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Depositing and Reporting Withheld Taxes: Virginia

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor


  • Virginia employers' income tax deposit and filing status depends on their average tax liability per month. All employers must make all deposits and file all returns electronically. See Deposit Thresholds and Schedules; Electronic Deposit Requirements.
  • Employers are liable for penalties for failing to withhold income tax and for failing to file returns and make payments as required. See Penalties.
  • All employers must electronically file an annual reconciliation return after the end of each calendar year. See Annual Reconciliation Forms and Filing Deadlines.
  • All employers must electronically file Forms W-2, Wage and Tax Statement, unless a waiver is granted. See Form W-2 Filing Requirements.
  • A Virginia employer that owns or licenses computerized income tax data is required to notify the Office of the Attorney General of security breaches involving taxpayer identification numbers and data on withheld taxes. See Data Breach Notification.