Withholding Tax Questions and Answers

What is Withholding Tax?

A withholding tax is the amount an employer withholds from an employee's wages and pays directly to the government. The amount withheld is a credit against the income taxes the employee must pay during the year.

Compensation subject to withholding includes wages, commissions, fees, salaries, bonuses, vacation allowances, back pay, tips and retroactive wage increases. Wages also include any other kind of remuneration for or compensation attributable to services performed by an employee for his employer. Compensation subject to Federal withholding is subject to West Virginia withholding.

Who pays Withholding Tax?

Every employer making payment of any wage or salary subject to the West Virginia personal income tax is required to deduct and withhold the tax from such wages or salaries and remit the tax withheld to the State Tax Department.

The amount of tax to be withheld is to be determined on the basis of the employee’s withholding exemption certificate and the rates set forth herein. To determine the amount of tax to be withheld, the employer may use the Employer's Withholding Tax Tables.

When is it due?

Employers are required to remit the withheld tax on or before the 15th day of the succeeding month. Quarterly returns are due on or before the last day of the month following the end of the quarter.

Employers who withhold less than $600 annually or employ certain domestic and household employees will file the annual return and pay the withheld amount annually, and are not required to file a quarterly return. For these employers only, the due-date for the annual return is January 31 of the succeeding year for which the withholdings are deducted and withheld. Employers who have 25 employees or more are required to file and pay electronically.