58.1-412 - Payroll factor. - Virginia Statutes

§ 58.1-412. Payroll factor.

The payroll factor is a fraction, the numerator of which is the total amountpaid or accrued in the Commonwealth during the tax period by the corporationfor compensation, and the denominator of which is the total compensation paidor accrued everywhere during the taxable year, to the extent that suchpayroll is used to produce Virginia taxable income and is effectivelyconnected with the conduct of a trade or business within the United Statesand income therefrom is includable in federal taxable income.

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