Employer Withholding 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.

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

Enter the number of personal exemptions for taxpayer, spouse and dependents only (do not include age 65 and over or blind exemptions)
Enter the number of age 65 and over and/or blind exemptions
Enter Gross Wages subject to withholding for a pay period

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 08/28/2014 12:04