Form WV/IT‑104: Withholding Exemption Certificate: Key Takeaways
- Form WV/IT-104 is used by West Virginia employees to declare withholding exemptions for accurate state income tax deduction.
- Nonresident employees may use Form WV/IT-104NR to claim exemption based on residency and reciprocal agreements with nearby states.
- Employers must collect these forms, withhold appropriate taxes, remit them timely, and provide necessary tax statements to employees.
This article explains Form WV/IT-104, its key components, and necessary employer responsibilities to ensure proper tax withholding in West Virginia.
Understanding this form helps both employees and employers comply with state tax laws and avoid withholding errors.
1. What Is Form WV/IT-104 and Who Uses It?
Form WV/IT-104, formally known as the West Virginia Employee's Withholding Exemption Certificate, is a critical document for employees working in West Virginia.
Each employee completes the form to notify their employer about their tax withholding preferences so the correct amount of West Virginia state income tax is deducted from their wages.
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2. Key Components of Form WV/IT-104
Employee Personal Information
The form requires employees to provide essential personal details including their full name, Social Security Number, and current residential address.
Filing Status and Exemptions
This section allows employees to specify their tax filing status and claim exemptions:
- Single: Employees enter “1” if claiming an exemption, or “0” if not.
- Married: Options include claiming two exemptions (enter “2”), one exemption (enter “1”), or no exemptions (enter “0”).
- Dependents: Employees list the number of dependents for whom they are claiming exemptions.
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Total Exemptions Calculation
Employees sum the exemptions from filing status and dependents and enter the total number, which employers use to calculate withholding amounts.
Special Withholding Situations
Form WV/IT-104 provides options for employees to adjust withholding if they meet certain criteria:
- If an employee is single, head of household, or married with a non-working spouse and is paid by only one employer, they may check a box to opt for a lower withholding rate.
- Employees can also request additional withholding from each paycheck by specifying a dollar amount in the provided section to cover additional tax liability.
Employee Certification
To complete the form, employees must certify the accuracy of the submitted information by signing and dating Form WV/IT-104. This certification is essential for the form’s validity.
3. Handling Nonresident Employees With Form WV/IT-104NR
West Virginia has reciprocal tax agreements with Kentucky, Maryland, Ohio, Pennsylvania, and Virginia. Residents of these states who work in West Virginia can avoid West Virginia income tax withholding by using Form WV/IT-104NR, the Certificate of Nonresidence.
This form requires employees to certify their home state residency and request exemption from West Virginia withholding. Nonresidents must inform their employer within ten days if their residency status changes to ensure accurate withholding.
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Military Spouses and Special Exemptions
Military spouses stationed in West Virginia but domiciled elsewhere can also use Form WV/IT-104NR to claim exemption from withholding under the Servicemembers Civil Relief Act and Military Spouses Residency Relief Act by submitting proof of domicile in another state.
4. Employer Responsibilities for Form WV/IT-104
Employers play a crucial role in withholding state income taxes correctly by collecting and maintaining Form WV/IT-104 from each employee.
They must calculate tax withholding based on the total exemptions and filing status declared and remit withheld taxes to the West Virginia Tax Division by the 15th day of the month after the payroll period.
Additionally, employers are required to furnish employees with a Withholding Tax Statement (Form W-2) by January 31st of the following year and submit corresponding forms (including Form IT-103 for reconciliation) to the Tax Division.
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Electronic Filing Requirements for Employers
Employers with 25 or more employees must file and pay withholding taxes electronically.
From periods beginning after December 31, 2024, those using payroll services or filing for more than 10 employees will also be required to electronically file returns, with penalties possible for non-compliance.
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5. Additional Important Considerations
Employers and employees should be aware of special situations to maintain compliance:
- Military spouses should provide proof of out-of-state domicile to claim withholding exemption using Form WV/IT-104NR.
- Nonresident employees need to timely notify employers of residency status changes to avoid incorrect tax withholding.
- Employers must keep accurate and updated records of withholding certificates and payments to the state tax agency.
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6. Useful Official Resources for Form WV/IT-104 and Withholding
For more detailed information and to access official forms, utilize the following West Virginia Tax Division resources:
- West Virginia Tax Division - Withholding Tax Forms
- West Virginia Tax Division - Withholding Help and General Information
- West Virginia Tax Division - Business Registration Information
- West Virginia Tax Division - Electronic Filing
- West Virginia Tax Division - Employer's Withholding Notice
Form WV/IT‑104: Withholding Exemption Certificate: Conclusion
Form WV/IT-104 is essential for West Virginia employees and employers to accurately determine and implement state income tax withholding.
Employees must complete the form correctly to reflect their exemptions and special withholding preferences, while employers have the duty to collect, maintain, and use these forms to comply with withholding, remittance, and reporting requirements.
Understanding both parties' responsibilities regarding Form WV/IT-104 promotes proper tax withholding and helps prevent compliance issues with the West Virginia Tax Division.
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