Virginia Payroll Tax and Registration Guide

Use this checklist to make sure you’ve covered everything required to set up your account as a Virginia employer so OnPay can accurately file and pay taxes on your behalf: 

OnPay handles the filing of all state and local taxes for businesses in Virginia, including:

If you are an existing employer who has previously run payroll in Virginia, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.

If you are a new employer in Virginia, you will need to register your business with the Virginia Department of Taxation and the Virginia Employment Commission. This must be completed for OnPay to be able to file and pay your Virginia taxes.

Withholding Tax Account Number

Existing Virginia Employer: 

Existing employers can find their Withholding Tax Account Number on notices received from the VA Employment Commission. If you cannot locate this document or account number, please call the Virginia Department of Taxation at (804)-367-8037 to request it.

New Virginia Employer: Register with the Virginia Department of Taxation 

• You can register electronically by clicking here and selecting “Are you a new Business? Register Here.” This process will register you for both your Department of Taxation and Employment Commission IDs. If you have any questions regarding the registration, please contact the Department of Taxation at (804)-367-8037.

Unemployment Account Number and Tax Rate

Existing Virginia Employer: 

• You can find your Unemployment Account Number on a tax rate notice or a quarterly contribution and wage report 
• Your Unemployment Tax Rate can be found in the State Unemployment Insurance (SUI) notice that you receive from the VA Employment Commission. The employer contribution rate for SUTA can range from 0.33% - 6.43% (including the 0.20% fund building charge and 0.03% pool cost charge) with a wage base of $8,000.

New Virginia Employer: Register with the Virginia Employment Commission

• You can register electronically by clicking here and selecting “Are you a new Business? Register Here.” This process will register you for both your Department of Taxation and Employment Commission IDs. If you have any questions regarding the registration, please contact the Department of Taxation at (804)-367-8037.
• New employers generally have a rate of 2.73% (including the 0.20% fund building charge and 0.03% pool cost charge) for SUTA with a wage base of $8,000.

In order for OnPay to be able to make tax payments on your behalf, you will need to add OnPay as your third party agent. To do so, please follow the instructions below.

1. Log in to your existing Virginia Tax account
2. Select "Account"
3. Go to "Manage My Account"
4. Add us as your Tax Preparer for TAX. Our unique ID is "pcipayroll" and we need level of permission as "Master" for TAX (withholding).
5. Add us as your Tax Preparer for VEC (unemployment). Our unique ID is "pcipayroll" and we need to be approved for the "Account Summary" and "Quarterly Report & Payment" levels of authority.​
6. If your business does not have unemployment tax then you may not have a VEC account.

You will also need to sign a Virginia Power of Attorney Form. Follow the instructions in this article to do so.