Paycheck Calculator Virginia - VA

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Virginia - VA Paycheck Calculator: Hourly and Salary

Virginia is a U.S state located between the Appalachian Mountains and the Atlantic Coast in the Mid-Atlantic and Southeastern region of the United States. The state is officially known as the Commonwealth of Virginia. The capital of Virginia is Richmond. Virginia Beach is the largest city, while Washington-Arlington-Alexandria is the largest metro of the state.

The Commonwealth of Virginia offers endless reasons to settle in, including rich history, a well-educated population, a flourishing job market, a diverse population, and a booming economy. So if you have got amazing job offers, ground-breaking business ideas, or some other solid reason to relocate to Virginia, then this guide is just for you.

Our Finance and Travel experts have shared their expertise to create this unique guide that covers the following topics:

  • The thing you must know before moving to Virginia
  • Virginia Payroll Facts
  • How to Calculate Paycheck in Virginia? – This section would benefit both employers and employees in the following ways:
    • Help job seekers to compare several job offers in terms of take-home pay and choose the best one.
    • Help entrepreneurs to compare different business opportunities in Virginia in terms of employment cost.
    • Help employees of Virginia to calculate their upcoming Paycheck amount for verifying and budgeting.
    • Help employers in Virginia to calculate Paycheck amounts for multiple employees instantly using our Virginia Paycheck Calculator.
  • Federal and Virginia Payroll Laws to ensure your paycheck complies with the law.
  • Frequently Asked Questions

Good luck, and we hope our guide will guide your ship in the perfect next direction! So let's get started.


Things You Must Know Before Moving To Virginia

Moving from one town or state to another isn't an easy job. In fact, it could be a life-changing decision that must be taken after a lot of research. So if you are mulling over to move to Old Dominion State, that you must know about some of the following factors:

Cost of Living

Living in Virginia will cost you almost similar to most of the other states, as the cost of living index of Virginia is 103.7, which is slightly higher than the national average of 100 Points. Housing is the primary factor that contributes the most to overall high living costs. In contrast, other factors like utilities, health, grocery, transportation, and miscellaneous expenses are almost equal to the national average.

Cost of Housing

Buying or renting a house in Virginia is going to cost some extra bucks, compared to most of the other U.S states. The Median Home Value in the state is $258,400, while the national median home value is $231,200. Moreover, the median rent expense in Virginia for a single bedroom is $1,069, and for a double bedroom is $1,262.

However, the cost of housing varies depending on city and location within the state. Cities like Pulaski, Big Stone Gap, Marion, and Bluefield are among the cheapest places to live in Virginia.

Education

Virginia is only behind Maryland in the South and 14th best overall in the United States for the best school system. Moreover, it also houses several prestigious colleges and universities (including a Top 30 national universities) to secure the bright future of your kids.

Some of the well-known educational institutes include the University of Virginia (Charlottesville), College of William and Mary (Williamsburg), Arlington Public Schools (Arlington), and Falls Church City Public Schools (Falls Church).

Weather

Virginia has one of the most diverse and unpredictable climates in the United States. Overall the state has all four seasons with comparatively mild weather, so summers are not too hot, and winters are not too cold.

The southern portion of Shenandoah Valley, Roanoke Valley, and east of the Blue Ridge Mountains has a mix of a humid, subtropical zone, whereas, west of the Blue Ridge has a humid continental zone.

Business and Job Opportunities

As Virginia is in close proximity to Washington, D.C, most of Virginia's residents are in government jobs. Nevertheless, the state also a flourishing job market, with a relatively lower unemployment rate of 3.4% and the minimum wage of $7.25/hour.

The fastest-growing job in the Old Dominion State includes physical therapists, nurse practitioners, occupational therapists, and statisticians. Furthermore, the highest-paying job in the state contains CEO, nurse anesthetist, surgeon, and pediatrician.

The Old Dominion State has 25th best economy among the 50 states, where the business environment is ranked on 20 and growth on number 40, which is not that good but still giving a ray of hope for entrepreneurs to start a small business in Virginia. Entrepreneurs can look for opportunities in some of the top industries in the state, such as Healthcare, Retail, Professional, and Education.

Outdoor Activities

Got to enjoy weekends and vacations? Looking for fun in Virginia? There are endless outdoor opportunities for you in this state. You can visit historical and natural attractions like Williamsburg, Virginia Beach, George Washington's Mount Vernon, Shenandoah Caverns, and Arlington National Cemetery.

Moreover, the state is also a foodie's paradise having restaurants and bars like Sushi King (in various locations), PX (Alexandria), 2941 Restaurant (Falls Church), and Peking Gourmet Inn (Falls Church).

Some other must-visit places include Parade of Sail, Tysons Corner, Luray Caverns, Grayson Highlands State Park, and Smith Mountain Lake (Moneta) offering history, fun, as well as opportunities for boating, swimming, fishing, hiking, and more.


Pros and Cons

Here is a quick round-up of all good and some less good about the Virginia State, according to reviews across the internet:

Pros:
  • Best Healthcare
  • Flourishing Economy
  • Booming Job Market
  • Growing Diversity
  • Quality Education
  • Rich History
  • Unmatchable Natural Beauty
  • Southern charm & hospitality
Cons:
  • Heavy Traffic
  • High taxes
  • Smoggy air
  • Relatively expensive housing

Virginia Payroll Facts

  • IRS levies Federal Income Tax from employee's paycheck in Virginia at the rate ranging between 0% and 37%, distributed in seven tax brackets according to income level and filing status.
  • IRS also levies FICA tax from employee's paycheck as well as employers in Virginia. The FICA tax consists of Social Security and Medicare Tax. Social Security is collected at a rate of 6.2% on the employee's first taxable income of $137,700 in a calendar year. Moreover, Medicare is levied at the rate of 1.45% on the employee's first taxable income of $200,000. Employers pay an equal amount of both taxes for each of their employees. However, if the employee's taxable earnings exceed $200,000 threshold than only employee is charged with Additional Medicare Surtax of 0.9%.
  • IRS levies FUTA taxes on employers only at the rate of 6% of the first $7,000 of each employee's taxable income for the year. Moreover, Virginia State levies State Unemployment Insurance (SUI) Tax at the rate ranges between 0.11% and 6.21%, on the taxable income of $8,000 of each employee. However, new employers are charged with lower rates ranging between 2.51% and 6.21%. Fortunately, employers paying SUI tax in Full and on time gets a FUTA tax credit up to 90%.
  • Virginia State levies State income tax from employee's paycheck according to the progressive income tax system, at the rate ranging between 2% to 5.75%, distributed in four tax brackets depending on income level, regardless of filing status. Moreover, Supplemental wages and bonuses are charged at a flat rate of 5.75%.
  • No city or county in Virginia levies Local Income Tax.
  • Virginia State follows Federal FLSA minimum wage law with a minimum wage rate of $7.25/hour for the employees, unless or otherwise exempted. Moreover, Tipped Employees can be paid a cash minimum wage rate of $2.13, with a maximum tip credit of $5.12.
  • Employees in Virginia, unless or otherwise exempted, are paid overtime according to FLSA Overtime law at one, and half of the employee's regular hourly rate for each excess hour worked after 40 hours in a workweek.
  • Non-resident employees working in Virginia but living in any reciprocal state can pay their taxes in their home state, as Virginia has a reciprocal agreement with District of Columbia, Kentucky, Maryland, Pennsylvania, and West Virginia.
  • The livable wage for a single adult living in Virginia is $14/hour, while for a couple (one working) with three children is $32.38/hour, as reported by the Massachusetts Institute of Technology.
  • The average salary for a Male employee in Virginia is $77,546, and for a female, it is $58,156, according to io.
  • The Median Household income in the Old Dominion State is $71,564 (as reported by U.S. Census Bureau).

How to Calculate Paycheck in Virginia?

As we are done with relocation to Virginia and its payroll facts, now it's time to calculate paycheck.


Step 1 - Calculating Gross Pay:

The very first step to calculating the paycheck amount is to determine Gross Pay. It is a wage that an employee earned in the last pay period.


Gross Pay is calculated differently for both hourly and salary-based employees, which is discussed in detail as follow:


Gross Pay for Hourly Employee

Hourly Employees are paid at a mutually agreed pay rate for each hour they work in a pay period. Usually, Pay periods for Hourly employees are Hourly, Daily, Weekly, and Bi-Weekly. However, the Federal, State, and Local Wage law requires the employers to set the pay rate equals to or more than the defined Minimum Wage Law for the non-exempted employees.

Hourly employees are also entitled to receive overtime, for each excess hour worked after regular hours in a workday or a workweek. Remember, like Minimum wage, the employers are also required to follow Overtime wage law provided by the federal, state, and local authorities.


Note: All the relevant laws are discussed in detail ahead.

To calculate gross wage for an hourly employee:

  1. Calculate total hours worked in a Pay Period using the data from Timesheet or Timecard.
  2. Multiply Total Hours worked with the Hourly Rate (Pay Rate).
  3. Add overtime hours (if any) worked by the employee.

Quick Tip: You can also use our Timecard with overtime Calculator to calculate Gross Wage for Hourly Employee instantly.

Gross Pay for Salaried Employee

Salaried Employees are paid at the flat amount rather than on an hourly basis. The amount is usually mutually agreed as an Annual Salary, which is then paid in Semi-monthly or Monthly Pay periods.

Salaried employees are mostly exempted from overtime law. However, their salaries must be according to Federal and State Minimum Wage law.

To calculate Gross Pay for Salaried Employees:

  • Divide the "employee's salary" by "number of pay periods." For example: If the employee's annual salary is $25000 and is paid on a semi-monthly pay period, then the employee's Gross Pay would be: $25000 / 24 = $1042.

Don't forget that Supplemental Wages like Bonuses, commissions, tips, paid leaves, fringe benefits, or other taxable wages earned by the employee must be added into the Gross wages.


Step 2 – Subtracting Pre-Tax Deductions (If Any):

Once you are done with Gross Wages, it's time to subtract any Pre-Tax deductions from the gross wage to get taxable wages as Pre-tax deductions are not taxable for federal payroll taxes.

Pre-tax deductions are offered to the employees as benefits like fringe benefits, HSA plans, etc., to reduce their taxable income, hence, increasing their take-home pay amount. Remember, not all benefits are exempted from taxes, so choose the pre-tax deductions wisely.

Some of the common pre-tax deductible benefits are:

  • FSA - Flexible Spending Accounts
  • HSA - Health Savings Accounts
  • Retirement savings accounts like a traditional 401(k)
  • Some of the Fringe Benefits
  • health insurance
  • accident insurance
  • dental and vision insurance
  • Commuter Benefits
  • Short-Term Disability

Note: Pre-Tax deduction rate, contribution limits, special tax withholding rules change from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before making any deductions.

Many Taxpayers find it hard to itemize their deductions to calculate taxable wages, for which they go for standard deductions, that varies according to the filing status, as shown in the table below:

All Filers(Updated Dec 2019)
Filing Status Standard Deduction Amount
Single Filers $12,200
Married, Filing Jointly $24,400
Married, Filing Separately $12,200
Head of Household $18,350

Step 3 – Calculate and Subtract Federal Taxes:

Once you have determined the taxable wages, it's time to deduct Federal Income taxes for the taxable wages.

IRS requires the employers to withhold federal income tax from the employee's paycheck, according to the details provided by the employee on Form W-4. The employee fills this form at the start of the job. The form includes all the necessary information, including income, number of allowances to claim, number of dependents, amount of additional taxes to deduct, and much more.

The employees are required to keep their Form W-4 up to date with all their current information, especially marriage, divorce, or child's birth.


The federal income tax is charged according to the tax brackets in which the taxpayer's income falls. The latest income tax brackets and rates are as follow:

Single Filers
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,400 10%
$19,400 - $78,950 12%
$78,950 - $168,400 22%
$168,400 - $321,450 24%
$321,450 - $408,200 32%
$408,200 - $612,350 35%
$612,350+ 37%

Married, Filing Separately
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $306,175 35%
$306,175+ 37%

Head of Household
Taxable Income Rate
$0 - $13,850 10%
$13,850 - $52,850 12%
$52,850 - $84,200 22%
$84,200 - $160,700 24%
$160,700 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Step 4 – Deduct FICA Taxes:

Besides, Federal Income Tax, the IRS also requires the employer to withhold FICA tax (15.3%) for the employee's paycheck and also requires the employer to pay an equal amount for each employee.

Federal Insurance Contributions Act (FICA) Taxes comprises of two types of taxes which are as follow:


  1. Social Security:

A total of 12.4% of social security tax is charged from which 6.2% is withheld from the employee's gross, and the employer pays the matching 6.2%. However, Social Security is only charged on the maximum taxable earnings of $137,700 for 2020.


  1. Medicare:

A total of 2.9% of Medicare is charged, from which 1.45% is withheld from the employee's gross, and the employer pays the matching 1.45%. Unlike Social Security, there is no maximum table earning limit for this tax. However, an additional surtax of 0.9% is charged as Additional Medicare Surtax on the employees having income over the specified level along with filing status, which is as follow:

Income Over Filing Status
$250,000 Married Filing Jointly
$125,000 Married Filing Separately
$200,000 Single

Note: Employers are not required to pay an equal amount for Additional Medicare Surtax.

Step 5 – Payment of FUTA Taxes

IRS requires the employer to pay another tax, known as The Federal Unemployment Tax Act (FUTA) Tax. This tax is paid at the rate of 6% on the first $7000 earned by each employee in a year. However, the IRS doesn't require the employees to contribute to it.

The employers who pay State Unemployment Insurance (SUI) tax in full and on time are given relieving FUTA tax credit of up to 5.4%, which saves a whopping 90% from FUTA Tax.


Step 6 – Subtract Post-Tax Deductions (If any):

Post-tax deductions (after-tax deductions) is an amount the employer takes out from the employee's paycheck after taxes. Therefore, it does not affect taxable wages and the amount of tax payable.

Here are some of the types of post-tax deductions that employee may voluntarily choose:

  • Charitable contributions
  • Disability insurance
  • Garnishments
  • Specific Retirement Plans like Roth 401(k)
  • Life Insurance

Step 7 – Withhold State Payroll Taxes:

As you are done with Federal Payroll Taxes, now it's time to discuss State Payroll Taxes. The Virginia State charges State Income Tax on employees, and State Unemployment Insurance (SUI) Tax on the employers.


Virginia State Income Tax

Virginia State levies State income tax from employee's paycheck according to the progressive income tax system, at the rate ranging between 2% to 5.75%, distributed in four tax brackets depending on income level, regardless of filing status. Moreover, Supplemental wages and bonuses are charged at a flat rate of 5.75%.

The employer withholds this tax from the employee's paycheck according to the details provided by the employee in the Form VA-4. This form is filled by the employee while joining the job. Employees are required to keep the form updated with any significant life events like marriage, child's birth, and divorce.

All Filers
Virginia Taxable Income Rate
$0 - $3,000 2.00%
$3,000 - $5,000 3.00%
$5,000 - $17,000 5.00%
$17,000+ 5.75%

State Unemployment Insurance (SUI) Tax

The State Unemployment Insurance (SUI) Tax is an employer-funded program that provides temporary income to unemployed workers who have lost their job without fault of their own.

The state doesn't charge in Virginia State Disability Insurance (SDI) tax on employers. However, it does require the employers to pay Virginia State Unemployment Insurance (SUI) tax, at the rate ranging from 0.11% to 6.21% on a first $8,000 earned in wages by each employee in a year. However, new employers are given relief as they have to pay at lower rates ranging from 2.51% to 6.21%. Moreover, foreign contractors doing business in Virginia have to pay a flat rate of 6.21%.


Note: SUI Rates for Virginia Employers change with time. Therefore, you are required to keep a check on notices to make sure you have paid the right amount.

Step 8 – Withhold Local Payroll Taxes:

No city or county in Virginia levies Local Income Tax


Step 9 – Calculate Pay Check:

Now that you are done with all payroll taxes and calculated the net take-home pay of an employee, it's time to cut the paycheck. Moreover, you, as an employer, must pay your portion of FICA tax along with FUTA and SUI tax in full and on time regularly.


Federal and Virginia Payroll Laws

  • The Virginia State law requires employers to pay at least every two weeks (bi-weekly) or twice a month (semi-monthly) to their employees and maintain regular paydays. However, the following employees can be paid every month:
    • Salaried Employees
    • Students enrolled in a work-study program or its equivalent
    • Employees whose weekly wages exceed 150% of the average weekly rate of the state
  • The Virginia State requires the employers to pay at least the Federal Minimum wage rate of $7.25 per hour to their employees, unless or otherwise exempted. Moreover, non-exempted employees are also required to receive overtime for each excess hour worked after 40 hours in a workweek on at least the rate of one and half of employee regular hourly rate. Employees exempted from minimum wage, and overtime law includes:
    • Tipped Employee: They can be paid at least the cash minimum wage rate of $2.13/hour, with a maximum tip credit of $5.12/hour.
    • All employees who are exempted under FLSA law.
  • The state requires the employers to provide at least 30 minutes of a lunch break to minor employees (of age 14 and 15) who are scheduled to work for five or more continuous hours. However, employees age 16 and above are exempted from this law. Moreover, if employers voluntarily provide the lunch break, then it must be PAID, if for twenty or more minutes, and it must be UNPAID if for 30 minutes or more.
  • Employers of Virginia are not entitled by the state law to provide either paid or unpaid vacation benefits, sick leave benefits, holiday leave, jury duty leaves, voting leave, and bereavement leave.

FAQs

Answer: These are the taxes and their rates taken out of employee's paycheck in Virginia:

  • Federal Income Tax: The employer withholds this tax at the rate ranging from 10% to 37%, distributed in seven tax brackets depending on filing status and income level.
  • FICA Tax: This tax consist of Social Security Tax and Medicare Tax. Social Security Tax is charged at the rate of 6.2% on the first taxable earnings of $137,700 for 2020. Whereas, the Medicare tax is charged at the rate of 1.45%, on the first taxable wages up to $200,000. However, if the annual earning of an employee exceeds $200,000 (Single Filer), then an additional Medicare Surtax of 0.9% is charged.
  • Virginia State Income Tax: The employer withholds this tax at the rate ranging between 2% to 5.75%, distributed in four tax brackets depending on income level, regardless of filing status. Moreover, Supplemental wages and bonuses are charged at a flat rate of 5.75%.

Answer: Federal Income tax in Virginia is charged according to a progressive tax system, having following tax brackets and rates:

For "Single" and "Married, filing separately" filers:

  • 10% on taxable income between $0 and $9,700
  • 12% on taxable income between $9,701 and $39,475
  • 22% on taxable income between $39,476 and $84,200
  • 24% on taxable income between $84,201 and $160,725
  • 32% on taxable income between $160,726 and $204,100
  • 35% on taxable income between $204,101 and $510,300
  • 37% on taxable income over $510,301

For "Head of Household" and "Married, filing jointly" filers:

  • 10% on taxable income between $0 and $19,400
  • 12% on taxable income between $19,400 and $78,950
  • 22% on taxable income between $78,950 and $168,400
  • 24% on taxable income between $168,400 and $321,450
  • 32% on taxable income between $321,450 and $408,200
  • 35% on taxable income between $408,200 and $612,350
  • 37% on taxable income over $612,350

Answer: Virginia State withholds state income tax from employee's paycheck at a progressive system, with rates and tax brackets as follow:

  • 2% on taxable income between $0 and $3,000
  • 3% on taxable income between $3,000 and $5,000
  • 5% on taxable income between $5,000 and $17,000
  • 75% on taxable income over $17,000
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