West Virginia Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of West Virginia.
West Virginia uses a slightly higher minimum wage rate than the one required by the federal government in the Fair Labor Standards Act (FLSA). This increase is reflected in both the state's Tipped Minimum Wage rate and Actual Tip Credit rate.
When it comes to processing payroll, West Virginia-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
- Local Taxes
The below information was last updated January 30, 2024. It is not intended as legal or tax advice.
West Virginia Minimum Wage Rates
|
Wage Type |
West Virginia Rates |
Federal Rates |
|
Minimum Wage |
$11.00 |
$7.25 |
|
Tipped Minimum Wage |
$2.62 |
$2.13 |
|
Actual Tip Credit |
$6.13 |
$5.12 |
West Virginia State Income Tax (SIT) Rates
West Virginia's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:
| Filing Status | Income Tax Bracket [Over X] - [But not over Y] |
2024 Income Tax Rate |
| Single / Married (filed jointly) / Head of Household / Widow(er) with Dependent Child |
$0 - $10,000 | 0.00% |
| $10,000 - $25,000 | $236.00 + 3.15% of excess over $10,000 | |
| $25,000 - $40,000 | $708.50 + 3.54% of excess over $25,000 | |
| $40,000 - $60,000 | $1,239.50 + 4.72% of excess over $40,000 | |
| $60,000 or greater | $2,183.50 + 5.12% of excess over $60,000 | |
| Married (filed separately) | $0 - $5,000 | 0.00% |
| $5,000 - $12,500 | $118.00 + 3.15% of excess over $5,000 | |
| $12,500 - $20,000 | $354.25 + 3.54% of excess over $12,500 | |
| $20,000 - $30,000 | $691.75 + 4.72% of excess over $23,000 | |
| $30,000 or greater | $1,091.75 + 5.12% of excess over $30,000 |
|
Additional West Virginia SIT Details |
|
|
Supplemental Withholding Computation |
Add to the regular wages for the current or preceding payroll period and withhold based on the total amount. If the tax has already been withheld from the regular wages, withhold at the correct tax rate depending on the size of the recipient's annual gross income. |
|
Valid Filing Statuses |
|
|
Exemptions |
|
|
Form W-4 |
Form WV IT-104 |
|
Reconciliation Frequency |
Annual |
West Virginia State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
Employers are required to report the Standard Occupational Classification (SOC) code(s) and county name associated with each employee's work location on the employer's quarterly unemployment insurance reports.
|
West Virginia SUI Tax Details |
|
|
Taxable Wage Base |
$9,521 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
1.50% - 8.50% |
|
Rates for New Employers |
2.70% (includes a 1.00% surtax) |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
Yes; must be made within 30 days from the notice mailing date |
West Virginia State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. West Virginia, however, doesn't require employers to collect an SDI tax.
Miscellaneous West Virginia Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. West Virginia currently has reciprocal agreements with the following states:
Residents of these states must file Form WV IT-104 to verify their nonresidency.
Paid Sick Leave (PSL) Taxes
The state of West Virginia doesn't require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.
Paid Family and Medical Leave (PFML) Taxes
The state of West Virginia doesn't require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
Local Taxes
In addition to the state-wide taxes mentioned above, the following areas also have local service fee taxes:
West Virginia Employer Registration
The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Unemployment Compensation Division for unemployment tax topics.
|
Registration Details |
Department of Revenue |
Unemployment Compensation Division |
|
Phone |
(303) 558-3333 | (304) 558-2677 |
|
Online Registration |
One Stop Business Portal Employer Registration | |
| Registration Form | Form BUS-APP | Employer Initial Statement |
|
Registration Instructions |
Online and paper registration options are available. Account numbers will be issued in 1-2 weeks via the online process or 3-4 weeks via mail. | |
| Employer Self-Service Login | Tax Division Employer Login Page | Unemployment Compensation Employer Contribution System Login Page |
Additional West Virginia Payroll Tax Resources
- Secretary of State's Business Startup Wizard
- Department of Revenue's Tax Division Homepage
- Unemployment Tax Filing and Reporting
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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