By Payroll and Entitlements Editorial Staff
West Virginia adopted an income tax withholding exclusion for certain mobile employees.
Who qualifies for the exclusion? Compensation paid to a nonresident is exempt from withholding if:
- it is paid for services performed in West Virginia on 30 or fewer days in the calendar year;
- the nonresident performed services in more than one state during the calendar year; and
- the nonresident's state of residence provides a substantially similar exclusion or does not impose an individual income tax.
The withholding exclusion also applies if the U.S. Constitution or a federal statute exempts the nonresident’s income from West Virginia taxation.
The exclusion does not apply to compensation paid to professional athletes, professional entertainers, or public figures.
If the number of days an employee spends performing services in West Virginia exceeds the 30-day threshold, the employer must withhold and pay tax for every day in that calendar year. The withholding requirement applies to the first 30 days on which the employee performs services in West Virginia.
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