Bulletin Number
VTB 96-5
Tax Type
Employer Income Tax Withholding
Description
Employer Withholding by Electronic Funds Transfer (EFT)
Topic
Withholding of Tax
Date Issued
09-27-1996
EMPLOYER WITHHOLDING BY ELECTRONIC FUNDS TRANSFER
(EFT)
(EFT)
Legislation enacted during the 1996 session of the General Assembly authorizes the Tax Commissioner to accept tax payments by Electronic Funds Transfer (EFT). The purpose of this bulletin is to explain the procedures and requirements relating to employers who voluntarily pay monthly or quarterly withholding by EFT.
Return Requirements
Employers who choose to pay monthly or quarterly withholding tax by EFT will not be required to file a Form VA-5, Employer's Return of Virginia Income Tax Withheld. Their EFT payment will serve as their return. When no EFT payment is due because the tax liability is zero, the employer must file the VA-S return to notify the Department that no EFT payment will be made for a particular period.
Regardless of whether monthly or quarterly filings are made, employers will still be required to file their annual Form VA-6, Employer's Annual or Final Summary of Virginia Income Tax Withheld on or before January 31st for the preceding calendar year, or within 30 days after the last payment of wages.
Due Dates
For an EFT payment to be considered timely, an EFT payment transaction must be initiated to ensure the availability of the funds to the Commonwealth on or before the tax due date. The fact that an employer chooses to pay by EFT does not change the filing date. If a due date falls on a weekend or bank holiday, the EFT payment is due on the next business day after the weekend or holiday. Employers whose EFT payments are not made by the due date may be subject to penalty and interest provisions.
If you are interested in making your employer withholding payments or other tax payments by EFT, please contact the Department using the address below to request the EFT Program Implementation Guide.
Virginia Department of Taxation
Registration Unit/EFT
P.O. Box 1114
Richmond, VA 23218-1114
Phone (804) 367-8037
Fax (804) 367-0985
Tax Bulletins