West Virginia Hourly Paycheck Calculator
West Virginia employers, do payroll taxes make you want to run for the hills? Keep reading— we have you covered with the key information on West Virginia payroll taxes and paycheck rules below.
West Virginia state payroll taxes
West Virginia withholding tax
Employers in West Virginia must withhold state income tax from workers’ paychecks. The amount to take out depends on Form WV/IT-104, West Virginia Employee’s Withholding Exemption Certificate, and withholding tax tables.
Most employers must send the withheld tax to the State Tax Department monthly. The due date is by the 15th of the month.
Quarterly summary reports are also due by the last day of the month following the calendar quarter’s end using Form WV/IT-101Q, West Virginia Employer’s Quarterly Return of Income Tax Withheld.
Annual summary reports on Form WV/IT-103, West Virginia Withholding Year End Reconciliation, along with copies of each employee’s Form W-2, are due by January 31 for the previous year.
West Virginia unemployment tax
Most new employers will pay a rate of 2.7% for the first 36 months. After that, your rate will be calculated based on your experience with claims paid to your former workers. West Virginia’s unemployment tax is charged on the first $9,000 of each employee’s wage each year. Quarterly payments and wage reports are required.
You can find more information on West Virginia’s unemployment tax on the Workforce West Virginia unemployment webpage.
Other West Virginia payroll taxes and rules
- Minimum wage: The minimum wage in West Virginia is $8.75 per hour. There are exceptions where the federal minimum wage would apply.
- Overtime pay: With limited exceptions, overtime pay of at least 1.5 times the regular hourly rate must be paid for all hours worked over 40 in a workweek.
- Final paychecks: When an employee quits or is let go, final wages are due no later than the next regular payday.
- Workers’ Compensation insurance: Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
- New hire reporting: New hires or rehires need to be reported to the West Virginia New Hire Reporting Center within 14 days of hire.
- Voting leave: In certain circumstances, employers must provide up to three hours of paid leave for employees to vote.
Federal payroll taxes in West Virginia
Below are the key federal tax rules that you need to know as well.
Federal income tax (FIT)
Most employees need to pay their federal income taxes throughout the year since the US uses a pay-as-you-earn system. Unless an employee is exempt, employers must withhold this tax from each paycheck.
Have employees complete Form W-4, Employee’s Withholding Certificate, when they begin working for you. This form is critical to figuring out how much tax to take out. Information like the employee’s tax filing status and the number of dependents impacts how much tax is withheld from their pay. And if a worker is exempt from withholding, Form W-4 will show that.
With the worker’s pay amount and Form W-4 information, you can use the federal withholding tax tables to figure out the amount of tax to withhold, or you can use payroll software. Payroll software will make calculations automatically for each employee for each paycheck.
Federal unemployment tax (FUTA)
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but many employers only have to pay 0.6% each year.
Additional Medicare tax
The Additional Medicare tax has been around since 2013 and is charged to certain workers. Employers are responsible for withholding this tax on any employee earning more than $200,000 per year. The 2022 Additional Medicare tax rate is 0.9% on all wages over $200,000 each year.
Social Security and Medicare Taxes (FICA)
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
|Social Security, each pays||6.2% on the first $147,000 in wages in 2022|
|Medicare, each pays||1.45% on all wages|
Paying and filing federal payroll taxes
After you’ve calculated how much tax you owe, you’ll need to send payment to the IRS. Payment frequencies depend on how much tax is due. Monthly or semi-weekly payments are required for FIT, FICA, and Additional Medicare tax. However, next-day payments may be required for employers with large dollar payrolls.
All employers will need to send in a quarterly report on Form 941, Employer’s Quarterly Federal Tax Return. This form reconciles the amount of tax that you owe against how much tax you already paid.
FUTA is generally paid annually in January for the previous calendar year. There are times when quarterly FUTA payments are required. You’ll submit Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, with each payment.
If you don’t want to do this yourself, check out Gusto’s comprehensive payroll services.