Calculation of Taxable wages. A simple example appears below. In this example, an employer has one employee to report to Virginia. The first $8000 in wages is taxable. The employer would calculate taxable wages for the four quarters during the year as follows:

 

Employer: ACME  Corp.	EIN: 99-9999
	Wages Paid	Wages Paid	Wages Paid	Wages Paid
Name/SSN	Quarter 1	Quarter 2	Quarter 3	Quarter 4
John Smith ***-**-9999	$5,000	$12,000	$12,500	$13,000
Calculation of Taxable wages. Tax is due on the first $8000 per year		$ 8,000  – $5000 =  $3000
Taxable wages	$5,000	$ 3,000	$ 0	$ 0
Tax due (5%)	$250.00	$150.00	$ 0	$ 0