West Virginia State Tax Routine (WVTX)

The West Virginia State Tax Special Routine Processing utilizes the following steps:

Line 1	Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).
Line 2	Determine the employee’s Personal Exemption Amount*.
Line 3	Determine the Taxable Amount by subtracting Line 2 from Line 1.
Line 4	Using the Marginal Tax Rates (DEDX) entries for the West Virginia State Tax deduction, compute tax on the Taxable Amount (Line 3).
Line 5	Divide the amount on Line 4 by the number of payroll periods in a year to determine the employee’s West Virginia Withholding Tax for the pay period.

*Determine the Personal Exemption Amount

Take the Annual Exemption Amount on the Tax Parameters (TAXP) entry for the employee’s West Virginia State Tax deduction and Marital Status * the number of State Tax Allowances on the employee’s Employee Tax Parameter (TAX).

Data Setup Considerations

Sites will need to ensure they have implemented the following Business Process/Data Setup changes at their site prior to using the West Virginia State Tax Routine.

Tax Parameters (TAXP) Setup for West Virginia State Tax Deductions:

The Annual Exemption Amount field is the Personal Exemption Amount for the specified Marital Status.

Employee Tax Parameter (TAX) enrollment (Note: this only applies to employees enrolled in a Tax Class (TAXC) that includes a West Virginia State Tax Deduction).

The State Tax Allowance field is the State Personal Exemption count.