West Virginia Payroll Tax Guide (2026)

West Virginia cut every personal income tax bracket by another 5% for 2026, so withholding now runs from 2.11 to 4.58% on tables the Tax Division reissued in March 2026, while the unemployment wage base sits at $9,500 with rates from 1.50 to 7.50%.^[7]

10 min read • Reviewed by Rajanikant Patel CPA • Verified Oct 1, 2026 • Sources: WV Tax Division, WorkForce WV, IRS

Quick Facts

West Virginia payroll at a glance

West Virginia runs two state payroll taxes: graduated income tax withholding taken from employee pay, and unemployment compensation contributions that employers fund on the first $9,500 of each worker’s wages.^[7]

State income tax withholding

2.11%–4.58% ^[2]

UI taxable wage base

$9,500 per employee ^[7]

New employer UI rate

2.70% ^[7]

Experienced UI rate range

1.50%–7.50% ^[7]

Employee-paid state payroll tax

None ^[7]

Social Security wage base

$184,500 ^[2]

FUTA net rate

0.6% = $42 per employee ^[13]

State minimum wage

$8.75 per hour ^[10]

Local minimum wage ordinances

None ^[10]

UI registration trigger

An employing unit becomes liable if it is liable under the Federal… ^[7]

Exempt salary threshold

$35,568 per year ^[14]

Additional Medicare threshold

Over $200,000, employee only ^[3]

Book a Payroll Consultation Talk to a Payroll Expert

What changed for West Virginia payroll in 2026

Six items moved for West Virginia employers this year. Anything below is what have changed since the 2025 tables, so a rate card carried over from last year will be wrong in at least one place.

Income tax rates cut 5% New brackets run 2.11% to 4.58% Withholding tables reissued March 2026 UI wage base at 9,500 Minimum wage unchanged at 8.75 No FUTA credit reduction

Running 2026 payroll on the 2025 withholding tables: The 5% rate cut was signed on 31 March 2026 and did not formally take effect until 12 June, but it applies retroactively to 1 January 2026. The Tax Division reissued Forms WV IT-100.2A and IT-100.2B in March 2026 to match. Any employer still running the old tables after that point is over withholding, and the fix is a table swap in the payroll system, not a year end adjustment on the W-2.^[5]

Estimate

2026 West Virginia payroll tax calculator

Enter one employee’s annual gross wages to see what the employer owes, what comes out of the paycheque, and the true cost of employment.

West Virginia · 2026 rates · per employee, per calendar year

Annual gross wages ($)

Cash wages subject to payroll tax, before any withholding.

Your UI contribution rate

Your exact rate comes from WorkForce West Virginia each year.

Custom UI rate (%)

FUTA basis

FUTA is 6.0% less a 5.4% credit where the state has no outstanding federal loan.

Employer pays

UI, on first $9,500–

FUTA, on first $7,000–

Social Security, 6.2%–

Medicare, 1.45%–

Employer payroll tax–

Withheld from the employee

Social Security, 6.2%–

Medicare, 1.45%–

Additional Medicare, 0.9% over $200,000–

Withheld from employee–

True cost of employment–

Employer tax as % of wages–

Total payroll tax, both sides–

State income tax withholding is not included above: it depends on the employee’s Form WV/IT-104, Employee’s Withholding Exemption Certificate and filing status, so it cannot be estimated from gross pay alone.

Rates & Nexus

Payroll tax rates & the nexus question

West Virginia runs two state payroll taxes. The table below is the whole state layer for 2026.^[7]

The state payroll taxes

Tax	Paid by	2026 rate	Wage base
UI	Employer	1.50%–7.50%; 2.70% new	$9,500
Income tax withholding	Employee	2.11%–4.58%	No limit

Who has to register

An employing unit becomes liable if it is liable under the Federal Unemployment Tax Act and has at least one West Virginia employee, pays $1,500 or more in total gross wages in a quarter, has at least one employee during 20 different weeks in a calendar year, or acquires all or part of a liable business. Non-profits are liable at four or more employees in each of 20 weeks, domestic employers at $1,000 in a calendar quarter, and all state and local government units are covered.^[7] Income tax withholding is administered separately by West Virginia Tax Division, so most employers end up with two state account numbers, not one.

Multistate and remote employees

When an employee works in more than one state, the four-part test below decides which state the wages are reported to. The tests run in order: you stop at the first one that gives an answer.

1. Localisation of service→
2. Base of operations→
3. Place of direction & control→
4. Employee’s residence

One remote employee is usually enough. A single person working from home in West Virginia generally creates an obligation to register and report wages here, even if the business has no office, property or customers in the state.

Confused by West Virginia’s payroll withholding & filing rules?

We handle registration, filings, and year-end forms so your team runs payroll without the guesswork.

Ask a Payroll Specialist

Compliance

Registration & return filing

Registration is online and free. The unemployment account and, where one exists, the withholding account are opened separately and carry different numbers.^[7]

How to register

Cross the wage threshold→
Online Unemployment Compensation Employer Contribution System at apps.wv.gov; new employers apply through business4.wv.gov→
Receive account number→
File & deposit online

Deposit schedule

All employers are monthly payers and quarterly filers, except employers who withhold less than $600 a year and certain domestic and household employers, who file annually. Monthly remittances are due by the 15th of the following month. An employer filing for more than ten employees, or using a payroll service, must file and pay electronically.^[2]

Returns, reports & due dates

Form	What it is	Due
Form WV/IT-101V monthly payment voucher, Form WV/IT-101Q quarterly return, Form…	Income tax withholding returns	All employers are monthly payers and quarterly filers, except employer
Annual reconciliation	Year-end withholding reconciliation	January 31
Form 941	Federal quarterly return	Last day of the month after quarter end
Form 940	Federal unemployment, annual	January 31
New hire report	Report of newly hired employees	Within 20 days of start date

Quarterly unemployment returns are due April 30, July 31, October 31, January 31. A return filed one day late is delinquent, and in most states the penalty attaches to the return, not the payment.^[7]

Watch the rate you actually withhold on: SB 392 cut rates roughly 5% retroactive to 1 January 2026. The 2026 brackets run 2.11% to $10,000, 2.81% to $25,000, 3.16% to $40,000, 4.22% to $60,000 and 4.58% above $60,000.^[2]

Pricing

Payroll Pricing

Simple, transparent pricing, no setup fees, no year-end surprises. One flat charge per pay run.

Your Biweekly Payroll Statement

Line items the big providers quietly bill for

NO HIDDEN FEES
CROWNGLOBE

Setup fee

one-time onboarding

billed
extra

Every payroll run

each pay cycle

billed
extra

Off-cycle payroll

corrections & bonuses

billed
extra

Year-end filings

W-2s, 1099s & more

billed
extra

All you actually pay

Per employee, per pay run

$6 /emp

Plus a flat $40 minimum per pay run. That’s the whole bill.

Get Started with Payroll See What’s Included

Wage Base

Subject wages vs. exempt payments

Not every dollar an employee receives is a taxable wage. The split below governs what goes into the unemployment wage base and what is reported at year end.^[7]

Subject wages

Salaries, hourly pay, overtime and piece rates
Commissions, bonuses and incentive pay
Most cash tips reported by the employee
Vacation, holiday and paid sick leave when taken as wages
Severance and payments in lieu of notice
The cash value of meals and lodging provided as compensation
Employer contributions to a non-qualified deferred compensation plan

Not subject

Reimbursements of genuine business expenses under an accountable plan
Employer contributions to a qualified retirement plan
Employer-paid premiums for accident and health insurance
Most third-party sick pay after the sixth calendar month
Payments to a genuine independent contractor
Workers compensation benefits

The wage base is per employer, per year, not per job. If you hire someone in August who already earned $9,500 elsewhere, your unemployment clock still starts at zero. The one exception is a successor employer taking over an existing payroll, who inherits the wages already paid.

Reference

Glossary of key terms

Taxable wage base: The slice of each employee’s annual pay that unemployment tax is calculated on. In West Virginia that is $9,500 for 2026. Earnings above it are still wages, they are simply no longer taxed for unemployment.
Experience rating: The method WorkForce West Virginia uses to set each employer’s own unemployment rate from its history of claims. Employers with fewer charged claims move down the schedule; those with more move up.
New employer rate: The rate assigned before an employer has enough history to be experience rated. It normally applies for two to three years, then the account moves onto the experience schedule.
Form WV/IT-104, Employee’s Withholding Exemption Certificate: The state withholding certificate. It sets how much income tax comes out of each cheque and is filed with the employer, not with West Virginia Tax Division.
Reserve account: The running balance of contributions an employer has paid in, less the benefits charged against it. The ratio of that balance to taxable payroll is what drives the assigned rate.
Successor employer: A business that acquires another’s payroll may inherit both its experience rate and the wages already paid toward the wage base for the year. Getting this wrong is a common acquisition error.
Localisation of service: The first of four tests deciding which state a multistate employee’s wages are reported to. If substantially all the work is in one state, that state wins and the remaining tests are never reached.
FUTA credit reduction: A reduction in the 5.4% federal unemployment credit applied to states that have carried an outstanding federal loan for two or more consecutive Januaries. It raises the effective FUTA rate and is settled each November.
Supplemental wages: Bonuses, commissions, awards and similar payments made outside the regular payroll cycle. Many states set a separate flat withholding rate for them.
Local withholding: Income or occupational tax levied by a city, county or school district and withheld by the employer alongside state tax. It is assessed separately from the state layer.

Federal, State & Local

West Virginia payroll tax, layer by layer

Federal tax applies everywhere and is the larger number. The state layer is what changes when you cross a border.

Layer 1: Federal

Tax	Rate	2026 base
Social Security	6.2% each side	$184,500
Medicare	1.45% each side	No limit
Additional Medicare	0.9% employee only	Over $200,000
FUTA, standard	0.6% net	$7,000
Federal income tax	Per Form W-4	No limit

West Virginia has no FUTA credit reduction for 2026, so the standard 0.6% net rate applies, $42 per employee. The final list is not published until 10 November 2026.^[13]

Layer 2: State

Tax	Rate	2026 base
UI, new employer	2.70%	$9,500
UI, experienced	1.50%–7.50%	$9,500
Income tax, standard	2.11%–4.58%	No limit

Layer 3, county & city: a real third layer

West Virginia has no municipal income tax, but state law lets a city impose service fees on the users of municipal services such as police and fire protection and street maintenance, collected in whatever manner the city ordinance specifies. Several cities use that power to charge a flat weekly fee on people who work inside the city limits, and the ordinance rather than state law is what decides whether the employer has to withhold and remit it. Check the ordinance of every city where your staff physically work.^[11]

The state minimum wage is $8.75 an hour, effective 2016-01-01. The tipped cash wage is $2.62. No local ordinance sets a higher floor. The West Virginia rate only bites where six or more non-exempt employees work at one separate, distinct and permanent location. Below that the federal 7.25 dollar rate governs any employer covered by the Fair Labor Standards Act. No West Virginia city sets its own minimum wage. Employers may take a 70% tip credit, leaving a 2.62 dollar cash wage.^[10]

Overtime exemption is a separate test. A salaried employee is exempt from overtime only above $35,568 a year ($684.00 a week) federal FLSA, and only if the duties test is also met. Paying a salary is not by itself enough.^[14]

FAQ

West Virginia payroll FAQs

Five brackets: 2.11% up to $10,000 of taxable income, 2.81% to 25,000, 3.16% to 40,000, 4.22% to 60,000 and 4.58% above that. Married taxpayers filing separately use half those thresholds. The figures come from Senate Bill 392, which cut every rate by 5% retroactive to 1 January 2026.

Nearly everyone is a monthly payer and a quarterly filer. You remit by the 15th of the month after the withholding month and file Form WV/IT-101Q by the last day of the month after each quarter. The exception is an employer withholding less than $600 a year, or certain domestic and household employers, who file once a year on Form WV/IT-101A by 31 January.

If you file a withholding return for more than ten employees, or you use a payroll service, you must submit all data electronically. That mandate has applied to periods beginning after 31 December 2024. Separately, an employer remitting $50,000 or more in annual business tax has to pay and file electronically.

Only if you have six or more non-exempt employees working at one separate, distinct and permanent location. Below that threshold the state minimum wage law does not reach you, but the federal Fair Labor Standards Act rate of $7.25 still does for any covered employer. In practice most West Virginia employers are covered by one or the other.

New employers pay 2.70% on the first $9,500 of each employee’s wages for 2026. Experience rated employers run from 1.50 to 7.50%. Quarterly reports and payments are due by 30 April, 31 July, 31 October and 31 January through the online employer contribution system.

Possibly. West Virginia has no municipal income tax, but state law lets a city charge service fees on the users of municipal services and collect them in whatever way its ordinance sets out. Several cities apply a flat weekly fee to people working inside the city limits and put the collection duty on the employer. Because the obligation comes from the ordinance rather than from state law, check the rules of each city where your staff physically work.

$9,500 per employee per calendar year. Once an employee reaches that in wages from you, no further unemployment tax is due on that employee for the rest of the year. The count restarts on 1 January and does not carry over from a previous employer.

$8.75 an hour. No local ordinance sets a higher rate. The tipped cash wage is $2.62.

April 30, July 31, October 31, January 31. A return is delinquent the day after the deadline even if the tax itself was paid on time, so file the return whether or not you can pay.

Verification

Sources & methodology

Methodology: every rate, threshold and due date on this page was taken from the administering agency’s own published material for the 2026 tax year, checked on Oct 1, 2026. Where a federal figure applies it comes from the IRS, SSA or US Department of Labor. 7 data points on this page could not be confirmed against a primary source and are either omitted or marked as not published, rather than estimated. Rates change, and some change mid-year, so confirm against your own rate notice before running a payroll.

Get started

Need help with West Virginia payroll compliance?

CrownGlobe runs payroll for U.S. businesses in every state, registration, withholding, filings, and year-end forms.

Book a Free Payroll Consultation

Next step

Running payroll in more than one state?

West Virginia alone means its own registration, its own deposit calendar and its own year-end reconciliation. Add a second state and the work compounds rather than doubles. CrownGlobe runs multistate payroll end to end: registration, deposits, quarterly returns and year-end.

Explore payroll processing services →
Browse all state payroll guides →
Book a free consultation →