Virginia employer payroll tax calculator 2026
Hiring in Virginia? New Virginia employers pay 2.55% state unemployment tax on the first $8,000 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $4,836 a year in employer payroll taxes — $204.00 of it to Virginia.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (2.55% on $8,000.00) | $204.00 |
| Employer payroll taxes | $4,836.00 |
| Total cost before benefits | $64,836.00 |
Per two-week payroll: $2,493.69. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Virginia unemployment tax (SUTA) for new employers
New employers pay a 2.5% base rate plus add-ons (a pool cost charge, and a 0.2% fund-building charge when the trust fund is low) and a 0.05% administrative fee. The 2026 add-ons weren't published, so treat 2.55% as the floor. The rate is 2.5% base rate + 0.05% administrative fee, before pool-cost and fund-building charges.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Virginia on time and FUTA is 0.6% on the first $7,000. If Virginia ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Virginia payroll programs
- Virginia's paid family and medical leave program starts contributions on April 1, 2028.
What an employee costs in Virginia
| Salary | Federal employer taxes | Virginia employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $204.00 | $43,306.00 | 8.3% |
| $60,000 | $4,632.00 | $204.00 | $64,836.00 | 8.1% |
| $100,000 | $7,692.00 | $204.00 | $107,896.00 | 7.9% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Virginia?
About $43,306 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $204.00 of Virginia employer taxes, before benefits. That's $1,665.62 per two-week payroll.
How much does a $60,000 employee cost in Virginia?
About $64,836 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $204.00 of Virginia employer taxes, before benefits. That's $2,493.69 per two-week payroll.
How much does a $100,000 employee cost in Virginia?
About $107,896 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $204.00 of Virginia employer taxes, before benefits. That's $4,149.85 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $12,246 a year taken out of pay — federal income tax, their own Social Security and Medicare and Virginia taxes — and takes home $47,754 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $4,836.00 of employer taxes. See the employee's side line by line in the Virginia paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Virginia figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Virginia Employment Commission — Employer UI tax FAQs — new employers: initial base rate 2.5% plus add-ons; taxable wage base $8,000 (checked 2026-09-28)
- Virginia Appropriation Act — administrative fee — a separate administrative fee equal to .05% of taxable wages
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Virginia SUTA rate for new employers?
2.55% in 2026 (2.5% base rate + 0.05% administrative fee, before pool-cost and fund-building charges), on the first $8,000 of each employee's wages. New employers pay a 2.5% base rate plus add-ons (a pool cost charge, and a 0.2% fund-building charge when the trust fund is low) and a 0.05% administrative fee. The 2026 add-ons weren't published, so treat 2.55% as the floor.
What is the Virginia unemployment tax wage base for 2026?
$8,000 per employee per year.
How much does it cost to employ someone for $60,000 in Virginia?
About $64,836 a year before benefits: $4,632.00 of federal employer taxes and $204.00 for Virginia, at the new-employer rate with 5 employees.