West Virginia Wage and Payroll Tax Facts

December 21, 2023

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of West Virginia.

West Virginia Minimum Wage Rates
West Virginia State Income Tax (SIT) Rates
West Virginia State Unemployment Insurance (SUI) Rates
West Virginia State Disability Insurance (SDI) Rates
Miscellaneous West Virginia Tax Information
West Virginia Employer Registration
Additional West Virginia Payroll Tax Resources

West Virginia uses a slightly higher minimum wage rate than the one required by the federal government in the Fair Labor Standards Act (FLSA). This increase is reflected in both the state's Tipped Minimum Wage rate and Actual Tip Credit rate.

When it comes to processing payroll, West Virginia-based organizations must handle the following taxes in addition to those required by the federal government:

Personal Income (a.k.a. State Income Tax)
State Unemployment Insurance (SUI)
Local Taxes

The below information was last updated December 18, 2023. It is not intended as legal or tax advice.

West Virginia Minimum Wage Rates

Wage Type	West Virginia Rates	Federal Rates
Minimum Wage	$8.75	$7.25
Tipped Minimum Wage	$2.62	$2.13
Actual Tip Credit	$6.13	$5.12

West Virginia State Income Tax (SIT) Rates

West Virginia's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:

Filing Status	Income Tax Bracket [Over X] - [But not over Y]	2024 Income Tax Rate
Single / Married (filed jointly) / Head of Household / Widow(er) with Dependent Child	$0 - $10,000	0.00%
	$10,000 - $25,000	$236.00 + 3.15% of excess over $10,000
	$25,000 - $40,000	$708.50 + 3.54% of excess over $25,000
	$40,000 - $60,000	$1,239.50 + 4.72% of excess over $40,000
	$60,000 or greater	$2,183.50 + 5.12% of excess over $60,000
Married (filed separately)	$0 - $5,000	0.00%
	$5,000 - $12,500	$118.00 + 3.15% of excess over $5,000
	$12,500 - $20,000	$354.25 + 3.54% of excess over $12,500
	$20,000 - $30,000	$691.75 + 4.72% of excess over $23,000
	$30,000 or greater	$1,091.75 + 5.12% of excess over $30,000

Additional West Virginia SIT Details
Supplemental Withholding Computation	Add to the regular wages for the current or preceding payroll period and withhold based on the total amount. If the tax has already been withheld from the regular wages, withhold at the correct tax rate depending on the size of the recipient's annual gross income.
Valid Filing Statuses	S = Single M = Married; one earner MD = Married; two earners
Exemptions	Any services or individuals not subject to withholding under the Internal Revenue Code (IRC) Military personnel Low-income persons Nonresident military spouses Residents from reciprocating states (see below) Interstate carrier employees
Form W-4	Form WV IT-104
Reconciliation Frequency	Annual

West Virginia State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Starting in 2024, West Virginia-based employers are required to report on their quarterly unemployment insurance report a Standard Occupational Classification (SOC) code for each employee along with the county name associated with each employee's work location.

West Virginia SUI Tax Details
Taxable Wage Base	$9,000
Employee Subject to Tax	No
Rates for Experienced Employers	1.50% - 8.50%
Rates for New Employers	2.70% (includes a 1.00% surtax)
Effective Period	Calendar Year
Voluntary Contributions Allowed	Yes; must be made within 30 days from the notice mailing date

West Virginia State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. West Virginia, however, doesn't require employers to collect an SDI tax.

Miscellaneous West Virginia Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. West Virginia currently has reciprocal agreements with the following states:

Residents of these states must file Form WV IT-104 to verify their nonresidency.

Paid Sick Leave (PSL)

West Virginia doesn’t require employers to collect tax for paid sick leave, nor does the state have a program providing paid sick leave to employees.

Local Taxes

In addition to the state-wide taxes mentioned above, the following cities and localities have unique service fee taxes as well:

West Virginia Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Unemployment Compensation Division for unemployment tax topics.

Registration Details	Department of Revenue	Unemployment Compensation Division
Phone	(303) 558-3333	(304) 558-2677
Online Registration	One Stop Business Portal Employer Registration
Registration Form	Form BUS-APP	Employer Initial Statement
Registration Instructions	Online and paper registration options are available. Account numbers will be issued in 1-2 weeks via the online process or 3-4 weeks via mail.
Employer Self-Service Login	Tax Division Employer Login Page	Unemployment Compensation Employer Contribution System Login Page

Additional West Virginia Payroll Tax Resources

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services