If you are an employer in Virginia who has recently hired an employee, you will need to register for payroll taxes with the Virginia Department of Taxation. This registration process ensures that you are in compliance with state tax laws and can properly withhold and remit taxes on behalf of your employees.
How Virginia Payroll Registration Works
There are 2 payroll tax setup tasks you may need to complete in Virginia to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Virginia agencies or use Mosey to do it.
Virginia Withholding Tax Setup for Corporation, LLC, LLP
Employers with employees in Virginia are required to register with Virginia Tax for an Employer Withholding Tax account. Generally, you are required to withhold state Personal Income Tax if you pay wages to at least one employee. When registering for Employer Withholding Tax you will also be able to register for Unemployment Insurance tax at the same time. Note: Virginia has Tax Reciprocity with several states, notably including DC and Maryland. If your employee resides in Maryland or DC but works in your Virginia office, they may ask you to withhold income tax for their home state instead of Virginia.
- Register for an Employer Withholding Tax Account
Register online for an Employer Withholding Tax account with VATAX by logging into VATAX Online Services for Businesses portal. Note: No action required if you have an existing Employer Withholding Tax account from previous tax registrations with VATAX.
Virginia Unemployment Insurance Setup for LLP, LLC, Corporation
You must register with the Virginia Employment Commission for Unemployment Insurance tax. You are generally required to pay Unemployment Insurance tax if you have at least $1,500 in quarterly payroll or have had an employee for at least 20 weeks in a calendar year. When registering for Unemployment Insurance tax you will also be able to register for Employer Withholding Tax at the same time. Note: 501(c)(3) organizations must register for unemployment insurance when they have four or more employees for any part of a day in 20 different weeks of a calendar year. 501(C)(3) organizations may elect to finance the cost of unemployment benefits on a reimbursable basis by filing a written election with the Commission.
- Register for an Unemployment Insurance Tax Account
Register online for an Unemployment Insurance account online with the Virginia Employment Commission by logging into VATAX Online Services for Businesses portal. Note: No action required if you have an existing Unemployment Insurance account from previous tax registrations with VATAX.
- Elect Reimbursable Payment Method (Nonprofits Only)
Nonprofits who would like to opt for the reimbursable payment method must mail a written election with to the Virginia Employment Commission, no later than 30 days prior to the beginning of any taxable year.
