federal cut off date.

We charge interest on any unpaid withholding tax due from the payment due date until we receive the tax payment. We compute interest at the rate established by the current Internal Revenue Service underpayment rate plus 2 percent.

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Last Updated 7/10/2014 16:38

 

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