1. A. Wages paid with respect to period which is not payroll period.—If wages are paid with respect to a period which is not a payroll period, the amount to be deducted and withheld shall be that applicable in the case of a miscellaneous payroll period containing a number of days, including Sundays and holidays, equal to the number of days in the period with respect to which such wages are paid.

   Example: Employer B is a painter who pays Employee C when a particular job is completed. Painting Ms. R's house took six days over an eight-day period. Employee C (who claims two personal exemptions) earned $75 for each of the six days worked, or $450 for the job. For withholding purposes, Employee C is deemed to have earned $56.25 ($450 divided by eight) for each day in the eight-day period. Using the daily or miscellaneous withholding tax table, $17.76 (or $2.22 for each of the eight days) of Virginia income tax was withheld.

2. B. Wages paid without regard to any period.—In any case in which wages are paid by an employer without regard to any payroll period or other period, the amount to be deducted and withheld shall be that applicable in the case of a miscellaneous payroll period containing a number of days equal to the number of days, including Sundays and holidays, which have elapsed since the date of the last payment of such wages by such employer during the calendar year, or the date of commencement of employment with such employer during such year, or January 1 of such year, whichever is the later.

   1. 1. Average daily wage is computed by dividing total amount of wage payment ($3,000) by number of days since March 30, 1983 (48 days) [March 30, 1983 is used as the starting date because it is the later of March 30, 1983, June 15, 1982 or January 1, 1983]. . . . . . . . $62.50
   2. 2. Amount of withholding from daily or miscellaneous table on wages of $62.50 for two exemptions ($2.57) multiplied by 48 days. . . $123.36

   Example: Employer D is an automobile dealer who pays Employee E a commission when he sells automobiles. Employee E received commissions on March 30, 1983 and May 17, 1983 for several cars sold in 1983. The May 17 commission was $3,000. Employee E, who has been employed since June 15, 1982, claims two personal exemptions. Employer D withheld $123.36 from the May 17 commission, computed as follows:

3. C. Withholding on basis of average wages.—An employer may determine the amount of tax to be deducted and withheld upon a payment of wages to an employee on the basis of the employee's average estimated wages, with necessary adjustments, for any quarter.

Statutory Authority

§§ 58.1-203 and 58.1-464 of the Code of Virginia.

Historical Notes

Derived from VR630-6-464, eff. January 1, 1985.