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Payroll Outsourcing in Virginia
Payroll outsourcing in Virginia means a provider running payroll under Virginia rules: state withholding (progressive, 2% to 5.75%), new hires reported within 20 days, and a discharged employee's final pay by the next regular payday. BEG manages it for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
What a Virginia payroll actually has to get right
General information for 2026, not legal advice. Deadlines and rates change; confirm with the Virginia agency before acting.
| State income tax on wages | Progressive, 2% to 5.75% |
|---|---|
| Pay-frequency law | Hourly weekly or bi-weekly; salaried at least monthly |
| New hire reporting deadline | 20 days (federal default) |
| Final paycheck, discharge | By the next regular payday. [Va. Code 40.1-29] |
| Final paycheck, resignation | By the next regular payday. |
| Accrued PTO at separation | No state law forces a payout. Accrued PTO must be paid out only if your written policy or agreement provides for it, so your policy language controls. |
| 2026 minimum wage | $12.77. Adjusted annually by formula [DOL state minimum wage table] |
| Overtime rule | Federal FLSA rules (weekly over 40) |
| Paid sick and family leave | Limited paid sick mandate for certain health workers |
| Continuation coverage under 20 employees | Virginia Continuation Coverage (Conversion or continuation on termination of eligibility), up to 12 months. Fully-insured group accident and sickness policies where the group policyholder is NOT required to provide federal COBRA continuation (generally employers with 2 to 19 employees) [Va. Code section 38.2-3541 (Conversion or continuation on termination of eligibility)] |
Registrations and filings a provider handles in Virginia
Virginia taxes wages (progressive, 2% to 5.75%), so a Virginia employer carries a state withholding account and a state deposit schedule on top of the federal one, plus a separate Virginia unemployment insurance account with quarterly wage reports, and new hire reports due within 20 days (federal default).
Where Virginia diverges from the federal baseline
Pay frequency: hourly weekly or bi-weekly; salaried at least monthly. The run calendar is set to that rule at implementation so a schedule change never becomes a wage claim.
Overtime follows federal FLSA rules (weekly over 40), so the federal regular-rate rules govern: bonuses, shift differentials and commissions all fold into the rate before the premium is applied.
On discharge in Virginia the final check is due by the next regular payday, and on resignation by the next regular payday. Accrued PTO follows the written policy, so the handbook language decides whether the last check includes it. Full detail on the Virginia final paycheck rules page.
Leave: limited paid sick mandate for certain health workers. Sick and vacation accrual in Virginia follow the employer's own policy, and payroll tracks exactly what that policy promises, no more. Remote employees working from a mandate state are the exception: their leave follows the state they work in, not Virginia.
What BEG managed payroll includes for Virginia employers
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum and no setup fee. Virginia withholding and unemployment registration, quarterly and annual state filings, new hire reporting within 20 days (federal default), final-pay runs on the Virginia deadline, and year-end W-2s are all inside that price. Live in 3 to 5 business days from signing.
Managed Payroll, Handled.
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Frequently Asked Questions
Does Virginia have state income tax withholding?
Yes. Virginia taxes wages (progressive, 2% to 5.75%), so every employer with Virginia employees registers a state withholding account, withholds from each check and remits on the state's deposit schedule alongside federal deposits.
When is a final paycheck due in Virginia?
On discharge: by the next regular payday. On resignation: by the next regular payday. No state law forces a payout. Accrued PTO must be paid out only if your written policy or agreement provides for it, so your policy language controls. Source: Va. Code 40.1-29.
How often must Virginia employers pay employees?
Virginia pay-frequency rule: hourly weekly or bi-weekly; salaried at least monthly. A payroll provider sets the run calendar to that rule at setup, so the schedule is never the thing that creates a wage claim.
How fast must new hires be reported in Virginia?
Virginia requires new hire reporting within 20 days (federal default). That matches the federal default, and the report goes to the Virginia new hire directory, not the IRS.
Does Virginia require paid sick leave or paid family leave?
Limited paid sick mandate for certain health workers. With no statewide sick-leave mandate, Virginia accrual rules come from the employer's own policy, and payroll tracks whatever that policy promises.
What is the Virginia minimum wage in 2026?
$12.77. Adjusted annually by formula. Overtime in Virginia: federal FLSA rules (weekly over 40).
What does managed payroll cost for a Virginia business?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum and no setup fee. Virginia withholding, unemployment filings, new hire reports and year-end W-2s are included, not add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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