West Virginia Withholding laws & HR compliance analysis

West Virginia Withholding: What you need to know

West Virginia law requires employers to withhold state income taxes from the wages of residents and certain nonresidents. Employers may calculate the amount that must be withheld from employees' paychecks using either the wage-bracket tables or the percentage method issued by the State Tax Department. Nonresidents who live in Kentucky, Maryland, Ohio, Pennsylvania, and Virginia are not subject to West Virginia withholding if they file Form IT-104NR, Certificate of Nonresidence, with their employer.
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Taxes must be withheld on “wages” as defined by the federal Internal Revenue Code. Compensation that is 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 or her employer.
Compensation subject to federal withholding is subject to West Virginia withholding. Compensation paid to residents of West Virginia for personal services is subject to withholding, whether the services were rendered in or outside West Virginia. Employer payments of sick pay are also subject to withholding tax. Employees may request that state income tax be withheld from any third-party sick pay.
Exclusions. Payments for some services, including the following, are exempt from withholding:
• Agricultural labor
• Domestic service in a private home
• Service in a local sorority or fraternity
• Deliveries to consumers by newspaper carriers under age 18
• Sales of newspapers and magazines if the vendor is paid based on sales
Additionally, the following are not subject to state income tax withholding: ...

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