End-to-end Virginia payroll compliance workflow covering VA-4 onboarding, Virginia income tax withholding (VA-5 monthly / VA-15 quarterly / semi-weekly EFT), annual reconciliation on VA-6 and VA-16 wage report, VEC unemployment tax on FC-20/FC-21, workers' compensation coverage, reciprocal-state employee handling, and W-2 issuance — for employers registered with both the Virginia Department of Taxation and the Virginia Employment Commission.
Confirm or establish the employer's registrations with the Virginia Department of Taxation (withholding account — 15-digit number) and the Virginia Employment Commission (VEC — 10-digit account number). Determine the initial withholding-deposit frequency tier (quarterly VA-15 if <$100/month avg; monthly VA-5 if $100–$999/month; semi-weekly EFT if $1,000+/month) and confirm workers' compensation coverage is in force once the 3-employee threshold is reached under Va. Code §65.2-101.
Collect a completed Form VA-4 (Virginia's state W-4 equivalent) from every new employee subject to Virginia withholding. Identify any employee who is a resident of DC, KY, MD, PA, or WV — these employees claim the reciprocal exemption on their VA-4 (line 5 exempt + residency state), and the employer must register as a withholding agent in the employee's resident state instead. Report all new hires to the Virginia New Hire Reporting Center within 20 days of hire (Va. Code §63.2-1946).
For each pay period, compute Virginia income tax withholding using the percentage-method tables in Virginia Withholding Tax Guide Pub. VA-15A: annualize gross wages, subtract the VA-4 personal exemption ($930/exemption) and applicable standard deduction ($8,500 single / $17,000 MFJ), apply the four-bracket table (2% to 5.75% over $17,000 Virginia taxable income), then divide by pay periods. Apply the flat 5.75% supplemental withholding rate to bonuses and commissions run in a separate payroll.
Remit Virginia income tax withholding on the assigned frequency: monthly employers file VA-5 by the 25th of the following month; quarterly employers file VA-15 by the last day of the month after quarter-end (April 30, July 31, October 31, January 31); semi-weekly depositors make EFT deposits on the federal Wed/Fri schedule and still file a quarterly VA-15 summary with Schedule VA-15-W deposit detail attached. All filing and payment is via iReg / Business iFile at www.tax.virginia.gov. File zero returns when no withholding is due — zero-return failure triggers a $25/quarter penalty.
Each calendar quarter, file Form FC-20 (Quarterly Tax Report — totals) and Form FC-21 (Quarterly Payroll Report — employee-by-employee detail) with the Virginia Employment Commission via the VEC Business iFile portal. Apply the experience-rated SUI contribution rate (range 0.10%–6.20% for 2025; new employers: 2.50% standard, 6.20% construction) to the $8,000-per-employee annual wage base. FC-20/FC-21 due dates: April 30 (Q1), July 31 (Q2), October 31 (Q3), January 31 (Q4). Separate from Department of Taxation filings — VEC account number is distinct.
By January 31, file Form VA-6 (Annual Withholding Reconciliation) reconciling total Virginia wages paid, total tax withheld, and total deposits made (sum of all VA-5/VA-15 payments) — any balance due is remitted with VA-6. Simultaneously transmit Form VA-16 (Employer's Annual Wage Report) via Web Upload at www.tax.virginia.gov in EFW2 format with Virginia RS records, carrying employee-level W-2 wage and withholding data. Issue W-2s to employees by January 31. Federal SSA W-3 submission does NOT satisfy the VA-16 requirement — a Virginia Web Upload confirmation number must be on file.
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