Under Virginia's 2015 bulletin, when could a semiweekly employer request monthly withholding filing?

Subject

Exception to Virginia’s filing frequency for employer withholding.

Plain-English summary

Virginia's 2015 bulletin allowed certain small employers to request monthly filing instead of semiweekly withholding filing. Effective July 1, 2015, an otherwise semiweekly employer could seek a waiver if it had no more than five employees subject to Virginia income-tax withholding.

The employer had to submit a written request by December 1 before the requested waiver year, certify an average of no more than five affected employees during the current year, state that it did not foresee that average changing in the upcoming year, and explain the reasons for the waiver. An approved waiver lasted for the following calendar year and had to be requested again annually.

What this means for you

• This bulletin described a historical waiver process effective in 2015; confirm current rules and submission details.
• Count employees subject to Virginia withholding, not every employee regardless of withholding status.
• Submit the written request by the December 1 deadline for the following year.
• Reapply each year; the bulletin did not provide a permanent waiver.

Common questions

Q: Did an eligible employer automatically move to monthly filing?

A: No. The employer had to request a waiver, and the Department notified it in writing whether the request was granted.

Q: How long did an approved waiver last?

A: It allowed monthly returns and payments for the following calendar year, with a new request required for another year.

Citations and references

• House Bill 2307, Chapter 156, 2015 Acts of Assembly.
• Virginia Tax Bulletin 15-3.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 15-3-0

Original ruling text

TAX BULLETIN 15-3

Virginia Department of Taxation

June 2, 2015

I MPORTANT INFORMATION REGARDING AN EXCEPTION TO VIRGINIA’S FILING

FREQUENCY REQUIREMENTS FOR EMPLOYER WITHHOLDING

Effective July 1, 2015, an employer that is otherwise subject to the Virginia semi-weekly income tax withholding requirements may request a waiver from such requirements, if the employer has no more than five employees subject to Virginia income tax withholding. If the Tax Commissioner grants a waiver, the employer will be allowed to file withholding returns and pay the withholding tax on a monthly basis. This change is pursuant to legislation enacted by the 2015 Virginia General Assembly, House Bill 2307 (Chapter 156, 2015 Acts of Assembly).

Virginia Filing Requirements for Employer Withholding

The filing frequency for Virginia income tax withholding payments and returns is based on the following criteria:

If the employer’s average withholding liability is less than $100 per month, its withholding returns and tax payments are due quarterly.

If the employer’s average withholding liability is more than $100 but less than $1,000, its withholding returns and tax payments are due monthly.

If the employer’s average monthly withholding liability is $1,000 or more, its withholding returns and tax payments will be assigned a semi-weekly filing status. If the Virginia income tax withheld as of the close of any federal period is more than $500, a payment must be made within three banking days.

Instructions for Employers

Pursuant to 2015 House Bill 2307, certain employers may request a waiver from the Virginia semi-weekly filing requirement. To request such a waiver, an employer must have no more than five employees who are subject to Virginia income tax withholding and must submit a request in writing to the Department no later than December 1 of the year prior to the year for which a waiver is being requested. To meet the employment requirement, an employer must certify that it employed an average number of no more than five employees during the current year, and that it does not foresee a change in the average number of employees during the upcoming year. The request must also set forth in detail the reasons for the waiver. Waiver requests should be submitted to:

Virginia Department of Taxation

Employer Withholding Waiver Request

P.O. Box 1114

Richmond, Virginia 23218-1114

Or fax the completed form to (804) 367-2603.

The Department will notify the employer in writing whether such request has been granted. If a waiver is granted, the employer will be allowed to file withholding returns and pay the withholding tax on a monthly basis for the following calendar year. Waiver requests must be resubmitted each year by December 1 of the year prior to the year for which a waiver is being requested.

Further Instructions

For more information, please contact the Department at (804) 367-8037, or visit the Department’s website http://www.tax.virginia.gov .