Cost to hire an employee in Virginia
On top of a $50,000 salary, a Virginia employer pays roughly $4,432 in payroll taxes and insurance before benefits, about 8.9% of wages.
Last verified November 2, 2026. Sources: oui.doleta.gov, oregon.gov.
What a Virginia employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Virginia unemployment (SUTA) | 2.5% new employer 0.1%–6.2% experienced | First $8,000 |
| Workers' compensation | ~$0.73 per $100 | Varies by job class |
Fund-building charge and pool cost charge are included in the assigned rate. A separate administrative fee (reported as 0.05%) began in 2025.
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,175 | 9.1% | $38,175 |
| $50,000 | $4,432 | 8.9% | $54,432 |
| $75,000 | $6,527 | 8.7% | $81,527 |
| $100,000 | $8,622 | 8.6% | $108,622 |
| $150,000 | $12,812 | 8.5% | $162,812 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Virginia vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Virginia | $8,000 | 2.5% | $4,432 |
| Kentucky | $12,000 | 2.7% | $4,571 |
| Maryland | $8,500 | 2.6% | $4,533 |
| North Carolina | $34,200 | 1% | $4,684 |
| Tennessee | $7,000 | 2.7% | $4,456 |
| West Virginia | $9,500 | 2.7% | $4,394 |
| District of Columbia | $9,000 | 2.9% | $4,868 |
Frequently asked questions
- How much does it cost to hire an employee in Virginia?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,432 (8.9%), before benefits, for a total of $54,432.
- What is the Virginia SUTA rate for new employers?
- New employers generally pay 2.5% on the first $8,000 of each employee's wages. Experienced employers pay between 0.1% and 6.2%.
- Do Virginia employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.