CODE OF VIRGINIA

PAYROLL FACTOR (§ 58.1-412)

The payroll factor is a fraction, the numerator of which is the total amount
paid or accrued in the Commonwealth during the tax period by the corporation for
compensation, and the denominator of which is the total compensation paid or
accrued everywhere during the taxable year, to the extent that such payroll is
used to produce Virginia taxable income and is effectively connected with the
conduct of a trade or business within the United States and income therefrom is
includable in federal taxable income.

HISTORY: Code 1950, § 58-151.045; 1971, Ex. Sess., c. 171; 1981, c. 402; 1984,
c. 675.