# Sole Proprietor (registering for Household Employer Withholding Tax ONLY)



## MayhemIndustries (Jan 21, 2009)

im signing up for my tax account in VA and its asking weather im 
Sole Proprietor (registering for Household Employer Withholding Tax ONLY) 

or

Sole Proprietor (registering for any/all tax types)

then it goes on to say this

*http://www.tax.virginia.gov/site.cfm?alias=WithholdingTax#Withholding*

If federal law requires an employer to withhold tax from any payment, we also require Virginia withholding. As an employer required to file withholding returns, you must register for withholding tax, file income tax withholding returns and pay the income tax to the Department of Taxation.
Employers must file the withholding returns whether or not there is withholding tax owed. The Commonwealth deems the amounts withheld as payment in trust for the employees' tax liabilities.
If your withholding liability is less than $100.00 per month, your withholding returns and tax payments are due quarterly. Click Quarterly for more information.
If your withholding liability is more than $100.00 but less than $1,000.00, your withholding returns and tax payments are due monthly. Click Monthly for more information.
If your withholding liability is $1,000.00 or more, your withholding returns and tax payments are due semi-weekly. Click Semi-weekly for more information.
If you do not have the withholding forms on the due date, find your filing status in the section below and click on the form name to download a copy.
*http://www.tax.virginia.gov/site.cfm?alias=WithholdingTax#Quarterly Filers*

If your average tax liability is less than $100 per month, you will be assigned a quarterly filing status. Quarterly returns and payments are due on the last day of the month following the close of each quarter, as shown below. You may file your returns on Form VA-5(PDF 29Kb), or use iFile for Businesses, our free online filing service.



IM LOST WHAT ONE DO I PICK AND WHY???
haha any help is greatly appreciated


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## lindsayanng (Oct 3, 2008)

Withholding means that you with hold the taxes from an employee's paycheck. 

You know when you get a paycheck from your job and it shows the state, federal, and other taxes that are taken out??? Well, those are deducted from your check, but they aren't going directly to the government. Basically the company will no pay you (withhold) the amount of money that needs to go to the government.. THEN every month or quarter, that employer has to write a check to the state and federal government for the amount of taxes that they with held. 

So if you make a net of $300 a week, and dont give you $6.00 for state and $11.00 for federal every week, the employer keeps track of how much they don't pay you from your net and they write a check. So if there are 4 weeks in the month, the employer will have to pay $24.00 to the state, and $44.00 to the federal. The more employees you have, the more you withhold and the more you payout. Its paid in one lump sum to the government

IF you do not intent on having any employees, then you will not be withholding. If you do intend on having them, then you NEED to file with the withholding option.. even if you don't have any employees at the moment, if you plan to have them within the first year, you should.


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## MayhemIndustries (Jan 21, 2009)

thank you! that was very helpful and informative!


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## Girlzndollz (Oct 3, 2007)

Steven, my best advice to you is to consult a local accoutant. I give this advice to anyone seeking legal or accounting answers on a t-shirt forum. 

Some accountants will answer basic questions for free over the phone, in hopes that you will come to them later on to get your taxes done.


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## lindsayanng (Oct 3, 2008)

MOST of the time people need to ask an accountant for good information and suggestions, but this wasn't someone asking for suggestions. Its an answer to a question that has only one answer.

You SHOULD get an accountant for your business anyways, it will, inthe long run, save you a LOT of money.


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