Virginia Tax

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

Deltek Modification Date - 12/5/07

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

Field	Description
Status	Virginia's tax calculations do not use the Status field.
Exemptions	Enter the total number of withholding exemptions claimed by the employee on line 5 of the Virginia Employee’s Withholding Exemption Certificate, Form VA-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form VA-4. Exemptions for dependents. If the employee did not submit a Form VA-4, enter zero for the number of exemptions.
Other Exemptions	Enter the number of exemptions for age (65 or older) or blindness that the employee has claimed on Form VA-4.

Automatically Calculated Variables

Deltek automatically computes the following variables.

Standard Deduction

The standard deduction is a fixed amount deduction, which is applied to all employees. Deltek calculates the deduction using a table based on an annual deduction of $3,000.

Allowance

The Allowance is based on the number of exemptions in the Exemptions and Other Exemptions fields. It is determined by multiplying the number of exemptions in the Exemptions field by $930, and the number of exemptions in the Other Exemptions field by $800.

How Deltek Calculates Tax

To calculate an employee's Virginia State tax, Deltek 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 Standard Deduction, Allowance, and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the annualized tax to be withheld by applying Tax Calculation Method 1 to the taxable income.
4. Divides the annualized tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.