In general, an employer who pays wages to one or more employees in Virginia is required to deduct and withhold state income tax from those wages. When filing Form VA-6H, Wage and Tax Statements (Form W-2) must also be submitted electronically for each employee using Web Upload or eForms.No. But you do get a credit, on the the NYS return, for the tax you pay to VA. The general rule is: your report all your income on your home state return. VA W-4 Requirements. Managing payroll in Virginia? Read our employer's guide on staying compliant with payroll tax laws in Virginia. Learn in detail about payroll processing in Virginia, from wage calculation and main laws to deductions, tax, and key steps in the process. Virginia has an increasing state income tax with no municipal taxes, and its human resources rules typically adhere to federal principles. Virginia has a few statespecific HR laws, progressive income tax, and its own minimum wage law. Learn how to do Virginia payroll.