If you are an employer in Virginia who has recently hired an employee, you will need to register for payroll taxes with the Virginia Department of Taxation. This registration process ensures that you are in compliance with state tax laws and can properly withhold and remit taxes on behalf of your employees.
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Automatically register for payroll tax accounts. Mosey monitors your workforce in real-time and handles the process end-to-end.
There
are 2 payroll tax setup tasks
you may need to complete in Virginia to get your new
hire on payroll for the first time. You can follow the guide below
to help you get registered directly with the
Virginia agencies or use Mosey to do it.
Virginia Unemployment Insurance Setup for
PLLC, Professional Corporation, LLP, LLC, Corporation
You must register with the Virginia Employment Commission for Unemployment Insurance tax. You are generally required to pay Unemployment Insurance tax if you have at least $1,500 in quarterly payroll or have had an employee for at least 20 weeks in a calendar year. When registering for Unemployment Insurance tax you will also be able to register for Employer Withholding Tax at the same time.
Register for an Unemployment Insurance Tax Account
Register online for an Unemployment Insurance account online with the Virginia Employment Commission by logging into VATAX Online Services for Businesses portal.
Nonprofits who would like to opt for the reimbursable payment method must mail a written election with to the Virginia Employment Commission, no later than 30 days prior to the beginning of any taxable year.
Virginia Withholding Tax Setup for
PLLC, Professional Corporation, LLP, LLC, Corporation
Employers with employees in Virginia are required to register with Virginia Tax for an Employer Withholding Tax account. Generally, you are required to withhold state Personal Income Tax if you pay wages to at least one employee. When registering for Employer Withholding Tax you will also be able to register for Unemployment Insurance tax at the same time.
Register for an Employer Withholding Tax Account
Register online for an Employer Withholding Tax account with VATAX by logging into VATAX Online Services for Businesses portal.
Tax nexus refers to the connection between a business and a taxing jurisdiction that triggers compliance obligations. In California, nexus determines whether your company must register, file, and pay taxes in the state. Understanding California nexus is critical for any employer expanding operations, hiring remote workers, or selling to customers in the Golden State.
California uses multiple tests to establish nexus—and each type operates independently. You might owe sales tax without owing income tax, or trigger employment obligations without hitting sales thresholds. This California sales tax guide walks you through the different nexus types, current thresholds, and what each means for your business.
Sometimes buying company vehicles or delivery vans isn’t a feasible move. If you need your employees to do some driving on behalf of your business, reimbursing them for their mileage can be a more economical solution. The IRS agrees, and they create annual rules for maximum reimbursement that employers or self-employed individuals can deduct from their taxes.
A mileage reimbursement policy can keep things simple, and you may be able to deduct a portion of your reimbursement from your business taxes. You may have a few important questions. Does mileage reimbursement include gas? Is there an upper limit for paying mileage to employees? Here’s how IRS rules impact mileage rate and reimbursement for your employees and what it means for your taxes.
Operating a startup is complex. Founders and leadership teams juggle competing priorities, from seeking funding to managing the team to attending to an array of human resources, accounting, and administrative tasks.
Operating a business that employs workers in multiple states is even more complicated: If your business is incorporated in Delaware and you want to hire remote employees in Maine, Nevada, and Arizona, the HR, accounting, and admin tasks quadruple. You’ll need to register with relevant agencies in each state and fulfill state-specific payroll and insurance requirements.
Paul Boynton |Mar 21, 2025
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