Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 140 - INCOME TAX WITHHOLDING › Section 23VAC10-140-100 - Included and excluded wages

Current through Register Vol. 40, No. 24, July 15, 2024
A. If a portion of the remuneration paid by
				an employer to his employee for services performed during a payroll period of
				not more than 31 consecutive days constitutes "wages" under
				23VAC10-140-10 (that is,
				remuneration for services from which tax is required to be withheld), and the
				remainder does not constitute "wages," all the remuneration paid the employee
				for services performed during such period shall for purposes of withholding be
				treated alike, that is, either all included as wages or all excluded. The time
				during which the employee performs services, the remuneration of which
				constitutes wages under
				23VAC10-140-10, and the time
				during which the employee performs services, the remuneration for which under
				such section does not constitute wages, determine whether all the remuneration
				for services performed during the payroll period shall be deemed to be included
				or excluded.
B. If 1/2 or more of
				the employee's time in the employ of a particular employer in a payroll period
				is spent in performing services the remuneration for which constitutes wages,
				then all the remuneration paid the employee for services performed in that
				payroll period shall be deemed to be wages.
C. If less than 1/2 of the employee's time in
				the employ of a particular employer in a payroll period is spent in performing
				services the remuneration for which constitutes wages, then none of the
				remuneration paid the employee for services performed in that payroll period
				shall be deemed to be wages.
D. The
				application of the provisions of subsections A, B, and C may be illustrated by
				the following examples:
Example 1: Employer B, who operates a store and a farm,
				  employs A to perform services in connection with both operations. The
				  remuneration paid A for services on the farm is remuneration for agricultural
				  labor and is not subject to withholding, and the remuneration for services
				  performed in the store constitutes wages and is subject to withholding.
				  Employee A is paid on a monthly basis. During a particular month, A works 120
				  hours on the farm and 80 hours in the store. None of the remuneration paid by B
				  to A for services performed during the month is deemed to be wages, because the
				  remuneration paid for less than 1/2 of the services performed during the month
				  constitutes wages. During another month, A works 75 hours on the farm and 120
				  hours in the store. All of the remuneration paid by B to A for services
				  performed during the month is deemed to be wages because the remuneration paid
				  for 1/2 or more of the services performed during the month constitutes
				  wages.
Example 2: Employee C is employed as a maid by D, a
				  physician, whose home and office are located in the same building. The
				  remuneration paid C for services in the home is remuneration for domestic
				  service and is not subject to withholding, and the remuneration paid for her
				  services in the office constitutes wages and is subject to withholding. C is
				  paid on a weekly basis. During a particular week C works 20 hours in the home
				  and 20 hours in the office. All of the remuneration paid [by] D to C for
				  services performed during that week is deemed to be wages, because the
				  remuneration paid for 1/2 or more of the services performed during the week
				  constitutes wages. During another week C works 22 hours in the home and 15
				  hours in the office. None of the remuneration paid by D to C for services
				  performed during that week is deemed to be wages, because the remuneration paid
				  for less than 1/2 of the services performed during the week constitutes
				  wages.
E. The rules set
				forth in this section do not apply (1) with respect to any remuneration paid
				for services performed by an employee for his employer if the periods for which
				remuneration is paid by the employer vary to the extent that there is no period
				that constitutes a payroll period within the meaning of
				23VAC10-140-10, or (2) with
				respect to any remuneration paid for services performed by an employee for his
				employer if the payroll period for which remuneration is paid exceeds 31
				consecutive days. In any such case withholding is required with respect to that
				portion of such remuneration which constitutes wages.
Statutory Authority
§§ 58.1-203 and 58.1-469 of the Code of
					 Virginia.