What payroll taxes does a Virginia employer pay?

Employers pay the 7.65% FICA match (6.2% Social Security to the $168,600 wage base plus 1.45% Medicare with no cap), 0.6% federal FUTA on the first $7,000 of each worker's wages, and Virginia state unemployment insurance (SUI) on the first $8,000 of wages at their assigned rate.

What is Virginia's new-employer SUI rate?

New employers in Virginia are generally assigned a standard rate around 2.5% to 2.73% on the $8,000 taxable wage base for their first years, after which the Virginia Employment Commission assigns an experience rate. Construction-industry new employers may pay a higher rate.

Does Virginia have a state disability or paid-leave payroll tax?

No. Unlike states such as California or New York, Virginia does not levy a state-mandated disability insurance (SDI) or paid family and medical leave (PFML) payroll tax on employers. SUI and the federal FICA/FUTA shares are the employer's main payroll taxes.

Why does FUTA only apply to the first $7,000?

FUTA is capped at the first $7,000 of each employee's annual wages. With the standard 5.4% state credit, the effective federal rate is 0.6%, or $42 per employee per year. Without the full credit the rate can be higher.

Is the Medicare portion capped?

No. The 1.45% employer Medicare share applies to all wages with no cap. The 0.9% additional Medicare on high earners is withheld from the employee only — employers do not match it.

Virginia Employer Payroll Tax Calculator

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Hiring in Virginia means paying employer-side payroll taxes on top of each worker’s salary. This calculator estimates the three main components — the FICA match, federal FUTA, and Virginia state unemployment insurance — so you can budget the true cost of an employee.

How it works

Employers match the employee FICA contribution: 6.2 percent Social Security up to the annual wage base and 1.45 percent Medicare on all wages.

FICA match  = 6.2% × min(wage, 168,600) + 1.45% × wage
FUTA        = 0.6% × min(wage, 7,000)
VA SUI      = SUI rate × min(wage, 8,000)

FUTA applies only to the first 7,000 dollars per employee and, with the standard state credit, has an effective rate of 0.6 percent. Virginia SUI applies to the first 8,000 dollars at your assigned experience rate; new employers use a standard rate near 2.73 percent. Virginia levies no separate state disability or paid-leave payroll tax.

Example

For one employee earning 60,000 dollars at a 2.73 percent SUI rate: the FICA match is 4,590 dollars (3,720 Social Security + 870 Medicare), FUTA is 42 dollars, and Virginia SUI is about 218 dollars — roughly 4,850 dollars of employer payroll tax for the year.

Notes

Your actual Virginia SUI rate depends on your experience rating and can change each year; check your annual notice from the Virginia Employment Commission. This estimate covers payroll taxes only, not workers’ compensation insurance, benefits, or local business taxes. Verify current rates at irs.gov and vec.virginia.gov.