Determination engine

Which state do you actually withhold in?

Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.

Withhold District of Columbia income tax.

Virginia and District of Columbia have a reciprocal agreement, so the work state stands down once the exemption certificate is on file.

Income tax withheld to

District of Columbia

Graduated, top rate 10.75%

Employee certificate

VA-4

Employee's Virginia Income Tax Withholding Exemption Certificate (reciprocity claimed on the exemption line)

Unemployment insurance

Virginia

Localized under factor 1: Localization.

Reciprocal agreement

Yes

Virginia exempts District of Columbia residents.

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File VA-4 with the employer

Reciprocity is not automatic. Until the employee files VA-4 (Employee's Virginia Income Tax Withholding Exemption Certificate (reciprocity claimed on the exemption line)) you are legally required to withhold Virginia tax. Keep the signed form on file; it is not sent to the state.

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Withhold District of Columbia income tax instead

Under the agreement the employee is taxed only by their state of residence. You will need a District of Columbia withholding account.

District of Columbia also runs a paid leave program

The employee resides in District of Columbia, which has a mandatory paid leave program, but unemployment coverage is localized to Virginia. Check whether District of Columbia requires coverage based on residence; several programs use a work-location test and a few do not.

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Employer registrations you will need

District of Columbia — Income tax withholding: DC Office of Tax and Revenue
Virginia — Unemployment insurance: Virginia Employment Commission (VEC)

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Get the form

VA-4 — Virginia (official state source)

Virginia profile District of Columbia profile Full write-up for this pair

Change the inputs

Withholding determination

Answer six questions. The result is a shareable link, so you can paste it into a ticket or an email.

Employee lives inState of residence

Work is performed inWhere the employee physically sits

Employer is based inWhere the work is directed from

Days in the work stateThis calendar year, leave blank if unknown

Wages from work-state daysUS dollars, leave blank if unknown

Arrangement Works remotely rather than at an employer location Remote work is an employer necessity, not employee preference

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.