Nanny Taxes & Payroll in Virginia

Minimum Wage

Household employees must be paid at least the highest applicable federal, state, or local minimum wage rate. Virginia’s minimum wage rate of $12.77/hour applies.

Overtime Pay Rules

Household employees in Virginia must be paid at least time-and-a-half for hours worked over 40 in a seven-day workweek. Overtime compensation is not required for live-in employees or when work is performed on a holiday.

State Unemployment Tax & Rate

In Virginia, the new employer SUI (state unemployment insurance) rate is 2.50 percent on the first $8,000 of each employee’s wages. Employers with previous employees may be subject to a different rate. This is an employer-only tax.

Workers’ Compensation Insurance

Household employers in Virginia are not required to have workers’ compensation coverage if they have fewer than three employees. However, you can choose a voluntary policy to protect both you and your employees. Get a quote on workers’ compensation insurance.

Disability Benefits Insurance

Virginia does not have disability benefits insurance requirements related to household employment.

Domestic Workers’ Bill of Rights

Virginia’s Domestic Worker Bill of Rights provides domestic workers with workplace protections including:

• Unlawful employment practice to fail or refuse to hire, discharge, or discriminate against any individual for the following reasons: compensation, race, color, religion, sex, sexual orientation, gender identity, marital status, pregnancy, childbirth, or related medical conditions, age, veteran status, or national origin.
• Salaried employees are to be paid at least once a month; hourly workers are to be paid at least every two weeks or twice each month.

Employee protection laws have also been extended to include domestic workers like nannies, senior caregivers, housekeepers, and estate staff. They are now allowed to file complaints regarding workplace safety, which will be investigated by the state’s Commission of Labor and Industry.

Paid Leave Laws

Paid Family and Medical Leave​

Virginia’s paid family and medical leave insurance program (PFML) will provide up to 12 weeks of partially compensated, job-protected leave. Contributions to fund the program start April 1, 2028, and benefits begin December 1, 2028.

The program applies to employers that have paid wages of at least $1,500 in any quarter of the current or preceding year, or who have employed at least one person for part of a day in each of 20 weeks during that time. Employees are eligible for PFML if they meet the income eligibility requirements for the state’s unemployment insurance program.

Eligible employees can take leave for the following reasons:

• Child bonding (during the first year after the child’s birth, adoption, or placement);
• Their employee’s own or a family member’s serious health condition;
• Care for a military service member who is a family member;
• Military exigency (family deployment leave); and
• Safety leave (only four weeks permitted annually of leave necessitated by domestic violence against or harassment, sexual assault, or stalking of the employee or a family member).

Workers on PFML receive 80% of their average weekly wage, subject to state caps. The weekly maximum benefit is adjusted yearly.

The program is funded by contributions split equally between workers and employers with more than 10 employees.

Household employers are likely exempt from the employer contribution (provided they have 10 or fewer workers) but must still withhold and remit their employees’ contributions to the state.

Paid Sick Leave​

Household employees are also eligible for paid sick leave. They can accrue one hour of leave for every 30 hours worked and take up to 40 hours of paid leave a year.

Paid sick leave is being phased in beginning in 2027. For employers with 24 or fewer workers, the effective date is January 1, 2029.

Qualifying reasons for paid leave include standard medical needs for the employee or an employee’s family member. Victims of domestic abuse, sexual assault, or stalking can use paid sick leave to relocate, obtain medical care or counseling, seek legal advice, or utilize other victim aid services. This “dafe leave” can also be used if the employee’s family member is a victim.

Family member is defined broadly and includes “individuals related by blood or affinity whose close association with an employee is the equivalent of a family relationship”

Other State Regulations

Final Pay

Terminated household employees are entitled to payment of their wages on or before the next regular payday.

Helpful Links for Nanny Taxes in Virginia

• Virginia Department of Labor
• Virginia Office of Finance

Federal Regulations

All household employers need to follow certain federal regulations, including:

Fair Labor Standards Act (FLSA) Classification Guidelines

• Household workers are considered employees and not independent contractors. Learn more about misclassifying employees as independent contractors.
• Household workers are also non-exempt employees, meaning they receive at least time-and-a-half for hours worked over 40 per workweek. Learn more about overtime pay.

FICA Taxes

Social Security and Medicare taxes are commonly referred to as FICA taxes.

If you pay cash wages of $3,000 or more to any household employee in 2026 (or paid a domestic worker $2,800 or more in 2025), you must withhold and pay FICA taxes. FICA taxes are 15.3 percent of cash wages.

As an employer, you pay 7.65 percent (6.2 percent for Social Security and 1.45 percent for Medicare).

Your employee's share is also 7.65 percent, which you may withhold from their wages or pay yourself.

You don't withhold or owe FICA taxes on wages you pay to your spouse, child under the age of 21, parent, or any employee under 18 at any time during the calendar year.

Federal Unemployment Tax (FUTA)

If you pay a household employee total cash wages of $1,000 or more in any calendar quarter, you'll owe federal unemployment tax. This is an employer-only tax. FUTA is 6% of cash wages on the first $7,000 of wages paid to an employee.

Mileage Reimbursement

If your employee uses their own car in the course of their work, you can reimburse them for mileage. For 2026, the IRS has set the optional standard mileage rate at 72.5 cents per mile driven. Paying mileage is not mandatory in most states, and you can reimburse your employee at a different rate. However, if mileage costs cause your employee to fall below the minimum wage, you must reimburse them for mileage.

Remitting Taxes Quarterly

Household employers can remit taxes, including FICA, employee income, and federal unemployment, quarterly using Form 1040-ES. If a household employer does not remit their taxes quarterly, the entire amount will be due when they file their personal tax return. This could cause an underpayment penalty.

Year-End Requirements

By January 31, household employers must provide Form W-2 to their employees and submit Form W-3 and Copy A of Form W-2 to the Social Security Administration. Then, a household employer must file Schedule H with their personal tax return. Learn more: How to File Schedule H