Virginia Income Tax

[Christian]

I finally located this in my tax info. "Tax withheld at any point in the year is treated as if evenly paid throughout the year". This is for federal income tax withheld. Does this apply to Virginia income tax as well. I am unable to locate wording to this effect in the regulations so far. 

[Possi]

This has been hanging out there since Friday, and I don't know the answer. I would tell you to call Richmond. There isn't anything written in the books. 

If I created an official "substitute W2," I might input the state withholding assumption, but not without calling Richmond first. 

[Medlin Software, Dennis]

For paycheck income tax withholding, the employer's only obligation is to follow the employee's instructions as shown on their last valid W4 (or state equivalent).  If the employee manages their finances in a way, with valid withholding forms, which results in zero withholding, say until December, then the employer is not out of line.  (Note, the current federal W4 actually makes this easier than past federal W4 forms - because of not having to be blatantly inaccurate with allowances and longer.)

A very quick review of the VA4 does not appear to offer the same leeway the federal form does.  No provision for anything other than actual deductions/allowances.  There is also a note in the form's instructions which disallows claiming extra exemptions (such as the 99 gimmick).

So for VA, unless there are other exceptions available, there appears to be no way to "defer" VA withholding to the last check or two for the year.  This seems to include owner/employees who often ignore the fact they are an employee, have to be paid regularly for work done, at a reasonable wage, with all required deductions, etc.  These types of situations seem to almost always come from owner/employees who were not properly paying themselves during the year ("I take draws and even up at the end of the year" situations - the new 4b can be used with it being easy to claim the number is only "expected".)

[Christian]

Well I am going to call Richmond and hope for the best and while I have them on the phone to ask for the explanation for why they did not pay me my $61 tax refund from last year which explanation was promised but never received !!

[Medlin Software, Dennis]

Can of worms opened...

Why call?  Make sure to be correct going forward, and that all liabilities have been paid.  While maybe not technically correct, the odds are VA will be happy if all liabilities are paid.

If you are the employee, then submit a new valid VA4 to the employer (even if you are the employer too) and make sure the employer properly withholds.  If the employer balks, and you like the job, then you are likely looking at leaving things as is, making your own deposits, etc.  If this is a client you are dealing with, unless you are managing their payroll, it may be best just to accept the W2 on its face, and not use the can opener.