Overview

Capital
Richmond
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy

Taxes

Employer
6.20% - Social Security Tax
1.45% - Medicare
Up To 3.3% - State Taxes
Employee

Minimum Wage

General

Minimum wage is $7.25 per hour.

VAT

General

The state sales tax is 5.3% with the exception of Norther Virginia and Hampton Roads for which is 6%.

Mandatory Benefits

Pension Fund

Employer: contributes 4% of the total payroll per month for the employees pension funds.
Employee: contributes 5% of the monthly salary to pension fund

Social Security

In the US, both the employer and employee contribute 6.20% for social security. 

Health Insurance

Both the employer and employee contribute 1.45% to Medicare. 

Termination

Termination Process

Virginia follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason. Therefore at the time of termination, the employer must pay all the necessary wages up to the day of termination.

Advance Notice

There is no official notice period, but general practice is 2 weeks.

Severance Pay

Virginia law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.