What payroll deductions are employers required to withhold?

Payroll Tax Deductions Employers Must Withhold in West Virginia

Employers operating in West Virginia need to manage payroll deductions carefully to comply with state and federal requirements. Proper withholding ensures smooth payroll operations and regulatory compliance.

Mandatory Payroll Deductions

• Federal Income Tax: Employers must withhold federal income tax based on employees' W-4 forms and IRS tax tables.
• Social Security Tax: Withhold 6.2% of wages up to the annual wage base limit, matching the amount as the employer.
• Medicare Tax: Withhold 1.45% of all wages, with an additional 0.9% on wages above the threshold for higher earners; employers match the 1.45% portion.
• West Virginia State Income Tax: Employers must withhold state income tax according to West Virginia tax withholding tables, reflecting employee exemptions and filing status.
• State Unemployment Insurance (SUI): While employers pay SUI taxes, withholding from employee wages is generally not required in West Virginia.

Additional Considerations

• Local Taxes: West Virginia does not impose local payroll taxes, simplifying withholding requirements.
• Voluntary Deductions: Employers may withhold for benefits, retirement plans, or wage garnishments as authorized by employees or court orders.
• Recordkeeping: Maintain accurate records of all withholdings and deposits to ensure compliance and ease of reporting.
• Reporting and Depositing: Timely deposit of withheld taxes to federal and state agencies is critical. Follow IRS and West Virginia State Tax Department schedules.

As of 2026, employers should regularly review West Virginia payroll tax tables and federal guidelines to stay current with any changes affecting withholding rates or thresholds.