Virginia State Payroll Taxes: Withholding, Registration and Filing

Virginia requires employers to withhold state income tax from employees' paychecks, in addition to employer-paid unemployment taxes. Employees complete Form VA-4, the Virginia Employee's Withholding Allowance Certificate, to calculate withholdings.

What are my state payroll tax obligations?

Virginia employers have two main obligations: withholding state income tax from employee wages, and paying state unemployment taxes. Employees complete the VA-4 so you can calculate the correct withholding amount.

Virginia has reciprocal agreements with Kentucky, Maryland, Pennsylvania, Washington, D.C., and West Virginia.

Local taxes

There are no local income taxes in Virginia.

How do I register as an employer?

As an employer located in Virginia, registration for both income withholding tax and unemployment insurance is done using Virginia's R-1 form, or online using VA Tax Online Services for Businesses. Register online to receive a VA business account number instantly.

If you are using VA Tax Online Services for Businesses for online registration, click "Are you a new Business? Register here" under New Users.

What are the payroll tax filing requirements?

Income tax withholding forms

Form	Purpose	Timing
VA-16	Employer Payments Quarterly Reconciliation and Return of Income Tax Withheld	Quarterly
VA-5	Employer Return of Income Tax Withholding (electronic only)	—
VA-15	Employer Voucher for Payment of Income Tax Withholding	—
VA-6	Employer Annual or Final Summary of Income Tax Withholding	Annually, by January 31

Note:

To view all of the above Virginia state income tax withholding forms, visit the Virginia Department of Taxation's forms page.
To file and pay online, see the Virginia Department of Taxation's eForms.
For more information on requirements for Virginia state withholding tax, see Virginia's Withholding Income Tax Guide for Employers.

Unemployment insurance forms

Form	Purpose	Timing
VEC-FC-20	Employer Quarterly Tax Report	Quarterly
VEC-FC-21	Employer Quarterly Payroll Report	Quarterly

Both are filed with the Virginia Employment Commission, and the forms plus instructions are available from the VEC. Online filing and payments can be done using the Virginia Employment Commission's Business iFile or Web Upload.

Anything else I need to know?

Virginia employers are exempt from withholding income taxes of their out-of-state employees' resident state when the out-of-state employee — who must be a resident of Washington, D.C., Kentucky, Maryland, Pennsylvania or West Virginia only — travels daily to work in Virginia and receives wages for services performed in Virginia for an employer within the geographical limits of Virginia.

Where can I find more info?

Virginia Department of Taxation — for more information on state income tax withholdings.
Virginia Employment Commission — for more information about unemployment insurance.

Frequently asked questions

What are Virginia's state payroll tax obligations?

Virginia requires employers to withhold state income tax from employees' paychecks in addition to paying employer-funded unemployment taxes. Employees complete Form VA-4, the Virginia Employee's Withholding Allowance Certificate, to calculate withholdings.

Which states have payroll tax reciprocity with Virginia?

Virginia has reciprocal agreements with Kentucky, Maryland, Pennsylvania, Washington, D.C., and West Virginia. Virginia employers are exempt from withholding the resident-state income tax of an out-of-state employee who is a resident of one of those jurisdictions, travels daily to work in Virginia, and receives wages for services performed in Virginia for an employer within Virginia's geographical limits.

How do I register as an employer in Virginia?

Registration for both income withholding tax and unemployment insurance is done using Virginia's R-1 form or online through VA Tax Online Services for Businesses. Registering online returns a Virginia business account number instantly.

Which payroll tax forms does Virginia require?

For income tax withholding, employers use Form VA-5 (Employer Return of Income Tax Withholding, electronic only), Form VA-15 (Employer Voucher for Payment of Income Tax Withholding), Form VA-16 (Employer Payments Quarterly Reconciliation and Return of Income Tax Withheld) and Form VA-6 (Employer Annual or Final Summary of Income Tax Withholding). For unemployment insurance, employers file Forms VEC-FC-20 and VEC-FC-21 quarterly with the Virginia Employment Commission.