West Virginia Tax

For West Virginia residents, you specify the employee's status and exemptions.

Deltek Modification Date - 4/10/09

Enter the following field information for residents of West Virginia on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter the status claimed by the employee: 1: An employee with a filing status of two earners. 2: An employee with a filing status that is not two earners.
Exemptions	Enter the total number of exemptions claimed by the employee for federal income tax purposes on Form W-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form W-4. Exemptions for dependents. If the employee submitted West Virginia Employee’s Withholding Exemptions Certificate (Form W-4 or Form IT-104), use the number of exemptions claimed for federal income tax purposes on this form. If the employee did not submit Form IT-104 or Form W-4, enter zero in this field.
Other Exemptions	West Virginia’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

DPS automatically computes the Allowance, which is used in determining the net income tax.

Allowance

The Allowance is based on the number of exemptions entered in the first Exemptions field. It is determined by multiplying the number of exemptions by $2,000.

How DPS Calculates Tax

To calculate an employee's West Virginia State tax, DPS does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Allowance and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Determines the net income tax by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.

West Virginia State tax withholdings are calculated to the nearest dollar, as of changes made in 2007. The American Recovery and Reinvestment Act of 2009 federal tax changes are included in this change.