Beautiful nature, friendly people, and college football. What else could a Mountaineer need? You and the other 100,000 small business owners can agree. West Virginia is definitely an awesome place to start your small business. But whether you bake a mean pepperoni roll in Huntington or serve up a turbo-charged cup of joe in Morgantown, there is one more thing that every small business owner can agree about: payroll taxes are definitely not awesome.
We want you to create an awesome small business without having to deal with payroll taxes, so we’ve designed a nifty payroll calculator that can figure out all of the federal and West Virginia state payroll taxes for you and your employees. All you have to do is input wage and W-4 information for each employee into the calculator, and it will do the rest of the work for you.
First of all, for Uncle Sam’s sake, let’s calculate federal payroll taxes. Here’s a quick rundown of the components that go into federal tax withholdings. For a more detailed explanation on all of the steps below, we invite you to head on over to our comprehensive step-by-step guide.
Now that we’re done with Uncle Sam, let’s look at West Virginia state income taxes. West Virginia charges a progressive income tax, broken down into five tax brackets. The 2020 tax rates range from 3% on the low end to 6.5% on the high end. Employees who make more than $60,000 will hit the highest tax bracket.
In addition, many cities in West Virginia charge a city service fee, so be sure to check with your city to determine the fee amount you have to withhold from your employees’ paychecks.
As an employer in West Virginia, you have to pay unemployment compensation to the state. The 2020 rates range from 1.5% to 8.5% on the first $12,000 in wages paid to each employee in a calendar year.
If you’re a new employer (congratulations on getting started!), you pay a flat rate of 2.7%.
You’ve done it! You’ve checked it off your to-do list so you can move onto the important things. Once each employee’s net pay is calculated (after taking deductions and withholdings into consideration), you’re in the clear.
All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and unemployment taxes. Those numbers can add up quickly!
You will need to fill out Form 941 to file federal taxes on a quarterly basis, and Form 940 to report your annual FUTA liabilities. You can pay taxes online using the EFTPS payment system. All the IRS employment tax due dates can be found here.
As if that wasn’t enough, here are some helpful links that can if you would like to learn more about West Virginia payroll taxes: