Virginia Payroll & Paycheck Tax Calculator

Before hiring your first Virginia employee, you’ll need to register with Virginia Tax for your withholding account and the Virginia Employment Commission (VEC) for unemployment insurance. Both agencies offer online registration, making the process as smooth as Virginia ham. You’ll receive separate account numbers for tax withholding and unemployment insurance.

New employers pay 2.5% unemployment tax on the first $8,000 of each employee’s wages—plus an additional 0.1% for the Fund Builder Tax.

The Commonwealth keeps paperwork requirements reasonable and straightforward:
• Federal W-4 and Virginia VA-4 forms for withholding
• Federal forms from the IRS: • Form 941 (Quarterly federal tax return) • Form 940 (Federal Unemployment Tax, FUTA) • W-2 and 1099 (Year-end wage reporting)
• New Hire Reports: Submit to Virginia New Hire Registry within 20 days
• Workers’ Compensation: Required for businesses with 3+ employees
• Form VA-5: Quarterly withholding tax return
• Form VA-6: Annual employer reconciliation
Virginia keeps things simple with no local income taxes—one set of rules covers the entire state.

Virginia’s minimum wage is $12.41 per hour as of 2025. Tipped employees can be paid $2.13 per hour, but employers must ensure tips bring them to at least minimum wage. Agricultural workers and some other categories have different minimum wage requirements.

Virginia follows federal overtime rules: time-and-a-half after 40 hours in a workweek. No daily overtime requirements exist, and weekends or holidays don’t automatically trigger overtime unless they push employees over 40 weekly hours.

Virginia gives employers flexibility in choosing pay frequencies. While no specific schedule is mandated, employers must establish regular paydays and stick to them. Most Virginia employers pay weekly, bi-weekly, or semi-monthly.

For final paychecks, Virginia law requires payment on or before the next regular payday after termination. This applies whether employees resign or are terminated. Employers cannot withhold final pay for any reason, including unreturned company property.

Virginia doesn’t mandate paid sick leave, vacation time, or holiday pay at the state level. However, if you promise these benefits in your policies, you must honor them.

Virginia’s tax structure is straightforward, but our calculator ensures accuracy across all withholdings:
• Federal income tax withholding
• Virginia state income tax (2% to 5.75% based on income)
• FICA taxes (Social Security and Medicare)
• Unemployment taxes (FUTA and SUTA)
Get instant calculations showing gross pay, all deductions, and net take-home pay for your Virginia employees—no manual math required.

Virginia employers must maintain regular filing schedules:
• Quarterly VA-5 returns for state withholding
• Monthly or quarterly deposit requirements (based on withholding amounts)
• Quarterly VEC-FC-20 wage reports for unemployment
• Annual VA-6 reconciliation by January 31
Your deposit frequency depends on withholding amounts—most small employers file monthly. After your initial years, unemployment rates adjust based on experience, potentially dropping to 0.1% or rising to 6.2%.