Updated January 13, 2021
When you think about it, Virginia could technically be considered as the small business that kickstarted the big business of the United States of America. And as we all know from history books, the founding of Jamestown was no walk in the park. While the first settlers had to deal with the troubles of…you know…settling, you as a small business owner have your own troubles and triumphs. That’s what we’re here for. We want to help you check payroll taxes off your to-do list.
Our handy payroll tax calculator is all you need. Just enter income and W-4 information for each employee, and the calculator will take care of the rest.
First things first, we have to pay the federal government. Whether your employees are hourly or on salary, all federal taxes remain the same. We’ll go over the general breakdown here, but if you want more details, hop on over to our step-by-step guide.
All federal tax filings are due quarterly. Employers must complete the IRS Form 941 along with paying the payroll taxes. FUTA unemployment taxes must also be paid quarterly, but you only have the fill out the IRS Form 940 at the end of the year. Or, if you’d rather pay on an ongoing basis, you can use the EFTPS payment system.
All the employment tax filing due dates can be found here.
With four marginal tax brackets based upon taxable income, payroll taxes in Virginia are progressive. Tax rates range from 2.0% – 5.75%. Since the top tax bracket begins at just $17,000 in taxable income per year, most Virginia taxpayers will pay the top rate.
The good news is that location doesn’t matter, so there’s no need to worry about local taxes.
Virginia has State Unemployment Insurance (SUI), which ranges from 0.11% to 6.21%. The wage base for SUI is $8,000 of each employee’s taxable income. If you’re a new employer, your rate will be between 2.51% and 6.21%. If you’re a foreign contractor doing business in Virginia, your UI rate is 6.21%. Virginia SUI can be complicated, so if you have any questions, check out the FAQ section of the Virginia Employment Commission website.
The first step to doing big things with your small business is paying your employees. And now it’s time to cut those checks. As if you don’t have enough responsibility already, make sure you keep your portion of the FICA and FUTA payments in mind. Those contributions can add up come tax season if you don’t remit them regularly.
Here are a few additional resources that we think will help you. Take a look now and thank us later.
Tax Filing & Registration with the Virginia Employment Commission
Withholding Tax information from Virginia Tax
Income Tax Withholding Guide For Employers with the Virginia Department of Taxation