Tax Type
Withholding Taxes
Description
1988 Withholding Tax Legislative Changes
Topic
Withholding of Tax
Date Issued
01-01-1988
1988 Withholding Tax Legislative Changes
Senate Bill 312 (Chapter 899) amends Va. Code §58.1-472 to change the filing procedures for employers currently required to file Virginia withholding taxes on a quarter-monthly basis:
New Withholding Requirements
On July 1, 1988, the filing requirements for quarter-monthly withholding taxes will be changed. Under the new law, you are required to determine the amount of unreported Virginia income tax which has been withheld from your employees as of the close of every period used for federal withholding tax purposes. Under current federal regulations, this determination must be made eight times a month -- on the 3rd, 7th, 11th, 15th, 19th, 22nd, 25th and last day of each month. If on any of these days your unreported Virginia withholding tax liability is greater than $500 you must mail your Virginia Form VA-15 and payment within three banking days.
Virginia and Federal Periods Identical
In most cases you will be required to mail your Virginia withholding tax on the same day that you deposit your federal F.I.C.A. and withholding taxes.
Monthly Reconciliation Requirements Unchanged
For each calendar month you should file a Virginia Form VA-16 to reconcile the payments made during the month. The VA-16 is due on the 20th of the following month. However, if the month closes a calendar quarter (March, June, September and December) the VA-16 is due on the last day of the following month. If a VA-15 and payment are due within 3 days of a VA-16, you may make payment with the VA-16.
Coupon Booklets
The coupon booklet which you received in February should be used until the end of July. There are additional coupons in the back of the booklet that may be used if the new law requires you to make additional payments during July.
New coupon booklets will be mailed to you in June which should be used starting with your August payments. The new booklet will also have additional coupons in the back.
For Additional Information
If you have any questions or need additional coupons, please contact:
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- Taxpayer Assistance Section
Virginia Department of Taxation
P. O. Box 6-L
Richmond, VA 23282
Phone: (804) 367-8038
- Taxpayer Assistance Section
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Rulings of the Tax Commissioner