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Employer Withholding Tax Calculator

Use the withholding tax calculator to compute the amount of tax to be withheld from each of your employees' wages. This withholding formula is effective 01/01/2008.

Select the Pay Period:

 

 

 

 

 

From the employee's VA-4 or VA-4P, enter the following:

 


How Virginia Withholding Tax is Calculated

Key
G = Gross Pay for Pay Period P = Pay periods per year
A = Annualized gross pay E1 = Personal and Dependent Exemptions
T = Annualized taxable income E2 = Age 65 and Over & Blind Exemptions
WH = Tax to be withheld for pay period W = Annualized tax to be withheld
  1. G x P - ($3000+ (E1 x 930) + (E2 x 800)) = T

  2. Calculate W as follows:

    If T is: W is:
    Not over $3,000 2% of T
    Over But Not Over Then
    $3,000 $5,000 $60 + (3% of excess over $3,000)
    $5,000 $17,000 $120 + (5% of excess over $5,000)
    $17,000   $720 + (5.75% of excess over $17,000)
  3. W / P = WH

    Example

    John is married, with three dependent children. His spouse is blind. He claims a total of 6 exemptions:

    - 5 personal and dependent exemptions; one for himself, his wife, and one for each of his three children ( E1 exemptions); and

    - 1 additional exemption for "blind" for his spouse (E2 exemption).

    John is paid on a semimonthly basis, and his gross wages for this pay period were $2500.

    1. G x P - ($3000+ (E1 x 930) + (E2 x 800)) = T

      2500*24 - [3,000 + (5*930) +(1*800)]= T
      60,000 - [3000+4650+800] = T
      60,000 - 8450 = 51550

    2. W is $720 + 5.75% of amount over $17,000 ($51,550 - $17,000 = $34,550)

      5.75% of $34,550 = $1,986.63
      $720 + $1,986.63 = $2706.63

    3. W / P = WH

      $2,706.63 ÷ 24 = $112.78
      Tax to be withheld per pay period is $112.78

Last Updated 8/15/2011 14:35

 

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