Taxes must be withheld on “wages,” which include all cash and noncash payments for services performed by an employee. Virginia withholding law generally parallels federal law. The state tax code conforms to the Internal Revenue Code.
Exclusions. Payments for some services, including the following, are exempt from withholding:
• Agricultural service for a farmer-employer performed on the farm
• Service not in the course of the employer's trade or business as long as payment for the service is less than $50
• Religious service performed by ministers or members of religious orders