Virginia employer tax information
About Virginia employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Virginia, you must be registered with the Virginia Department of Taxation and Virginia Employment Commission so we can pay and file your state taxes.
For Virginia Department of Taxation, you need your:
Virginia Department of Taxation Account Number (30 XXXXXXXXX F XXX)
For Virginia Employment Commission, you need your:
Virginia Employment Commission Account Number (10 digits)
The Virginia Employment Commission typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Virginia website or contact the VA Employment Commission directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Virginia payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
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Employer’s Quarterly Reconciliation and Return of Virginia Income Tax Withheld (VA-16): filed quarterly or paid per run
For semi-weekly VA-16 filers, the withholding payments are paid immediately per run. The VA-16 return is filed quarterly and appears in your Tax Forms in your Square Dashboard.
Employer’s Semi-Weekly Payment Voucher (VA-15): pays within 3 banking days from your pay run
Employer’s Return of Virginia Income Tax Withheld (VA-5): files and pays monthly or quarterly
Employer’s Annual or Final Summary of Virginia Income Tax Withheld Return (VA-6): files annually
Wage and Tax Statement (W-2): files annually
Unemployment Insurance Tax Payment: pays quarterly
Employer’s Quarterly Tax Report (VEC FC-20): files quarterly
Employer’s Quarterly Payroll Report (VEC FC-21): files quarterly
New Hire Report: files per new employee
Make Virginia payroll tax payments
To make Virginia withholding tax payments, you must be registered for a Virginia Tax Account Number with the Virginia Department of Taxation. For more information you can call the Virginia Department of Taxation at 804-367-8037.
For VA semi-weekly payments, your payments will be due within 3 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. You must submit your payments electronically using Form VA-15.
To register online, go to VATAX Online Services.
To register by mail or fax, mail or fax Form R-1, Virginia Department of Taxation Business Registration Form.
Every withholding tax filer is required to make withholding tax payments electronically.
To pay online, debit Electronic Funds Transfer (EFT) through eForms or Business iFile.
You can also pay via ACH Credit. There may be fees associated with this option.
To make Virginia unemployment tax payments, you must be registered for a Virginia State Unemployment Tax Number with the Virginia Employment Commission.
To register online, go to iFile. Visit their website for more information.
To register by mail, mail your Form VEC FC-27, Report to Determine Liability for State Unemployment Tax.
There are two ways to make an unemployment tax payment.
To pay online (recommended method), go to Business iFile.
To pay by mail, you must first mail out the E-file waiver form. Once you have received approval from the state, make a check payable with the Employer’s Quarterly Tax Report and mail it to:
VEC
P.O. Box 1174
Richmond, VA 23218-1174
If you have questions regarding your Virginia state unemployment taxes, email the VEC at [email protected] or call 804-786-7159.
Make unemployment insurance tax filings in Virginia
Unemployment tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file online (recommended method), go to the Virginia Employment Commission website.
To file by mail, you must first submit an E-filing waiver request form which needs to be renewed each year that you choose to file by mail. Download Form FC 21/20 and include the completed form with a check for any payments due. Reports filed by mail are considered filed as of the date they are placed in the mail (postmark date).
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date. If you are liable for unemployment insurance taxes for any part of a calendar year, you are liable for the entire year and must file quarterly reports for the entire year.
If you believe your business no longer meets the qualifications for unemployment insurance tax, you must notify the Virginia Employment Commission. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact Virginia Employment Commission at 804-786-1082 or 866-832-2363 or visit vec.virginia.gov.
Make payroll withholding tax filings
There are three possible filing and payment schedules for withholding taxes: semi-weekly, monthly and quarterly. Your payment frequency is determined by the amount of taxes you withhold.
There are three methods for filing your Form VA-5 (if you are a monthly or quarterly filer) or VA-16 (if you are a semi-weekly filer) online:
- Pick semi-weekly, monthly, or quarterly tax forms on Employer Withholding Tax E-forms.
- Log in to VATAX Online Services for Businesses.
- Use Web Upload.
For questions about withholding tax payments, contact the Virginia Department of Taxation at 804-367-8037 or visit www.tax.virginia.gov/businesses.
All withholding tax payers in Virginia must file annual reconciliation returns by January 31 for the preceding calendar year:
There are three methods for filing your Form VA-6 online:
- Use E-forms.
- Log in to VATAX Online Services for Businesses.
- Use Web Upload.
For questions about withholding tax payments, contact the Virginia Department of Taxation at 804-367-8037 or visit www.tax.virginia.gov/businesses.
W-2s are due by January 31 for the preceding calendar year. When filing Form VA-6, Employer’s Annual Summary of Virginia Income Tax Withheld, you must also file W-2s for all employees working in Virginia.
Use Web Upload to file your Form W-2s along with your Form VA-6.
For questions, contact the Virginia Department of Taxation at 804-367-8037.
Register as a new employer in Virginia
Register online as a new business. Your Department of Taxation Account Number will match your nine-digit Federal Employer Identification Number (FEIN). You are solely responsible for inputting the three-digit location code at the end of the number.
Register online with the Department of Taxation will automatically enroll you with the Virginia Employment Commission for state unemployment insurance taxes.
If you have issues with registration or cannot locate your Employment Commission Account Number once you have registered, call the Employment Commission: 804-786-7159.
The default filing frequency for new employers is quarterly. However you may have a semi-weekly or monthly frequency depending on your previous year’s annual payroll totals. To confirm your filing frequency, call the Department of Taxation at 804-367-8037.
The default tax rate for new employers varies each year. You should receive your Virginia Tax Rate after completing the online registration with the Department of Taxation and the Virginia Employment Commission.
If you are unsure of your tax rate, call the Employment Commission at 804-786-3061.
Find your Virginia tax account numbers
Your Department of Taxation Account Number is 15 digits and it includes your nine-digit Federal Employer Identification Number (FEIN). It will always start with 30, followed by your FEIN, the letter F and your three-digit location code at the end of the number. You are responsible solely for obtaining the three-digit location code from the state.
Sign in to Virginia Department of Taxation (VATAX) Online Services for Businesses to locate your number on any previously filed state tax return (VA-5 or VA-16 if you are a semi-weekly filer) and enter in the three-digit location code.
For assistance, call the Department of Taxation at 804-367-8037.
Sign in to VATAX Online Services for Businesses. Locate your ten-digit (XXXXXXXXXX) Employment Commission Account Number on any previously filed quarterly report (VEC-FC-21).
For assistance, call the Employment Commission at 804-786-1082.
This is based on your previous year’s annual payroll totals. For more information, go to the Virginia Tax website.
For assistance, call the Department of Taxation at 804-367-8037.
Look up your employer tax rate by signing in to the VATAX Online Services for Businesses. Your Employer Tax Rate can be found on the Tax Rate Notice sent by the Employment Commission each December.
For assistance, call the Employment Commission at 804-786-3061.
Although Square Payroll will assist in verifying your tax rates each quarter, given that you have provided a valid Virginia Employment Commission Account Number, you are responsible for ensuring that these rates are accurately reflected in your Tax info in your Square Dashboard.
Payroll reciprocal state agreements
A reciprocal agreement is an agreement between two states that allows employees that work in one state but live in another to request exemption from tax withholding in their employment state. This means that the employee would not have income tax withheld from their paycheck for their employment state; they would only pay income taxes to the state where they live.
A Non-Residency Certificate (or statement or declaration), is used to declare that an employee is a resident of a state which has a reciprocal agreement with their work state and therefore chooses to be exempt from withholding income tax in their work state. A non-resident employee qualifying for this exemption must complete and file this declaration with his or her employer as authorization for the employer to stop withholding state income taxes where the employee works. Employers should keep the non-residency certificate on file.
Virginia has reciprocal agreements with:
District of Columbia
Kentucky
Maryland
Pennsylvania
West Virginia
Non-resident employees should file Form VA-4.