Virginia Payroll Instructions

Virginia has state payroll income tax withholding, which is calculated from some fairly simple "step" formulas. Withholding tables are unchanged in 2023, but the standard deduction increased. Previous revisions were in 1999 and 2010.

HINT: TurtleSoft provides free annual updates for US federal and Virginia state tax withholding rates.

Virginia State Withholding Instructions

To enter withholding information for a Virginia employee, follow these steps:

  1. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
  7. Enter a Virginia Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see Virginia packages in the list, you'll need to import 2022 tax info first.
  8. Click OK.

There is a special deduction available for workers who are blind, or over 65 years of age. To include it for an employee, follow these steps:

  1. Open the Payroll tab on the left, and choose Employees.
  2. Use the browser control at upper left to locate the employee.
  3. Click the Payroll Setup button.
  4. Enter the number of blind/over 65 exemptions into the Other Exemptions field.
  5. Click OK.

Virginia State Unemployment Tax Instructions

Virginia state unemployment tax rates are different for each employer, depending on their past hiring and layoff history. The tax is based on the first $8,000 of wages for each employee (2023 wage base amount, unchanged from last year).

To enter your Virginia SUTA tax rate into Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open the Virginia SUTA item. HINT: If you don't see Virginia SUTA in the list, you'll need to import your state's payroll info first.
  3. Click on the percentage field to the right of Calculation method, and enter your business SUTA tax rate.
  4. If the SUTA cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Virginia Marital Status

In each Employee account, enter one of the following Marital Status values:

State Tax Contacts

Website

Official State Lawn Ornament

Pink plastic Pentagon.