Article
3 min read
Your Ultimate Guide to West Virginia Payroll
Author
Anja Simic
Published
August 22, 2023
Last Update
August 16, 2024
Table of Contents
Paying unemployment insurance
Withholding personal income tax from your West Virginia employees
Paying your West Virginia workers' compensation
Payroll tax due dates
Submission process for payroll taxes
Registering your company with the state
Simplify US payroll tax compliance with Deel
Key takeaways
- In West Virginia, employers are required to withhold personal income tax, workers' comp, and unemployment insurance.
- Employers can file and pay personal income tax through an online portal.
- Employers must determine if their business needs to be registered with the state.
Employers have to navigate various regulations and requirements to ensure proper payroll withholding in each US state. This guide serves as an introduction to what employers need to pay and withhold from payroll in Arizona, including unemployment insurance, personal income tax, and workers’ compensation.
Paying unemployment insurance
Unemployment insurance is a program established to provide temporary financial assistance to individuals who are unemployed through no fault of their own. As an employer in West Virginia, you are responsible for contributing to this program by paying unemployment insurance taxes. This financial contribution helps support eligible workers during periods of unemployment.
To fulfill your UI obligations, you can file and pay your unemployment insurance taxes through the state's online portal. This online portal streamlines the process, allowing you to navigate your UI responsibilities efficiently. For more information about the UI payment process, the West Virginia Department of Commerce website offers detailed guidance.
New businesses in West Virginia are assigned a SUI tax rate upon application, while existing businesses receive annual rate updates in December. For rate inquiries, businesses can contact the Status Determination Unit at ucrates@wv.gov.
Here are the state unemployment insurance tax rates as of January 2024:
| Wages Subject to Tax | Minimum Rate | Maximum Rate | New Employer Rate |
|---|---|---|---|
| $9,521 | 1.50% | 7.50% | 2.70% |
Withholding personal income tax from your West Virginia employees
In addition to federal taxes, West Virginia employers are required to withhold Personal Income Tax from their employees' wages. PIT is a tax on the income of West Virginia residents, and as an employer, it is your responsibility to deduct this tax from your employees' paychecks and remit it to the state.
The West Virginia Tax Department provides an online platform where you can file and pay the withheld PIT amounts. For more information on paying the withholding amount, the West Virginia Tax Department provides the step-by-step guide here.
The withholding tax rates vary based on filing status and income brackets. Here are the details presented in a table format:
| Filing Status | Income Range | Tax Rate |
|---|---|---|
| One Earner/One Job (N) | $0 - $10,000 | 3.0% |
| $10,000 - $25,000 | $300 + 4.0% of excess over $10,000 | |
| $25,000 - $40,000 | $900 + 4.5% of excess over $25,000 | |
| $40,000 - $60,000 | $1,575 + 6.0% of excess over $40,000 | |
| Over $60,000 | $2,775 + 6.5% of excess over $60,000 | |
| Two Earner/Two or More Jobs (O) | $0 - $6,000 | 3.0% |
| $6,000 - $15,000 | $180 + 4.0% of excess over $6,000 | |
| $15,000 - $24,000 | $540 + 4.5% of excess over $15,000 | |
| $24,000 - $36,000 | $945 + 6.0% of excess over $24,000 | |
| Over $36,000 | $1,665 + 6.5% of excess over $36,000 |
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Paying your West Virginia workers' compensation
Workers' Compensation is another employer obligation in West Virginia. This insurance program provides coverage for employees who suffer job-related injuries or illnesses. Even if you have just one employee in West Virginia, you are required to provide workers' compensation coverage.
To meet this requirement, you can purchase workers' compensation insurance from a qualified commercial carrier operating in the state. It's vital to ensure that your chosen insurance plan adheres to the state's regulations, and the West Virginia Insurance Commission offers guidance to assist you in finding a compliant carrier.
For 2024, the maximum rate usign state average weekly wage is:
| Frequency | Amount |
|---|---|
| Daily | $144.34 |
| Weekly | $1,010.41 |
| Monthly | $4,390.47 |
Payroll tax due dates
Employers must remit withheld taxes by the 15th day of the following month. Quarterly returns are due by the last day of the month after the quarter ends. Special rules apply for high-volume withholdings, including accelerated payments in June and electronic filing requirements for large employers.
Submission process for payroll taxes
Employers are required to deduct and remit personal income tax from employee wages to the Tax Division by the 15th day of the succeeding month. Quarterly and annual filings are also mandated, with electronic filing required for larger employers or those with 25 or more employees.
Registering your company with the state
Whether or not you need to register your company in the state after hiring your first West Virginia employee is determined on a case-by-case basis. Therefore, you will need to decide whether you are going to register with the state based on whether you are doing business in West Virginia as defined by the state’s laws. You may want to consult a lawyer in deciding whether you should register your company after hiring your West Virginia employee.
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FAQs
How do employers calculate withholding taxes in West Virginia?
Employers in West Virginia can calculate withholding taxes using either the Percentage Method or the Table Method. These methods help determine the amount of state income tax to withhold from employees' wages.
What are the state withholding tax rates for individuals in West Virginia?
The withholding tax rates in West Virginia vary based on filing status and income. Rates range from 3.0% to 6.5%, with specific brackets for single earners and those with multiple jobs.
Are there any special requirements for employers with significant withholding responsibilities?
Yes, employers with significant withholding responsibilities in West Virginia must adhere to specific requirements, such as making accelerated payments or using Electronic Funds Transfer for large tax liabilities.
What should employers do if they have 25 or more employees regarding payroll tax filing?
Employers with 25 or more employees are required to file their payroll taxes electronically in West Virginia, ensuring timely and efficient processing of tax documents.
Simplify US payroll tax compliance with Deel
While this guide provides essential information on West Virginia payroll taxes, payroll compliance and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel.
Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.
About the author
Anja Simic is a passionate advocate for remote work and leveling the playing field for diverse talents worldwide. She’s the Director of Content Marketing at Deel. As a content marketing professional, she thrives on shaping impactful narratives through different formats such as long-form content, webinars, and newsletters (to name a few).
