Quick answer: Before hiring your first employee in Virginia, get an EIN, register with Virginia Tax for withholding and with the Virginia Employment Commission for unemployment tax, and set up payroll. Then collect Forms I-9, W-4 and VA-4 and report the new hire within 20 days.
Hiring your first employee is a big step, and it comes with a list of registrations and filings that are easy to miss. Here is what Virginia employers need to have in place before the first payday.
Before you hire
- Make sure your business has an EIN from the IRS
- Register with Virginia Tax for employer withholding
- Register with the Virginia Employment Commission for state unemployment tax
- Set up a payroll system, or a payroll provider, that handles tax deposits and filings
- Check whether you need workers’ compensation insurance. In Virginia it is generally required once you regularly have more than two employees
Forms for each new employee
| Form | Purpose |
|---|---|
| Form I-9 | Confirms the employee can work in the United States |
| Form W-4 | Federal income tax withholding |
| Form VA-4 | Virginia income tax withholding |
| Offer letter and pay details | Rate of pay, schedule and pay frequency |
Report the new hire within 20 days
Virginia employers must report every new or rehired employee to the Virginia New Hire Reporting Center within 20 days. It only takes a few minutes online, and most payroll providers can handle it for you.
Paying your employee
- Pay at least the Virginia minimum wage, which rises each January through 2028
- Give a pay statement each payday showing hours, rate and deductions
- Track overtime for hourly employees
- Withhold federal and Virginia income tax, Social Security and Medicare
Payroll filings that follow
| Filing | When |
|---|---|
| Federal tax deposits | Monthly or semiweekly, based on your deposit schedule |
| Form 941 | Quarterly, by the last day of the month after each quarter |
| Virginia withholding returns | On the schedule Virginia Tax assigns |
| Virginia unemployment tax reports | Quarterly |
| Form 940 | Annually, by January 31 |
| W-2s | To employees and filed by January 31 |
Tip: Late payroll tax deposits are one of the most expensive mistakes a small business can make. Automating payroll is usually worth it from the first hire.
Employee or contractor?
If you control when, where and how someone works, they are likely an employee, not a contractor. Our 1099-NEC guide covers the contractor side.
→Related guideVirginia Minimum Wage 2026: What Employers Need to KnowBefore setting pay rates, check the current and scheduled Virginia minimum wage increases.Hiring in Virginia FAQs
How much does an employee cost beyond their wages?
Employers pay 7.65% for Social Security and Medicare, federal unemployment tax on the first $7,000 of wages, and Virginia unemployment tax on the first $8,000 of wages. Workers’ compensation and any benefits add to the total.
How often do I have to pay employees in Virginia?
Hourly employees must be paid at least every two weeks or twice a month, and salaried employees at least once a month.
Do small businesses in Virginia have to offer health insurance?
No. The federal employer mandate applies only to employers with 50 or more full time equivalent employees. Smaller employers may offer coverage but are not required to.
When is a final paycheck due in Virginia?
An employee who leaves or is let go must be paid all wages owed by the next regular payday.
What posters do Virginia employers need?
Employers must display required federal and Virginia workplace notices, such as the minimum wage poster, where employees can see them. Payroll providers often supply a current set.
Let us set up payroll
Our payroll services handle registrations, new hire setup, tax deposits and every filing for small businesses across Northern Virginia, DC and Maryland.
This article is general information and not tax advice for your situation. Tax rules change, so talk with a qualified professional before making decisions.
