Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 140. Income Tax Withholding
4/18/2024

23VAC10-140-40. Other methods of withholding.

The Commissioner may grant permission to employers who do not desire to use the withholding tax tables provided in accordance with 23VAC10-140-30, to determine the amount of tax to be withheld by use of a method of withholding other than withholding tax tables, provided such method will withhold from each employee substantially the same amount of tax as would be withheld by use of the withholding tax tables. Employers who desire to determine the amount of tax to be withheld by a method other than by use of the withholding tax tables shall obtain permission from the Commissioner before the beginning of a payroll period for which the employer desires to withhold the tax by such other method. Applications to use such other method must be accompanied by evidence establishing the need for the use of such method.

The following formula has been approved for computing the amount of Virginia income tax to be withheld by employers who process their payrolls on electronic data processing equipment:

Legend

G = Gross pay for pay period

P = Pay periods per year

E = Total personal exemptions claimed on VA-4

A = Annualized taxable income

T = Tax to be withheld for pay period

W = Annualized tax to be withheld

Pay Period Conversion (P)

Annually

= 1

Semi-Monthly

= 24

Semi-Annually

= 2

Bi-Weekly

= 26

Quarterly

= 4

Weekly

= 52

Monthly

= 12

Daily

= 300

Formula

1. A = (G)P - [$650 + (600)E]

2. If A is:

W is:

Not over $3,000

2% of A

Over

But not
over

of excess
over

$ 3,000

$ 5,000

$ 60 + 3%

$ 3,000

$ 5,000

$12,000

$120 + 5%

$ 5,000

$12,000

...

$470 + 5 3/4%

$12,000

3. T = W / P

Example: John Q. Taxpayer claims his wife and three children for Virginia withholding purposes. He had $400 in gross wages for the SEMI-MONTHLY pay period.

1.

A = (G)P - [$650 + (600)E]

A = (400) 24 - [650 + (600)5]

A = 9,600 - (650 + 3,000)

A = 9,600 - 3,650 = 5,950

2.

W = 167.50

3.

W / P = T

167.50/24 = 6.98

$6.98

=

T

= tax to be withheld for pay period

Statutory Authority

§§ 58.1-203 and 58.1-463 of the Code of Virginia.

Historical Notes

Derived from VR630-6-463, eff. January 1, 1985.

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