Employer of Record for Virginia

Guide to Hiring Employees in Virginia

Your guide to hiring employees in Virginia, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in Virginia through Playroll.

Famous Photo Of Virginia Landmark
Iconic Image Of Virginia

Capital City

Richmond

Timezone

EST

(

GMT-5

)

Paid Leave

None

Income Tax

2% - 5.75%

Employer Tax

0.1% - 6.2%

Leave The hiring to a local expert

Hire in Virginia with ease—our experts handle employment and compliance for you.

Enquire Now

How to Hire Employees In Virginia

Hiring in Virginia for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Virginia:

  • Establishing a local entity: Creating a legal entity in Virginia allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Virginia’s labor laws, helping you hire in Virginia without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Virginia’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Virginia has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Virginia.

Complying with Virginia specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Virginia, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

Virginia is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Northern Virginia, near Washington, D.C., is a growing tech hub, attracting a skilled workforce and major employers in technology and government sectors.

Virginia does not mandate paid family leave, but employers may voluntarily offer it or allow employees to use accrued PTO for family-related leave.

Key Things to Know About Hiring in Virginia

Do I need an EIN or Payroll Tax Number to Employ in Virginia

First, check if employers must register for an EIN or payroll tax number. Then, confirm whether workers must be employed with EINs or tax numbers.

Working Hours in Virginia

Virginia labor laws do not specify maximum working hours for adults. However, employers are required to pay overtime at a rate of one and a half times the regular pay for hours worked over 40 in a workweek.

What is considered full-time employment in Virginia?

Virginia law does not define "full-time" employment. This designation is typically determined by the employer's policies or as defined in employment contracts.

Probation Period in Virginia

Virginia does not mandate probationary periods for new hires. Employers may establish probation periods based on their internal policies.

Labour Laws in Virginia

Minimum wage in Virginia

As of January 1, 2023, the minimum wage in Virginia is $12.00 per hour. This rate is set to increase to $12.41 per hour on January 1, 2025, based on adjustments tied to the Consumer Price Index.

Virginia Anti-Discrimination Laws

Virginia prohibits employment discrimination based on race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age (40 and older), marital status, disability, and status as a veteran. Employers are prohibited from engaging in discriminatory practices in hiring, firing, promotion, compensation, and other terms of employment.

Famous Virginia Landmark

Onboarding New Hires in Virginia

We can help you get your new employee started in Virginia fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Virginia

Virginia law requires employers to establish regular pay periods, which can be daily, weekly, bi-weekly, semi-monthly, or monthly. The chosen pay frequency must be communicated to employees and consistently maintained.

For comprehensive guidance, it's advisable to consult the Virginia Department of Labor and Industry or legal counsel specializing in employment law.

Looking to grow your team in Virginia?

Stay Compliant: Navigate Virginia’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive Virginia and federal employee benefits for a stronger team.

Book a Demo Default Icon Hover Icon

Virginia Employment Taxes

Employer Tax Contributions

Employment Tax Type Tax Rate
Unemployment Insurance Varies by employer’s experience
Federal Unemployment Tax Act As per federal legislation
Social Security As per federal legislation
Medicare 0.0145
Workers’ Compensation Insurance Varies based on industry and claims history

Employee Payroll Tax Contributions

Employee Payroll Tax Contribution Tax Rate
Income tax 2%-5.75%
Social Security Tax As per federal legislation
Medicare Tax As per federal legislation
Additional Medicare Tax (High Earners) 0.9% on wages over $200,00

Tax Due Dates in Virginia

In Virginia, the standard deadline for filing individual income tax returns is May 1 each year. If this date falls on a weekend or holiday, the deadline is extended to the next business day. 

Pension in Virginia

Pensions are not mandatory in Virginia, but under the RetirePath Virginia program, employers with 25+ employees, operating for 2+ years, and without a retirement plan must provide access to one. Employers only facilitate payroll deductions; no contributions are required.Good to know: Non-compliance may result in a $200 fine per employee annual

Info Icon

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Virginia tailored to your needs.

CTA Image showing employees in various countries across the globe
Employee Cost Calculator

Get an instant breakdown of the true costs of hiring in Virginia.

Calculate Now Default Icon Hover Icon

Paid and Unpaid Leave Policies in Virginia

What are Mandatory Leave Entitlements in Virginia?

Type of Leave Time Period Mandatory Pay Status Eligibility Criteria
Annual Leave Determined by employer No Unpaid unless employer provides As defined by employer
Maternity Leave As stipulated by federal FMLA legislation Yes (FMLA if eligible) Unpaid As stipulated by federal FMLA legislation
Paternity Leave As stipulated by federal FMLA legislation Yes (FMLA if eligible) Unpaid As stipulated by federal FMLA legislation
Sick Leave Determined by employer No, except for specific home health workers Unpaid unless employer provides Employer policy
Military Leave Duration of military duty Yes Unpaid Members of National Guard or reserves
Jury Duty Duration of Jury duty Yes Unpaid An employee summoned for jury duty
Parental Leave As stipulated by federal FMLA legislation Yes (FMLA if eligible) Unpaid As stipulated by federal FMLA legislation
Bereavement Leave Determined by employer No Unpaid unless employer provides As defined by employer
Emergency Disaster Leave Up to 80 hours annually Yes Paid Employees providing emergency services or disaster victims meeting

Paid Time Off in Virginia

Virginia does not mandate employers to provide paid time off (PTO) for vacation or personal reasons. Employers who choose to offer PTO must adhere to their established policies or employment contracts.

Maternity Leave In Virginia

In Virginia, there is no state-mandated maternity leave. Employees rely on the federal Family and Medical Leave Act (FMLA), which provides unpaid, job-protected leave for eligible employees to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any maternity leave would depend on the employer’s policies. Some companies may offer paid maternity leave voluntarily as a benefit.

Paternity Leave In Virginia

In Virginia, there is no state-mandated paternity leave. Eligible employees may qualify for unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA) to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any paternity leave would depend on the employer’s specific policies, as Virginia law does not provide additional leave requirements for paternity.

Sick Leave In Virginia

Virginia does not require private employers to provide paid or unpaid sick leave, except for certain home health workers. Employers who offer sick leave must comply with their established policies or employment contracts. Additionally, eligible employees may use FMLA leave for their own serious health conditions.

Military Leave In Virginia

Federal law (USERRA) provides unpaid leave and job protection for employees in the armed forces, including the National Guard and Reserves, ensuring reemployment rights upon return from service.

Jury Duty in Virginia

Employers are not required to pay employees for time spent responding to a jury summons or serving on a jury. However, they may not discharge or take any adverse action against an employee for attending jury duty, provided the employee gives reasonable notice. Employers also cannot require employees to use vacation or sick leave for jury duty.

Voting Leave

Virginia does not have a law requiring employers to provide leave for voting.

Bereavement Leave

There is no state requirement for bereavement leave. Employers may offer it based on their policies.

Emergency/Disaster Leave

Virginia provides up to 80 hours of paid leave annually for eligible employees to provide emergency services during disasters. This also applies to employees who are victims of disasters meeting specific criteria.

It’s Easy To Manage Benefits For Employees In Virginia With Playroll

Benefit Requirements for Employers in Virginia

Are employers required to provide health insurance in Virginia?

In Virginia, employers with 50 or more full-time equivalent employees are required to provide health insurance that meets federal standards under the Affordable Care Act (ACA). Employers with fewer than 50 employees are not mandated to offer health insurance but may choose to do so to attract and retain talent

Do part-time employees get benefits in Virginia?

Virginia law does not require employers to provide benefits to part-time employees. However, employers may offer benefits to part-time staff based on company policies or employment agreements.

Are employers required to offer 401k in Virginia?

As of July 1, 2023, Virginia requires employers with 25 or more employees, who have been in operation for at least two years and do not offer a qualified retirement plan, to facilitate employee access to the state-sponsored retirement program, RetirePath Virginia. Employers already offering a qualified plan, such as a 401(k), are exempt from this requirement. 

Employment Termination Protocols in Virginia

Termination Process in Virginia

Virginia follows the "at-will" employment doctrine, allowing employers to terminate employees at any time, for any reason, or for no reason, provided the termination does not violate specific legal protections. Employers must ensure that terminations do not infringe upon federal or state anti-discrimination laws, which prohibit dismissals based on race, colour, religion, sex, national origin, age (40 or older), disability, marital status, or pregnancy.

Good to know: Additionally, employers cannot terminate employees for reasons that contravene public policy, such as refusing to engage in illegal activities or exercising legal rights like filing a workers' compensation claim.

Notice Period in Virginia

Under Virginia's at-will employment framework, employers are not legally required to provide advance notice before terminating an employee, unless an employment contract or company policy stipulates otherwise. However, upon termination, employers must pay all wages or salaries due for work performed prior to termination on or before the date the employee would have been paid had their employment not ended

Severance in Virginia

In Virginia, employers are generally not obligated to provide severance pay upon termination, unless there is a specific employment contract or company policy that requires it. If severance pay is offered, it is typically in exchange for the employee's waiver of certain rights, often formalized through a severance agreement. Employees are advised to consult with an attorney before signing such agreements to fully understand the rights they may be waiving.

Hiring Employees in Virginia with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like Virginia's superannuation system (if applicable).

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Virginia's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Virginia's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Virginia's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by [State]'s labor laws, such as health insurance, pension contributions, and statutory leave.

Back to Top

Copied to Clipboard

Woman with glasses
Woman with glasses

Take your business to new places

Employer of Record for Virginia

  • hire icon Hire employees without entity setup.
  • handshake icon Full compliance, we assume 100% liability.
  • gift icon Handle local payroll and benefits seamlessly.
  • headphones icon 24/5 responsive real-human support.
  • money icon Transparent pricing, no hidden fees.

FAQS

FAQs About Hiring In Virginia

What is the minimum wage in Virgina?

As of January 1, 2024, Virginia’s minimum wage rates are:

  • $13.00 per hour.
  • Applies across all sectors.
  • Scheduled to increase to $15.00 per hour by 2026.

Playroll makes growing your team in Virginia effortless. Ready to start?

The HR Platform built to scale your global team.