If you are a business owner in Virginia, you are likely aware of your payroll tax concerns for your employees. In addition to setting up federal payroll taxes, you also need to register for a Virginia Employment Commission (VEC) account number. Your VEC number is tied to your activity as an employer and is also traced if you terminate any employees and they file for unemployment. In the event that the State of Virginia believes you underpaid your state unemployment tax, you may be subject to a VEC audit.
Am I Liable for VEC Withholding?
You are liable for paying unemployment taxes in Virginia if you have had a quarterly payroll of $1,500 or more, or if you have had at least one employee for 20 weeks or longer during the calendar year. Special rules apply to agricultural and domestic employers as well as non-profit organizations.
If you don’t have permanent year-round employees, you are also liable for paying VEC payroll taxes if you have temporary, seasonal, and casual employees unless they are statutorily exempt.
What Can I Do to Reduce My Risk of a VEC Audit?
It’s prudent to register all new businesses with VEC and file all quarterly reports with proper payment. Don’t wait to receive your quarterly report from the state.
As a business owner, Rue & Associates understands that your time is your most valuable resource. Filing payroll tax reports and calculating payments can be stressful and prone to errors. Our experienced tax professionals can significantly reduce your VEC audit risk by taking on your quarterly payroll tax responsibilities. We are also happy to answer any questions you may have about payroll taxes.
In the event you are subject to a VEC audit due to miscalculation or failure to file your quarterly returns, Rue & Associates can represent you to the state and negotiate payments and penalties on your behalf in addition to filing any backdated payroll tax returns that need to be filed. Give us a call today to speak to one of our friendly and professional tax law experts.