Payroll taxes
What are Virginia employer payroll taxes on a first employee?
Short answer: on a first Virginia employee paid $20 an hour for 40 hours a week, employer payroll taxes are $3,424.40 a year. That is $3,182.40 of employer FICA, $42.00 of net FUTA, and $200.00 of Virginia state unemployment tax at the official new-employer rate of 2.50% on the first $8,000.00 of wages. You will also withhold Virginia income tax from the employee’s pay and send it to the state. That withheld tax is the employee’s money, not an extra employer cost, so it is left out of the dollar totals below. Workers’ comp and payroll software are extra costs, not payroll taxes.
Key takeaways
- Federal employer Social Security (6.2% up to the 2026 wage base of $184,500), employer Medicare (1.45% of all wages), and net FUTA (usually 0.6% on the first $7,000) apply in Virginia the same way they do in every state (IRS Publication 15, IRS Topic 751, IRS Topic 759 (Form 940/FUTA)).
- Virginia unemployment tax is administered by Virginia Employment Commission. The U.S. DOL January 2026 Significant Provisions table (PDF) lists a 2026 taxable wage base of $8,000.00 and a new-employer rate of 2.50%, which is $200.00 on this $41,600 wage example if that rate applies and wages reach the base. Your assigned rate can differ.
- State income-tax withholding is required in Virginia. Look up current tables and registration on the Virginia tax agency site or the IRS list of state government websites. Withholding is not an employer payroll-tax cost.
- Report the new hire within twenty (20) days of the employee's first day on the job. The official source is the ACF State New Hire Reporting contacts and program requirements; a reporting page is the official new-hire reporting page.
On this page
See the Virginia stack Opens the calculator at $20 an hour, 40 hours, and Virginia, with the official 2026 wage base filled in and the official new-employer rate prefilled (edit it if your notice differs).
Open the calculator with these figuresFederal employer payroll taxes that apply in Virginia
When you hire a W-2 employee in Virginia, the federal employer share has three parts, and they do not change just because the work is in Virginia:
- Employer Social Security, 6.2% of wages up to the 2026 Social Security wage base of $184,500 (IRS Publication 15, IRS Topic 751). On $41,600 that is $2,579.20.
- Employer Medicare, 1.45% of all wages, with no wage-base cap. On $41,600 that is $603.20.
- FUTA, which is 6.0% on the first $7,000 of wages, usually reduced to a net 0.6% when you pay state unemployment tax on time (IRS Topic 759 (Form 940/FUTA)). For one employee that is $42.00. Credit-reduction states can owe more; check the current IRS credit-reduction list if you are unsure.
Together, those federal employer taxes are $3,224.40 on this $20-an-hour, full-year example. You also withhold the employee share of FICA and any federal income tax; those withheld amounts are the employee’s money, not an extra employer cost.
Virginia unemployment tax (SUTA)
State unemployment insurance is administered by Virginia Employment Commission. The wage base and new-employer rate below come from the U.S. DOL January 2026 Significant Provisions table (PDF), which is the same source used in this site’s calculator. The DOL directory of state unemployment tax agencies is the official contact list if the agency URL changes.
The official DOL table lists a 2026 Virginia taxable wage base of $8,000.00 and a new-employer rate of 2.50%. On this example, SUTA is 2.50% × $8,000.00 = $200.00, because only the first $8,000.00 of wages is taxable. Wages above that base still owe Social Security (until the federal Social Security cap) and Medicare, but not this SUTA.
Your assigned rate can be higher or lower than the new-employer rate. Use the percentage on your unemployment insurance notice if it differs.
State income-tax withholding
Employers in Virginia withhold state income tax from employee wages and send it to the state. The employee completes a state withholding form (or the federal W-4, where Virginia uses it). The withheld amount is not an employer payroll tax, and this page does not invent a withholding dollar amount because it depends on the employee’s elections and current official tables. Register with the Virginia tax agency. The IRS list of state government websites is a second official starting point if you need the department’s home page.
Disability, paid leave, and other state payroll contributions
The official new-employer SUTA rate used here is 2.50% on the first $8,000.00 of wages. If your notice shows a different rate, use that rate in the calculator.
Virginia employers withhold state income tax from employee wages. The amount depends on the employee’s withholding certificate and the current official tables, so this page does not invent a withholding dollar figure. Register and file with the Virginia tax agency.
This page does not list a statewide disability or paid-family-leave payroll tax for Virginia because no official 2026 employer rate was verified here for a separate program. If your agency notice mentions one, enter that rate as an additional cost; do not treat this omission as legal advice that no such program exists.
New-hire reporting in Virginia
Virginia employers must report a new hire within twenty (20) days of the employee's first day on the job. That requirement comes from the official ACF State New Hire Reporting matrix, checked in November 2026. File through the official new-hire reporting page. The ACF State New Hire Reporting contacts and program requirements is the directory if the filing site changes.
New-hire reporting is a filing requirement, not a tax. It still belongs on a first-hire payroll checklist because missing the deadline can bring state penalties. See also paperwork to hire your first employee.
Worked example: $20 an hour, 40 hours, Virginia
This example uses a round $20 wage so you can compare it with the site’s other $20-an-hour pages and with the state payroll taxes for a first employee index. It is not a claim about what helpers in Virginia earn, and it leaves out workers’ comp, health coverage, retirement, paid time off, and payroll software.
| Line (one year, 2,080 hours) | Amount |
|---|---|
| Wages at $20.00/hour (2,080 hours) | $41,600.00 |
| Employer Social Security (6.2%) | $2,579.20 |
| Employer Medicare (1.45%) | $603.20 |
| FUTA (0.6% net, first $7,000) | $42.00 |
| Virginia SUTA (2.50% on the first $8,000.00) | $200.00 |
| Employer payroll taxes in this example | $3,424.40 |
SUTA and FUTA are front-loaded: you pay them only until each wage base is met, so early pay periods cost more than later ones in the same calendar year. Employer Medicare continues all year, and employer Social Security continues until the federal wage base is met.
What this example leaves out
Workers’ compensation is insurance, not a payroll tax. Premiums vary by Virginia class code, carrier, and payroll, and this site only prefills verified Indiana ICRB advisory rates when you select Indiana. See workers’ comp for a first employee. Overtime, bonuses, and benefits also change the total. For the week-by-week federal pattern at this same wage, see payroll taxes on a $20-an-hour employee.
Run your own wage and hours The calculator loads Virginia’s 2026 unemployment wage base from the official DOL table.
Open the Virginia calculatorOther state payroll-tax pages
Every state and the District of Columbia in this series uses the same $20-an-hour example and the same official DOL and ACF sources, with the figures that actually apply in that jurisdiction. Start from the state payroll taxes for a first employee index, or go to Vermont employer payroll taxes or Washington employer payroll taxes.
Frequently asked questions
What payroll taxes does a Virginia employer pay on a first employee?
You pay federal employer Social Security at 6.2%, employer Medicare at 1.45%, federal unemployment tax (FUTA) at a net 0.6% on the first $7,000 for most employers, and Virginia state unemployment tax. The U.S. DOL January 2026 table lists a new-employer rate of 2.50% on the first $8,000.00 of wages. On a $20-an-hour, 40-hour employee, those employer payroll taxes total $3,424.40 a year. Workers' comp is insurance, not a payroll tax.
What is Virginia's unemployment tax rate for a new employer in 2026?
The U.S. DOL January 2026 state UI table lists a Virginia taxable wage base of $8,000.00 and a new-employer rate of 2.50%. On this $41,600 wage example that is $200.00 if the published rate applies and wages reach the base. Your assigned rate can differ.
Does Virginia require state income-tax withholding on a first employee?
Yes. Virginia employers withhold state income tax from employee wages and remit it to the state tax agency. The withheld amount is the employee's tax, not an employer cost, and this page does not invent a withholding dollar figure. Confirm current tables and registration on the official state tax site.
When do I have to report a new hire in Virginia?
Virginia employers must report a new hire within twenty (20) days of the employee's first day on the job, according to the official ACF State New Hire Reporting matrix checked in November 2026. Federal law requires reporting within 20 days unless the state requires it sooner.
Does Virginia have a disability or paid-leave payroll tax?
This page does not list a verified 2026 employer rate for a separate statewide disability or paid-leave payroll tax in Virginia. If your agency notice includes one, use that rate. Workers' compensation is insurance, not a payroll tax.
Federal figures were checked against 2026 IRS Publication 15 and IRS Topics 751 and 759 in November 2026. State unemployment wage bases and new-employer rates come from the U.S. DOL January 2026 Significant Provisions table. New-hire reporting deadlines come from the official ACF State New Hire Reporting matrix. Confirm the rate on your unemployment insurance notice, and confirm current withholding, disability, and paid-leave rules with the linked state agencies before you hire.