Bookkeeping and payroll for small businesses across central Virginia.

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What forms do I need when I hire a new employee?

Every employee needs to complete Form W-4 before receiving their first paycheck. This tells you how much federal income tax to withhold based on their filing status and any adjustments they claim. Keep the completed form in your files. You don’t send it anywhere unless the IRS specifically requests it.

Form I-9 verifies the employee is authorized to work in the United States. The timing on this one is strict. The employee fills out Section 1 by their first day of work. You complete Section 2 within three business days of their start date after reviewing their identity and work authorization documents. Keep I-9s on file for three years after hire or one year after termination, whichever is later. Mess up the timing and you’re exposed to penalties if you’re ever audited.

Virginia requires Form VA-4 for state withholding. It works similarly to the federal W-4 but determines Virginia income tax withholding. If an employee doesn’t give you a VA-4, you have to withhold at the highest rate, which most employees won’t appreciate when they see their first paycheck.

You also need to report new hires to Virginia’s New Hire Reporting Center within 20 days of their start date. This isn’t a form the employee fills out. You submit their name, address, Social Security number, and your employer information through Virginia’s online system. The state uses this data to locate parents who owe child support and to detect unemployment fraud.

Beyond government-required forms, most employers collect a few additional items. Direct deposit authorization so you can pay employees electronically. Emergency contact information. Benefits enrollment paperwork if you offer health insurance or retirement plans. These aren’t legally mandated but they’re standard practice for small business owners running a legitimate operation.

The forms themselves are straightforward. The harder part is making sure withholding calculates correctly each pay period and that filings happen on schedule. Many business owners in Richmond find that working with payroll services takes this off their plate entirely, especially when they’re focused on running the business rather than tracking compliance deadlines.

Keep copies of all completed forms organized by employee. A simple folder system works fine. Digital copies are acceptable as long as they’re backed up and you can access them quickly if someone asks.

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More Questions

How do I calculate how much sales tax I owe?

Multiply your taxable sales for the period by the applicable tax rate. In most of the Richmond area, that's 5.3%. The key is making sure you've correctly identified which sales are taxable and reconciling against what you actually collected.

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Can QuickBooks handle payroll for my business?

Yes, QuickBooks Payroll handles wages, tax calculations, filings, and direct deposit for most small businesses. Whether it's the right choice depends on your employee count and how much time you want to spend managing it yourself.

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How do I file quarterly estimated taxes in Virginia?

Virginia estimated taxes are due April 15, June 15, September 15, and January 15 if you expect to owe $150 or more. Pay online through Virginia Tax's iFile system or mail Form 760-ES with a check.

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What is sales tax nexus and does it apply to me?

Nexus is the connection between your business and a state that requires you to collect sales tax there. Most local service businesses only have Virginia nexus, but if you sell products online or into other states, you may need to collect and remit sales tax elsewhere.

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I haven't done any bookkeeping since I started my business. Is it too late?

No, it's not too late. Bank and credit card statements can be used to reconstruct your records even if you never tracked anything. The longer you wait, the harder it gets, but catching up is almost always possible.

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How Do I Set Up Job Costing for My Construction Business?

Track every cost against the job it belongs to. Labor hours, materials, subs, equipment. Compare what you bid against what you spent. Without this, you won't know which jobs make money until it's too late to do anything about it.

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