Virginia State Payroll Tax Filing:
New Hire Report, Withholding VA-5M & VA-5Q, and FC-20/21

Who Must File

All Virginia employers, including businesses, nonprofits, and government agencies, must file withholding forms if they have employees subject to Virginia state income tax.

Form Types

• Form VA-5Q – Quarterly Filing

  Who Files:

  • Employers whose average monthly withholding tax liability is less than $100.

  Criteria:

  • Assigned quarterly filing status.
  • File Form VA-5 and remit full payment by the last day of the month following the close of the quarter.
  • A return must be filed for each quarter, even if no tax is due.

• Form VA-5M – Monthly Filing

  Who Files:

  • Employers whose average monthly withholding tax liability is at least $100 but less than $1,000.

  Criteria:

  • Assigned monthly filing status.
  • File Form VA-5 and remit full payment by the 25th day of the following month.
  • A return must be filed for each month, even if no tax is due.

• Seasonal Filing

  Who Files:

  • Employers with seasonal employees only during certain months of the year.

  Criteria:

  • Required to file returns for the months designated when registering for an account.
  • Returns are filed on Form VA-5 and are due at the normal monthly filing dates.
  • Must file even if no tax is due.

• Form VA-6 – Annual Reconciliation

  Who Files:

  • All employers who filed VA-5 during the year.
  • Also used for final reconciliation if an employer ceases business or closes payroll.

  Purpose:

  • Reconciles total annual Virginia income tax withheld with the sums reported on VA-5 filings.
  • Ensures any underpayment or overpayment is accounted for.

What to Report

• Employer Information: Name, address, FEIN
• Total Wages Paid during the period.
• Total Virginia Income Tax Withheld
• Adjustments for prior overpayments or underpayments

When to File

The filing deadlines are as follows:

How to File

Virginia employers have several options to submit their withholding tax forms. Filing electronically is strongly recommended to ensure timely processing and compliance.

Penalties

Employers in Virginia must file and pay withholding taxes on time using Form VA-5M (Monthly Return of Virginia Income Tax Withheld) or Form VA-5Q (Quarterly Return of Virginia Income Tax Withheld). Missing deadlines or underpaying can lead to penalties and interest under Virginia Code § 2.2-614.1 and guidance from the Virginia Department of Taxation.

• If You File Late If you don’t file your VA-5M or VA-5Q withholding return by the due date, you may be charged a penalty of 6% of the tax due for each month (or part of a month) the return is late, up to a maximum of 30%. A minimum penalty of $10 applies even if no tax is due.
• If You Pay Late If you file your return on time but fail to pay the withheld tax by the due date, you’ll be charged a late payment penalty of 6% per month (up to a maximum of 30%) on the unpaid tax.
• Returned Payment Penalty If your payment is not honored by the bank, a $35 returned payment penalty may apply.

Virginia Withholding Tax Corrections

Follow the steps below to correct Form VA-5M (Monthly) or VA-5Q (Quarterly):

1. Access the Correct Form: Select the form that needs correction.
   • VA-5M (Monthly): Use the VA-5M eForm to correct monthly returns.
   • VA-5Q (Quarterly): Use the VA-5Q eForm to correct quarterly returns.
2. Indicate the Correction: On the form, check the box labeled “Amended Return” to indicate that this is a correction of a previously filed return.
3. Enter Corrected Information: Fill out the form with the corrected information.
4. Submit the Corrected Return: Submit the amended return electronically through Virginia’s eForms portal.
5. Payment of Additional Tax (if applicable): Select the form that needs correction.
   • Include Payment: If the corrected return indicates additional tax due, include payment using the appropriate voucher (VA-15 or VA-16)
   • Payment Methods: Payments can be made electronically through the eForms portal or by mail with the corresponding voucher.

Who Must File

All Virginia employers with one or more employees are required to file Form FC-20/21, which includes businesses of all sizes, nonprofit organizations, and government agencies.

Taxable Wage Base & Rates

The SUI tax is calculated based on a specific wage base and your assigned tax rate.

• Annual Wage Base

  Virginia requires UI tax on the first $8,000 of wages per employee per calendar year. Wages above this limit are not subject to state UI tax. Learn More

• Contribution Rate

  Your UI tax rate is assigned by VEC based on your experience rating. New employers are generally assigned a standard rate. Learn More

What to Report

On Form FC-20/21, employers must report:

• Employee Wages: Total wages paid to each employee during the quarter.
• Excess Wages: Wages exceeding $8,000 per employee in the calendar year.
• Tax Due: Multiply taxable wages by your assigned tax rate.
• Interest & Penalties: Interest is 1.5% per month on late payments; penalties include a $75 late filing fee if applicable.
• Employee Count: Total number of covered employees (full-time and part-time) who worked or received pay during the payroll period that includes the 12th of each month.

When to File

Form FC-20/21 is filed quarterly:

• Q1 (Jan-Mar): Due April 30
• Q2 (Apr-Jun): Due July 31
• Q3 (Jul-Sep): Due October 31
• Q4 (Oct-Dec): Due January 31 of the following year

How to File

Virginia employers have multiple options for filing Form FC-20/21:

Tax Payments

• Payments must be made to the Virginia Employment Commission and include your VEC account number.
• Do not send cash; checks or electronic payments are accepted.
• The form itself does not accept payments—use the separate remittance process as instructed by VEC.

Virginia Unemployment Insurance Penalties

In Virginia, employers are required to file quarterly unemployment tax and payroll reports using Forms FC-20 (Tax Report) and FC-21 (Payroll Report). Failure to file these forms on time or pay the associated taxes can result in penalties and
interest charges.

• Late Filing Penalty

  If the FC-20/FC-21 reports are filed after the due date, a $100 late filing penalty is assessed.

• Late Payment Penalty

  If the tax payment is not made by the due date, a $35 fee may be charged if the payment is declined by the financial institution.

• Interest Charges:

  Interest is assessed at a rate of 1.5% per month on any unpaid tax from the due date until the payment is made.

Corrections

• Virginia employers who have previously submitted Quarterly Tax and Payroll Reports (Forms FC-20 and FC-21) may need to correct errors such as incorrect wages, tax amounts, or employee records. To make amendments, the Combined Amended Quarterly Tax and Wage Report (Form FC-34) is used.