What should I do if I accidentally under-withheld Virginia withholding tax reported on Form VA-5Q?

If you discover that you under-withheld Virginia income tax from employees’ wages, take the following steps immediately:

1. Calculate the Correct Amount: Determine the total tax that should have been withheld for the period.

2. Remit the Payment: Submit the additional tax owed to the Virginia Department of Taxation as soon as possible.

3. File an Amended Return (if needed): If the underpayment affects a previously filed Form VA-5Q, file an amended return reflecting the correct amounts.

4. Monitor Penalties and Interest: Late payments may incur interest and penalties; contact the Department if guidance is needed.

5. Adjust Payroll Procedures: Update your payroll system to prevent under-withholding in future periods.

Prompt correction helps ensure compliance and reduces the risk of additional penalties or enforcement actions.