If you are an employer in the state of Virginia, you may wonder how to calculate payroll taxes for your employees. Or, you may be an employee and would like to anticipate how much money would be left after deductions. The state has set up a website with a calculator to help you to figure payroll taxes for your employees easily. If however, you would like to manually figure out taxes to deduct, that is easy to accomplish as well.
Things You'll Need
- Computer with Internet access
Figure the annualized taxable income by taking the gross pay and multiplying it by the amount of pay periods a year. If the employee is paid semimonthly, then the amount of pay periods is 24. An example would be $2,000 per pay period/gross x 24 = $48,000. The example calculation would be $48,000 - [$3,000 + (E1 x 930) + (E2 x 800)] = T
$3,000 Virginia's standard deduction E1=Personal and Dependent Exemptions E2 is the Over 65 and/or Blind Exemptions T=Annualized Taxable Income
Figure how much tax is to be taken out. Since our example does not have a gross income above $3,000, then the tax would be 2 percent of T. Computing the tax with $3000 as a Standard Deduction as well as three personal exemptions and one Over 65 exemption, then the equation looks like this. 48000 - [(3000) + (2790) + (800)] = 41,410 is the annualized taxable income or "T".
Figure the tax by multipying T by 2 percent. The answer is $828.20. Divide this by the amount of pay periods, which would be 24. The amount of state tax paid per pay period on a semimonthly schedule is $34.51