West Virginia taxes unemployment income to the same extent it’s taxed by federal law. The 5.12% tax bracket applies to taxable income over $60,000.
In West Virginia, employers must have workers’ compensation insurance. This insurance provides benefits to employees who suffer job-related injuries or illnesses.
When it comes to processing payroll, West Virginia-based organizations must handle taxes in addition to those required by the federal government:
- Personal Income Tax
- State Unemployment Insurance
- Local Taxes
To streamline payroll compliance and ensure full compliance, companies can turn to solutions that offer comprehensive payroll management, including payments, taxes, worker classification, and more.
Unemployment Tax Exemption
West Virginia Governor Jim Justice signed a bill into law Tuesday that will also exempt the $10,200 in unemployment benefits from the state taxes.
Taxation for Nonresidents
Unfortunately, West Virginia taxes unemployment to nonresidents if they worked in West Virginia to qualify for the unemployment.