Hiring employees in Virginia is a process that requires careful navigation through state and federal employment laws, payroll and tax obligations, and onboarding requirements. Whether you're a new employer, startup founder, or HR professional in a larger company, this guide will help you understand every step in the hiring process — from drafting job descriptions to managing out-of-state employees.
Virginia’s pro-business climate, proximity to Washington D.C., and growing tech sector make it an appealing location for employers and job seekers alike. But to stay compliant, employers in Virginia are required to follow a number of state employment laws and administrative procedures.
This 2025 guide gives you the full picture of what you need to know to hire employees in Virginia legally and effectively.
What Are the Legal Requirements to Hire Employees in Virginia?
Before you can officially hire employees in Virginia, U.S., it’s essential to understand the legal framework that governs the employment relationship. From wage standards and employee classification to new hire reporting requirements, Virginia law lays out specific obligations that employers must follow to remain compliant with both federal and state regulations.
Understanding Virginia Employment Laws
Virginia is an at-will employment state. This means employers may terminate an employee at any time, for any lawful reason. However, Virginia law prohibits employment discrimination based on race, age, sex, religion, and other protected characteristics, as outlined in the Virginia Human Rights Act.
Employers must also follow federal and state law on minimum wage in Virginia, which is $12.41 per hour as of January 2025 (it will rise to $ 13.40 per hour on January 2026) as well as overtime, leave to employees, and worker protections such as workers’ compensation.
The Virginia Department of Labor and Industry enforces these employment and labor laws, and employers should regularly consult updates to ensure compliance.
New Hire Reporting Requirements in Virginia
One of the first legal obligations for employers in Virginia is reporting new hires. According to Virginia law, employers must report all newly hired and re-hired employees to the Virginia New Hire Reporting Center within 20 days of the date of hire.
This includes:
- The employee’s full name, address, and SSN
- The employer’s federal employer identification number (FEIN)
- The first date of paid employment
This requirement applies even to part-time employees, and timely filing supports tax processing and child support enforcement.
Employee Classification: Independent Contractors vs. Employees
Classifying employees in Virginia correctly is critical. Mislabeling independent contractors as employees can lead to violations of employment regulations, unemployment tax, and income tax withholding rules.
The Virginia Department of Labor and the Internal Revenue Service (IRS) use specific tests to determine status. Generally, if an individual is subject to control, uses company tools, and performs regular duties, they should be classified as an employee, not a contractor.
Failure to comply may lead to retroactive payroll tax assessments and penalties.
Check out Rivermate’s Guide: Hiring Employees vs. Independent Contractors Benefits
How Do I Start the Hiring Process in Virginia?
Hiring in Virginia involves more than just posting a job ad — it starts with a structured approach that aligns with Virginia employment laws and positions your business to attract top talent. From writing compliant job descriptions to selecting the right recruitment channels, each step in the hiring process plays a critical role in building a reliable and legally sound workforce.
Creating a Job Description for New Hires
Employers must ensure job descriptions are clear, role-specific, and compliant with federal and state anti-discrimination laws, including the Virginia Human Rights Act. Job postings must avoid language that could imply preferences based on protected characteristics such as age, sex, race, religion, disability, or veteran status. This includes indirect references such as “recent graduate” or “energetic young team.”
Each job description should outline:
- Essential functions and responsibilities
- Required qualifications and physical demands (if applicable)
- Work location (remote, hybrid, on-site)
- Compensation details and benefits (especially if covered under state mandates)
- Indication of tipped status (if applicable)
- Whether a background check or drug screening is required (and whether it complies with FCRA requirements)
Where to Advertise Job Openings for Employees in Virginia
Employers may advertise vacancies through both national job boards (e.g., Indeed, LinkedIn) and state-supported resources such as the Virginia Workforce Connection. This platform provides access to a diverse talent pool and supports compliance with certain tax credit initiatives.
Additionally, employers are encouraged to utilize:
- Local chambers of commerce and trade associations
- University and college career services (especially in university towns like Charlottesville, Blacksburg, and Richmond)
- Industry-specific boards and community referrals
Screening Candidates: Tips for Employers
Screening candidates in Virginia must be conducted using objective, job-related criteria to ensure compliance with both state and federal anti-discrimination laws, including the Virginia Human Rights Act and Title VII of the Civil Rights Act. Employers should define essential qualifications, skills, and responsibilities clearly and apply them consistently to all applicants. Avoid any questions during interviews that may suggest bias based on protected characteristics such as age, race, gender, religion, disability, or national origin.
If conducting background checks or drug testing, employers must comply with the Fair Credit Reporting Act (FCRA), which requires prior written consent and proper notice if adverse action is taken. While Virginia allows private employers to use criminal history in hiring decisions, it is recommended to delay such inquiries to reduce legal risk. Employers should document the screening process thoroughly and retain records for at least one year to protect against claims of unlawful hiring practices. Structured interviews using standardized questions can further ensure fairness and legal defensibility.
Are you planning to onboard new employees?
Check out Rivermate's Guide: Best US States to Hire in 2025: Top 10 States for Employers.
What Should Employers Know About Payroll and Taxes?
Once you've hired a new employee, managing payroll correctly becomes a key part of staying compliant with Virginia law. Employers in Virginia are responsible for a range of employment taxes, including federal and state income tax withholding, unemployment insurance, and payroll tax obligations. Setting up these systems early — and understanding the deadlines, forms, and agencies involved — will help prevent penalties and ensure your employees are paid accurately and on time.
Understanding Payroll Tax Obligations in Virginia
Before issuing a single paycheck, employers must register with the following:
- The Virginia Department of Taxation (for state income tax withholding)
- The Virginia Employment Commission (for unemployment insurance taxes)
- The Internal Revenue Service (to obtain a Federal Employer Identification Number)
Once registered, employers are responsible for managing:
Federal income tax withholding and FICA (Social Security and Medicare); State income tax on wages paid to employees in Virginia; Payroll tax filings on a quarterly and annual basis; Local payroll taxes, if required in certain Virginia jurisdictions
All payroll systems should be compliant with both federal and state law, and employers in Virginia are required to maintain detailed wage and tax records for each employee for at least four years.
Income Tax Withholding for New Employees
For each new employee, employers must withhold both federal and Virginia income tax based on completed W-4 and VA-4 forms. These forms determine the amount of tax withheld based on the employee’s filing status and allowances.
Additional requirements include:
- Completing Form I-9 to verify the employee’s identity and work authorization
- Enrolling in E-Verify, if your business has federal contracts or if Virginia law requires it
- Keeping signed tax forms and wage documentation securely stored
Remember that employees are required to submit updated withholding forms if their status changes — for example, due to marriage or new dependents. Accurate withholding prevents underpayment and helps avoid tax-related issues for both the employer and the employee.
Unemployment Insurance Requirements for Employers
The Virginia Employment Commission (VEC) oversees the Unemployment Insurance (UI) program. Most employers in Virginia who pay $1,500 in wages during any calendar quarter or employ at least one person for 20 weeks in a year must register and pay unemployment tax.
Key points:
- UI tax is due on the first $8,000 in wages paid to each employee annually
- The tax rate varies based on your company’s experience rating
- Employers must submit wage reports and pay taxes quarterly
- If you hire employees in Virginia, failure to comply can result in fines and lost eligibility for certain business incentives
UI taxes are used to provide benefits to eligible workers who are temporarily unemployed through no fault of their own. Timely payment ensures support for the Virginia workforce and maintains your business’s good standing with the state.
Check out Rivermate's Comprehensive Tax Compliance Guide for Global Remote Workers.
What Is the Onboarding Process for New Employees in Virginia?
A structured and compliant onboarding process is essential for setting up new employees for success while helping employers meet legal obligations under federal and state law. In Virginia, employers are required to collect specific forms, verify work eligibility, and communicate company policies clearly.
From a compliance standpoint, onboarding new hires ensures that you’ve satisfied new hire reporting requirements, tax documentation, and labor law disclosures (as noted above).
From a culture perspective, it’s your chance to integrate newly hired talent into your team and reinforce your company’s mission and expectations.
Steps to Onboarding New Hires Effectively
To streamline the hiring process and ensure employees feel welcomed and equipped, follow these onboarding steps:
- Set up access and systems: Prepare email accounts, payroll enrollment, benefits systems, and any equipment the employee needs prior to their first day.
- Team introductions and orientation: Provide a tour (in-person or virtual), introduce coworkers, and assign a mentor or point of contact.
- Compliance briefings: Review applicable Virginia employment laws, company policies, workplace safety procedures, and the employee handbook.
- Job-specific training: Outline initial responsibilities, key goals, and internal tools. Early clarity reduces confusion and boosts performance.
- Document acknowledgment: Ensure all forms (W-4, VA-4, I-9) are completed and securely stored according to state employment laws.
Good onboarding reduces early turnover, boosts morale, and ensures legal compliance — particularly for employers and employees navigating complex state laws.
Essential Documents for New Employees
Virginia employers must collect and manage specific documents as part of their onboarding checklist. These forms are required for tax withholding, identity verification, and compliance:
- Form I-9 (federal): Confirms identity and work eligibility
- Form W-4 (federal): Used for federal income tax withholding
- Form VA-4 (state): Used for Virginia income tax withholding
- Direct deposit authorization: Ensures smooth payroll processing
- Acknowledgment of employee handbook: Confirms receipt and understanding of company policies
- Confidentiality agreements, IP agreements, or employment contracts, if applicable
These documents must be stored securely and retained in accordance with both Virginia law and federal employment regulations. Employers should also review their process for reporting newly hired and re-hired employees to the Virginia New Hire Reporting Center within 20 days of the date of hire.
Creating an Employee Handbook: What Employers Must Include
Though not legally required, an employee handbook serves as a vital resource for outlining company policies, legal obligations, and employee rights. In Virginia, a comprehensive handbook can protect your business from liability and help ensure compliance with employment and labor laws.
A well-crafted handbook should cover:
- Equal employment opportunity and anti-discrimination policies (in line with the Virginia Human Rights Act)
- Anti-harassment and workplace conduct rules
- At-will employment disclaimers
- Pay schedule, wage policies, and timekeeping expectations
- PTO and vacation leave policies (especially where employers are required to provide paid leave)
- Family and Medical Leave Act guidelines and any federal family and medical leave rules
- Procedures for disciplinary action and termination
- Remote work, safety, and data security policies
- Compliance with rules for part-time employees, tipped employees, and employees working under employment contracts
Update your handbook regularly to reflect changes in Virginia employment laws, industry standards, and internal policies. Distribute a copy to every new hire and document acknowledgment to cover your legal bases.
If you are planning to start hiring in other U.S. States, check out Rivermate's Guide to Hiring Employees in New York: Your Employer Compliance Resource.
How to Handle Out-of-State Employees in Virginia?
As remote work becomes the norm, it’s increasingly common for employers in Virginia to hire or manage out-of-state employees. Whether you're a Virginia-based employer hiring someone in another state, or an out-of-state company with remote staff working from Virginia, it’s crucial to understand the state employment and tax implications that apply.
The rules for income tax withholding, payroll tax, and labor laws can vary significantly based on where the employee lives and where the work is performed. Failing to comply with the appropriate federal and state requirements could expose your business to penalties or legal action.
Understanding Virginia Tax Implications for Out-of-State Employees
If you’re hiring or managing employees in Virginia who live in another state, or hiring someone living in Virginia to work for an out-of-state entity, you’ll need to navigate multi-state payroll and income tax withholding laws.
Key considerations include:
- Employers may need to withhold state income tax based on the employee’s physical work location — not just where your business is registered.
- Virginia does not have tax reciprocity with surrounding states like Maryland, North Carolina, or D.C., so dual-state withholding may apply depending on residency and work location.
- For remote workers physically located in Virginia, Virginia law requires employers (even those based out-of-state) to comply with Virginia employment rules — including new hire reporting, unemployment insurance, and payroll tax registration.
Employers must consult both the Internal Revenue Service and the Virginia Department of Taxation to understand whether registration or tax nexus is triggered by an out-of-state employee working within Virginia. A qualified tax advisor is highly recommended to avoid missteps.
Labor Laws for Out-of-State Employees Working in Virginia
Out-of-state employers with remote staff working in Virginia must comply with Virginia employment laws, including minimum wage, overtime, workers’ compensation, and anti-discrimination protections under the Virginia Human Rights Act. These rules apply regardless of where the company is headquartered if the work is performed within Virginia. Employees may also be entitled to leave under the Family and Medical Leave Act (FMLA) and other state-specific benefits.
To remain compliant, employers must report remote hires to the Virginia New Hire Reporting Center within 20 days, pay unemployment tax to the Virginia Employment Commission, and ensure access to required labor law notices, even in virtual settings. Protections must also be extended to tipped employees, part-time staff, and workers under an employment contract. Aligning with Virginia law helps mitigate risk and ensures legal coverage across state lines.
What Resources Are Available for Employers Hiring in Virginia?
Virginia offers a variety of tools and support systems to help employers stay compliant, streamline hiring, and connect with local talent. From government agencies to business networks, these resources can simplify everything from new hire reporting to understanding complex employment and labor laws.
Virginia Department of Labor Resources for Employers
The Virginia Department of Labor and Industry provides essential guidance on employment regulations, including wage laws, workplace safety, and employment discrimination protections. Employers can access required labor posters, compliance checklists, and consultation services directly through DOLI.
Check out the resources on official website of the Virginia Department of Labor and Industry.
Utilizing the Virginia New Hire Reporting Center
All employers in Virginia are required to report newly hired and re-hired employees to the Virginia New Hire Reporting Center within 20 days of the date of hire. Reports can be submitted electronically or by mail, helping the state enforce child support laws and verify eligibility for public benefits.
Networking Opportunities for Employers in Virginia
Virginia employers can tap into regional networks like the Virginia Chamber of Commerce, Northern Virginia Technology Council (NVTC), and local economic development boards. These groups offer access to hiring events, policy updates, and collaboration with other businesses targeting Virginia’s workforce.
Ready to Hire in Virginia? Rivermate Can Help.
Hiring in Virginia comes with complex tax, reporting, and compliance requirements. Rivermate’s Employer of Record (EOR) solution handles it all, from payroll and onboarding to employment contracts and Virginia labor law compliance.
Skip the red tape. [Book a demo with Rivermate] and start hiring in Virginia in a fast, compliant, and hassle-free manner.
