Payroll Cost per Employee in Virginia
2026 estimates — total employer cost including taxes and benefits
Min wage in Virginia: $7.25–$15.00/hr (check current state rate) | SUTA: ~2.7% on wages (varies)
Calculate Total Payroll Cost in Virginia
Payroll Tax Breakdown — Virginia 2026
| Tax / Cost | Rate / Rule | Annual Amount |
|---|---|---|
| Base salary | Per agreement | $59,400 |
| Social Security (employer) | 6.2% on first $168,600 | $3,683 |
| Medicare (employer) | 1.45% of all wages | $861 |
| FUTA (federal unemployment) | 0.6% on first $7,000 | $42 |
| Virginia SUTA | ~2.7% on wages (varies) | $450 |
| Benefits (health, 401k, etc) | ~18% of salary (typical) | $10,692 |
| Total Employer Cost | $75,506 | |
Based on $59,400 median salary in Virginia. SUTA rate shown is approximate average — actual rate depends on claims history. Additional: State-specific payroll taxes — verify with your state labor department.
Payroll Requirements in Virginia
1. Virginia Payroll Tax & Compliance Overview
Virginia payroll costs are above the national average. Key employer requirements: state income tax withholding (2–6%), state unemployment insurance (SUTA: ~2.7% on wages (varies)), plus the standard federal obligations (FICA 7.65%, FUTA up to $420/employee). State-specific payroll taxes — verify with your state labor department.
2. Top Tips for Virginia Employers
Virginia employers: use payroll software like Gusto, QuickBooks Payroll, or Rippling to automate state-specific tax calculations. These typically cost $40–$150/month for small businesses — far less than the penalty risk of manual payroll errors. Set up pay-as-you-go workers' comp tied to each payroll run to eliminate audit surprises.
3. Key Virginia Payroll Facts
- Minimum wage: $7.25–$15.00/hr (check current state rate)
- State income tax: 2–6%
- State unemployment (SUTA): ~2.7% on wages (varies)
- Additional: State-specific payroll taxes — verify with your state labor department
Run Virginia Payroll Automatically
Automated payroll software handles Virginia tax calculations, filings, and W-2s for $40–$150/month.
Payroll Software Cost Comparison — Virginia 2026
At $6,292/month total employer cost, automating payroll for $59,400 median salary employees costs 27% above base salary. Software adds just 0.1–0.3% but eliminates costly compliance errors.
| Software | Base Price | Per Employee |
|---|---|---|
| Gusto Top pick | $46/mo | +$6/emp/mo |
| QuickBooks Payroll Core | $45/mo | +$6/emp/mo |
| ADP Run Essentials | ~$65/mo | +$4/emp/mo |
| Rippling | $35/mo | +$8/emp/mo |
Prices as of 2026. All four platforms handle Virginia state tax filings automatically. 10-employee team example: Gusto = $106/mo, QuickBooks = $105/mo, ADP ≈ $105/mo, Rippling = $115/mo.
Frequently Asked Questions
Virginia Payroll Summary
- →Avg salary: $59,400/yr
- →Total cost: $75,506/yr
- →Overhead rate: ~27% above salary
- →Min wage: $7.25–$15.00/hr (check current state rate)
- →State income tax: 2–6%