West Virginia Salary Paycheck Calculator
Owning a small business in West Virginia looks a lot like the Appalachian mountains—ebbing and flowing with subtle peaks and valleys. Although the mountain valleys are serene and relaxing, the business valley of payroll taxes can be turbulent. But it doesn’t have to be that way. Below, we’ve answered the most commonly asked questions about West Virginia payroll taxes to restore calm to you and your business.
State payroll taxes in West Virginia
How is state income tax withholding calculated in West Virginia?
Calculating how much to take out of workers’ paychecks isn’t as simple as multiplying their pay amount by a tax rate. You’ll need to get a Form WV/IT-104, West Virginia Employee’s Withholding Exemption Certificate, from each employee when they start working for you. The information your employee provides on this form will help you figure out how much tax to withhold.
Next, you’ll need to review West Virginia’s withholding tax tables. This, along with Form WV/IT-104 and your employee’s pay amount are the puzzle pieces required to calculate the withholding tax amount. Or you could use payroll software that will do the math for you.
How is withholding tax paid in West Virginia?
The tax you withhold is generally due to the State Tax Department by the 15th of the month for the preceding month. For example: March withholding tax is due no later than April 15.
You’ll also have some reports to file throughout the year.
Each calendar quarter, a summary report is due using Form WV/IT-101Q, West Virginia Employer’s Quarterly Return of Income Tax Withheld. This report is due no later than the last day of the month following the calendar quarter’s end. So the Q1 report is due no later than April 30.
Annual reports using Form WV/IT-103, West Virginia Withholding Year End Reconciliation, need to be filed by January 31 for the previous year. You’ll also need to send in copies of all employees’ Form W-2 with the annual report.
How do employers pay unemployment tax in West Virginia?
If you haven’t already registered your business with Workforce West Virginia, you’ll want to do that now.
West Virginia charges unemployment tax on the first $9,000 of each employee’s wages each year. Quarterly payments and summary reports are required. New employers in West Virginia generally pay a 2.7% tax rate for the first three years. After that, your rate is adjusted based on the amount of claims paid to your former employees.
West Virginia put together a helpful employer’s guide with all the details you need to know about unemployment tax.
What’s the salary threshold in West Virginia?
Because the state of West Virginia doesn’t have its own salary threshold, it adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
When do newly hired workers need to be reported to West Virginia?
When is Workers’ Compensation insurance required in West Virginia?
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.
Are West Virginia employers required to provide paid time off to employees?
The only type of paid leave that is mandatory in West Virginia is voting leave. In certain circumstances, employers may need to provide up to three hours of paid leave to allow employees to vote.
Federal payroll taxes in West Virginia
In addition to state taxes, you’ll need to comply with federal payroll tax obligations.
How do I calculate how much federal income tax to take out of my workers’ paychecks?
You can do manual calculations, or use a payroll provider to find out how much tax to withhold from your workers’ paychecks.
Regardless of your choice, you’ll need to get Form W-4, Employee’s Withholding Certificate, from each employee when they start working for you. This form provides crucial information, like tax filing status and the number of dependents, which is necessary to determine the withholding amount.
If you choose to do the math yourself, you’ll need federal withholding tables to complete the calculation.
How is federal unemployment tax calculated?
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.
How are Social Security and Medicare taxes paid?
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|
How is the Additional Medicare tax calculated?
Any employee earning more than $200,000 per year needs to have the Additional Medicare tax withheld from their paycheck. The 2022 rate is 0.9% on all wages over $200,000.
When do federal payroll taxes need to be paid?
How often you’ll make payments to the IRS depends on how much tax you owe. Semi-weekly or monthly payments are most common for federal income tax, FICA, and Additional Medicare tax. However, some employers will need to make next-day payments.
Regardless of how often you pay, each employer must submit a quarterly payroll tax return using Form 941, Employer’s Quarterly Federal Tax Return. This report summarizes what you owe and compares it to what you’ve already paid.
Federal unemployment tax is most often paid annually in January, but some employers will need to make quarterly payments if they owe more than $500. Federal unemployment tax requires Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, which is filed each time you make payment.
Be sure to pay your taxes on time to avoid penalties. Using a comprehensive payroll provider can ensure you don’t miss a deadline.