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REMOTE EMPLOYEES

Hiring a remote employee in Virginia

Your company is in another state and one employee lives and works from home in Virginia. Which state's taxes apply, unemployment, paid leave and Virginia's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated June 7, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Virginia at a glance

Income tax
Virginia withholding
Reciprocity
With Arizona, District of Columbia, Kentucky, Maryland, Pennsylvania and West Virginia
Unemployment
Not confirmed
Paid leave
Virginia Paid Family and Medical Leave Insurance Program
New hire report
Within 20 days

Which state's taxes apply

Work state
Virginia taxes wages for work done in Virginia. Withhold Virginia income tax on the employee's wages.Source: Virginia Tax, Withholding Tax (opens in a new tab), checked October 5, 2026
Withholding form
Form VA-4Source: Virginia Tax, Form VA-4, Employee's Virginia Income Tax Withholding Exemption Certificate (Rev. 04/26, PDF) (opens in a new tab), checked October 5, 2026
Reciprocity
If your office is in Arizona: Virginia residents working there are withheld for Virginia, with Form WEC. If your office is in the District of Columbia: Virginia residents working there are withheld for Virginia, with District of Columbia's exemption certificate. If your office is in Kentucky: only Virginia residents who commute there daily are withheld for Virginia, with Form K-4 (box 4) or 42A809; an employee who works from home and comes in on some days is withheld for Kentucky on those days. If your office is in Maryland: Virginia residents working there are withheld for Virginia, with Form MW507, line 4. If your office is in Pennsylvania: Virginia residents working there are withheld for Virginia, with REV-419, Employee's Nonwithholding Application Certificate. If your office is in West Virginia: Virginia residents working there are withheld for Virginia, with WV/IT-104NR.Source: Arizona Department of Revenue, 2026 Form WEC Employee Withholding Exemption Certificate instructions (PDF) (opens in a new tab), checked October 5, 2026; Virginia Tax, Form VA-4, Employee's Virginia Income Tax Withholding Exemption Certificate (Rev. 04/26, PDF) (opens in a new tab), checked October 5, 2026; Kentucky Department of Revenue, Form K-4 Kentucky's Withholding Certificate 2026, 42A804(12-2025) (PDF) (opens in a new tab), checked October 5, 2026; Comptroller of Maryland, Form MW507, Employee's Maryland Withholding Exemption Certificate (2026, PDF) (opens in a new tab), checked October 5, 2026; PA Department of Revenue, PA Personal Income Tax Guide: Gross Compensation (opens in a new tab), checked October 5, 2026; West Virginia Tax Division, WV IT-104 Employee's Withholding Exemption Certificate and WV/IT-104NR Certificate of Nonresidence (Rev. 03/2023, PDF) (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware or New York, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Virginia for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Virginia
Virginia sets no day count before a nonresident's wages for work there are withheld.Source: Virginia Tax, Income Tax Withholding Guide for Employers (Rev. 05/25, PDF) (opens in a new tab), read from an archived copy dated June 7, 2026 (opens in a new tab)

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Virginia: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Virginia: the employee works from home there, so the work is localized in Virginia.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Virginia, so the work is localized in Virginia: pay Virginia unemployment tax, not your company state's.

Agency
Virginia Employment Commission (VEC)Source: Virginia Employment Commission, Employers (Employer Home) (opens in a new tab), checked October 5, 2026
Wage base
$8,000 Fixed by lawSource: Code of Virginia 60.2-229, Wages (opens in a new tab), checked October 5, 2026
New employer rate
Not confirmedSource: Code of Virginia 60.2-526, General provisions (tax rate computation) (opens in a new tab), checked October 5, 2026

Open the account: Virginia payroll tax registration

Virginia Paid Family and Medical Leave Insurance Program (opens in a new tab)

Status
Contributions start April 1, 2028Source: Code of Virginia 60.2-806, Contributions (opens in a new tab), checked October 5, 2026
Total rate
Not yet setSource: Code of Virginia 60.2-806, Contributions (opens in a new tab), checked October 5, 2026
Employee share
Not yet setSource: Code of Virginia 60.2-806, Contributions (opens in a new tab), checked October 5, 2026
Employer share
Not yet setSource: Code of Virginia 60.2-806, Contributions (opens in a new tab), checked October 5, 2026
Small employers
10 or fewer employees: no employer shareSource: Code of Virginia 60.2-806, Contributions (opens in a new tab), checked October 5, 2026

Register before the first payroll: the steps are on Virginia payroll tax registration.

Virginia employer rules

Employment law applies where the employee works, so these follow the employee into Virginia.

Final pay
Fired: By the next regular payday Quit: By the next regular paydaySource: Code of Virginia 40.1-29, Time and medium of payment; written statement of earnings (opens in a new tab), checked October 5, 2026
Pay frequency
Salaried employees at least monthly; hourly employees at least every two weeks or twice a month (monthly by agreement for employees earning over 150% of the state average weekly wage)Source: Code of Virginia 40.1-29, Time and medium of payment; written statement of earnings (opens in a new tab), checked October 5, 2026
Pay notice
No written pay notice at hire. Employers must set regular pay periods and rates of pay, and on each regular payday give a paystub or online statement showing employer name and address, hours worked (hourly and lower-salaried staff), rate of pay, gross wages and each deduction, kept 3 years. Job postings must state the pay or pay range (40.1-28.7:12).Source: Code of Virginia 40.1-29, Time and medium of payment; written statement of earnings (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the date of hire.Source: Code of Virginia 63.2-1946, Virginia New Hire Reporting Center (opens in a new tab), checked October 5, 2026
E-Verify
Employers with more than 50 employees (12-month average) on a state agency contract over $50,000 must use E-Verify for new hires working on that contract. State agencies use E-Verify for every new hire who will work in Virginia. No mandate for other private employers.Source: Code of Virginia 2.2-4308.2, Registration and use of federal employment eligibility verification program required (opens in a new tab), checked October 5, 2026
Sick leave
No state sick leave law.Source: Code of Virginia 40.1-33.3, Definitions (paid sick leave) (opens in a new tab), checked October 5, 2026

Not confirmed: no official source settled it on the check date, so none is shown.

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Virginia, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Virginia

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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