How to File Virginia Form VA-5: Lines, Payment, and VA-6 Reconciliation

Virginia Form VA-5 is the employer’s return for Virginia income tax withheld from employee wages, filed electronically with the Virginia Department of Taxation on a quarterly, monthly, or semi-weekly schedule based on how much you withhold. The form itself has only six numbered lines plus your account information, but the filing cadence, payment mechanics, and year-end reconciliation are where employers get tripped up.

Who Files and How Often

Any employer paying wages to employees who work in Virginia must withhold state income tax and remit it on Form VA-5.1Virginia Department of Taxation. Virginia Form VA-5 Employer Withholding Return That covers Virginia residents wherever they work and nonresidents performing services in the Commonwealth, including government officers and elected officials.2Virginia Code Commission. Virginia Code 58.1-460 – Definitions Independent contractors are not employees for this purpose, so you don’t withhold Virginia income tax from their payments.

Virginia Tax assigns your filing frequency based on your withholding liability:3Virginia Tax. Withholding Tax

  • Quarterly, if you withhold less than $100 per month (under $300 per quarter). VA-5 is due the last day of the month after the quarter closes: April 30, July 31, October 31, and January 31.
  • Monthly, if you withhold from $100 to under $1,000 per month ($300 to $2,999 per quarter). VA-5 is due by the 25th of the following month.
  • Semi-weekly, if you withhold $1,000 or more per month ($3,000 or more per quarter). Deposit with Form VA-15 within three banking days after any federal cutoff date when accumulated withholding tops $500, and file a quarterly reconciliation on Form VA-16 by the end of the month after each quarter.

The semi-weekly calendar follows the federal one. Paydays Wednesday through Friday mean payment is due the following Wednesday; paydays Saturday through Tuesday mean payment is due the following Friday.4Virginia Tax. Income Tax Withholding Guide for Employers

Note the monthly due date. It’s the 25th, not the 15th. Employers used to the federal Form 941 deposit calendar sometimes assume Virginia matches it, but the state gives you an extra ten days.

Setting Up Your Withholding Account

You need a Virginia withholding tax account number before you can file. Register online through Virginia Tax’s business registration portal.5Virginia Tax. Register a Business in Virginia The same registration lets you sign up with the Virginia Employment Commission for unemployment tax. Once you’re registered, Virginia Tax issues an account number for each tax type and enrolls you automatically in a Business Account for online filing.

Your withholding account number begins with “30-” and is separate from your federal Employer Identification Number, though you’ll need both on every return.6Virginia Department of Taxation. Form VA-5 – Employer’s Return of Virginia Income Tax Withheld (Monthly) If you don’t have an EIN yet, apply through the IRS first.

Filling Out the Form

The VA-5 has an identification block at the top and six numbered lines below it.6Virginia Department of Taxation. Form VA-5 – Employer’s Return of Virginia Income Tax Withheld (Monthly)

Identification

Enter your Virginia Tax account number (the one starting with 30-), your federal EIN, and your three-digit account suffix. The suffix is the business location number; single-location filers usually use 001, while employers filing separately for multiple sites have a suffix for each. Add your business name and mailing address, then select the month or quarter and year the return covers. Check the Amended Return box if you’re correcting a prior VA-5 for the same period.

Tax Lines

  • Line 1, Virginia Income Tax Withheld. The total state income tax deducted from all employee wages during the reporting period, taken from your payroll records or payroll software.
  • Line 2, Previous Period(s) Adjustment. Enter a correction if you over- or under-withheld in an earlier period. Use a negative sign for overpayments.
  • Line 3, Adjustment Total. The eForm calculates this automatically (Line 1 plus or minus Line 2).
  • Line 4, Penalty. Any late-filing or late-payment penalty. Leave blank if you’re on time.
  • Line 5, Interest. Any interest owed on late payments. Leave blank if you’re current.
  • Line 6, Total Amount Due. Auto-calculated. This is what you pay.

Payment and Signature

Enter your bank routing and account numbers for the ACH debit. You can schedule the debit for any date up to the due date. Sign electronically by typing your name, choosing a title from the dropdown, and adding a phone number. If a preparer completed the return, you can authorize Virginia Tax to speak with them by checking the optional box and adding their details.

Submitting and Paying

All Virginia employers must file withholding returns and pay electronically.7Virginia Tax. Electronic Filing Requirements Virginia Tax offers three free channels:3Virginia Tax. Withholding Tax

  • eForms, a fillable online version of the VA-5 on the Virginia Tax website. Simplest for filing a single return.
  • Business Account at business.tax.virginia.gov, the full portal for filing, paying, viewing history, and managing your account.
  • Web Upload, for employers or payroll providers submitting return data in bulk.

Payment moves either by ACH debit (Virginia pulls from your bank) or ACH credit (you push from your bank). Payroll service providers acting for 100 or more taxpayers must use ACH credit.7Virginia Tax. Electronic Filing Requirements

If your bank rejects the payment, Virginia Tax can assess a $35 returned-payment fee under Code of Virginia §2.2-614.1.6Virginia Department of Taxation. Form VA-5 – Employer’s Return of Virginia Income Tax Withheld (Monthly) Confirm your routing and account numbers before submitting; that’s where most avoidable fees come from.

The Year-End VA-6 Reconciliation

Filing periodic VA-5s isn’t the whole job. By January 31 of the following year, every employer must also file Form VA-6, the annual summary of Virginia income tax withheld, along with electronic copies of all W-2s and 1099s issued.8Virginia Department of Taxation. Form VA-6 – Employer’s Annual or Final Summary of Virginia Income Tax Withheld The VA-6 reconciles what you reported on your VA-5s during the year against what’s on the individual W-2s. If your business closes mid-year, the VA-6 is due within 30 days after the final wage payment.

Virginia Tax matches your VA-6 totals against the VA-5 filings already on record, so gaps between the two prompt follow-up. Accurate VA-5 returns throughout the year make the January reconciliation clean.

Penalties and Interest for Late Filing

Virginia’s late-filing penalty is 6% of the tax due for every month or partial month the return is overdue, capped at 30%. A $10 minimum penalty applies to a late return even if no tax is due.4Virginia Tax. Income Tax Withholding Guide for Employers

Late payment carries the same 6% monthly rate with a 30% cap and $10 minimum. Virginia won’t stack both penalties on the same month; the combined late-filing and late-payment penalty can’t exceed 30% of the tax due, and the $10 minimum is charged only once.4Virginia Tax. Income Tax Withholding Guide for Employers

Semi-weekly filers face an extra exposure. If less than 90% of the quarterly liability has been deposited within three banking days after the semi-weekly period covering the quarter-end date, a 6% underpayment penalty applies.4Virginia Tax. Income Tax Withholding Guide for Employers

Interest runs on any unpaid balance from the original due date until you pay, at the federal underpayment rate under Internal Revenue Code §6621 plus two percentage points.4Virginia Tax. Income Tax Withholding Guide for Employers

Records to Keep

Keep withholding records for at least three years after the return’s due date or the date the tax was paid, whichever is later.4Virginia Tax. Income Tax Withholding Guide for Employers Virginia Tax expects your files to include:

  • Amounts and dates of wage payments to each employee
  • Amounts and dates of Virginia income tax withheld from each employee
  • Each employee’s name, address, Social Security number, and employment dates
  • A Form VA-4 or VA-4P exemption certificate for each employee
  • Your account number and the amounts and dates of every payment sent to the Department
  • A separate list of employees claiming exemption from withholding, with their Social Security numbers

That last item catches employers off guard. When an employee submits a VA-4 claiming total exemption, you need a standalone record of those individuals in addition to the certificate itself. In an audit, the Department may ask for both. Storing your filed VA-5 confirmations with your payroll ledger ties the periodic returns, the W-2s, and the VA-6 together in one place.