Many employers ask: how do I file Richmond BPOL tax for remote employees living in Goochland? You must apportion gross receipts by the employee’s work location. Wages earned by employees working remotely in Goochland are excluded from the Richmond BPOL calculation.
If your business operates in Richmond, you must file the Business, Professional, and Occupational License (BPOL) tax annually. Calculating gross receipts requires accurately sourcing the payroll of remote employees residing outside city limits. For a full overview of Richmond payroll compliance, see payroll company in Richmond, VA.
Sourcing Gross Receipts for Services
The BPOL tax is a local assessment based on a business’s gross receipts, not profit. For service-based businesses, receipts are sitused to the definite place of business where the work occurs.
When an employee works remotely from a residence in Goochland on a regular and continuous basis, their home qualifies as a distinct definite place of business.
According to guidelines from the Virginia Department of Taxation, payroll apportionment requires separating the payroll of employees at the Richmond headquarters from those working elsewhere.
The Rule for Remote Workers
When utilizing payroll apportionment, the wages of an employee working remotely outside the taxing jurisdiction should not be included in the numerator of that jurisdiction’s calculation.
- Identify the definite place of business for each employee.
- Exclude Goochland-based payroll from the Richmond BPOL base.
- Retain documentation proving the remote work arrangement.
Take Away
If you operate a business in Richmond or the greater Richmond area, precise payroll tracking is essential when calculating local tax liabilities.
Richmond BPOL tax applies only to gross receipts tied to a definite place of business within the city. Employers must exclude the wages of remote employees working continuously from outside jurisdictions to prevent tax overpayments.
To ensure your systems capture accurate location data, work with a payroll company in Richmond, VA to streamline your payroll process and minimize administrative risks for guaranteed compliance.