Virginia Employee Cost Calculator (2026)
Last updated: October 2026
Virginia employers pay federal payroll taxes plus Virginia unemployment insurance — 2.73% for new employers on the first $8,000.00 of each employee's wages. Use the calculator to see the total cost of a hire.
Total annual cost
$65,000.40
1.08× salary · $5,000.40 on top of wages
Monthly cost
$5,416.70
Loaded hourly cost
$31.25
Per hour actually worked
$32.50
| Wages | $60,000.00 |
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (federal unemployment) | $42.00 |
| State unemployment (SUTA) | $218.40 |
| Workers' comp | $150.00 |
| Total annual cost | $65,000.40 |
Estimates for planning purposes only. Not tax, legal or accounting advice. Confirm your rates with your state agency or a payroll professional.
Virginia employer payroll taxes at a glance
| New employer SUTA rate | 2.73%Historically about 2.73% including pool/fund-building charges — confirm the current-year assigned rate with the VEC. |
| Experienced employer SUTA range | 0.1% – 6.2% |
| SUTA taxable wage base | $8,000.00Fixed by statute. |
| Max SUTA per employee per year | $218.40 |
| Paid family/medical leave program | No |
| State income tax on wages | Yes — employers withhold; not an employer cost |
| State minimum wage | $12.77/hour |
| Source | Virginia unemployment insurance agencyVerified 2026-10-11 |
What it costs to hire in Virginia
Salary
$40,000.00
Total annual cost
$50,620.40
1.27× salary · SUTA $218.40
Salary
$60,000.00
Total annual cost
$72,800.40
1.21× salary · SUTA $218.40
Salary
$90,000.00
Total annual cost
$106,070.40
1.18× salary · SUTA $218.40
What's different about hiring in Virginia
- Virginia's SUTA wage base is low ($8,000.00), so unemployment tax is mostly paid in the first months of the year.
- Hiring remotely in another state? You generally owe SUTA in the state where the employee works — compare rates in neighboring states below.
Compare neighboring states
| State | New employer rate | Wage base | Max SUTA per employee |
|---|---|---|---|
| Virginia | 2.73% | $8,000.00 | $218.40 |
| Maryland | Varies | $8,500.00 | Varies |
| District of Columbia | 2.7% | $9,000.00 | $243.00 |
| West Virginia | 2.7% | $9,500.00 | $256.50 |
| Kentucky | 2.7% | $12,000.00 | $324.00 |
| Tennessee | 2.7% | $7,000.00 | $189.00 |
| North Carolina | 1% | $34,200.00 | $342.00 |
Hiring outside the US?
Compare the cost of an international contractor or EOR employee before you commit to a US hire.
See how Deel worksPaying vendors and contractors?
Automate accounts payable and payments so contractor costs stay predictable.
See how BILL worksFrequently asked questions
Sources & methodology
- Virginia unemployment insurance agency
- SSA — Social Security wage base
- IRS Topic 759 — FUTA
- Patriot Software — state unemployment tax rate chart
Last verified: 2026-10-11
Employee cost calculators for other states
- Alabama
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Tax rates are approximate — always verify with your state's revenue department.