Congratulations on your decision to become a Virginia new employer! You will need a few things in place before you run your first payroll. For Virginia employer registration, check out our partner, CorpNet.
Federal and Virginia State Tax Accounts
Federal Tax Accounts
Apply for an EIN
Apply for an Employer Identification Number (EIN, aka, FEIN) with the IRS online.
To read more about how to apply for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”
You will be assigned a unique nine-digit number to identify your business for your federal taxes by the IRS. To learn more, read, “What Is an FEIN?”
Enroll in EFTPS
Although it is not required, we suggest you register for the EFTPS (Electronic Federal Tax Payment System).
EFTPS is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot Software. To find out more about the EFTPS, read our article, “What Is EFTPS?”
Virginia State Tax Accounts
Register With the State of Virginia
New employers in Virginia need to register their business with the:
Virginia Department of Taxation for a payroll withholding account for state income taxes (SIT)
Virginia Employment Commission for state unemployment insurance (SUI)
You can use the Virginia Tax Online Services for Businesses to register for both of these accounts. This account will be used for filing and paying your SIT and SUI taxes also.
Get Your SUTA Rate
New Virginia employers receive the initial base tax rate of 2.5% (+ add-ons) for 2026 until eligible for a calculated rate. Please visit the Virginia Employment Commission for more information.
You will be given a new State Unemployment Tax Assessment (SUTA) rate after 12 months of taxable payroll, and then January 1st of each year.
To learn more about SUTA, read our article, “What Is SUTA Tax?”
State-mandated Requirements
Sign up for Workers’ Comp Insurance
You must have workers’ comp insurance if you have at least 2 employees in Virginia. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Virginia here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT here.
Offer a Qualifying Retirement Plan
Virginia requires that employers with 25 or more eligible employees who have been in business for at least 2 years enroll in RetirePath or offer another retirement plan.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee
Fill Out Form I-9
Fill out the required Form I-9 for employee work verification in the USA.
This is a two-part form. The first section is filled out by the employee and the second part is to be filled out by the employer. To learn more, read, “Form I-9 In a Nutshell.”
You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
Have Employee Fill Out Federal Form W-4
Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?“
Have Employees Fill Out State Form VA-4
Form VA-4 is the Virginia Income Tax Withholding Exemption Certificate for state income taxes (SIT).
Report New Hire
Virginia employers need to report new employees online within 20 days of hire or rehire with the Virginia New Hire Reporting Center.
To learn more, read, “What Is New Hire Reporting?
Meet Minimum Wage Requirements
Virginia minimum wage is $12.77 per hour for 2026.
By law, you are required to post the minimum wage poster for your employees.
Obtain Labor Law Posters
Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with government agencies for more requirements.
