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 generally conforms to the Internal Revenue Code.
Exclusions. In addition to the federal exemptions, Virginia also excludes these payments from withholding (VA Code Sec. 58.1-460):
• Payments for certain filming activities conducted for less than 90 days;
• Payments from an individual retirement account or simplified employee pension; and
• Payments made to certain nonresident transportation employees.