Question 1

Is PEO registration required in Virginia?

Accepted Answer

Yes. A PEO must register with the Virginia Workers' Compensation Commission before providing professional employer services in Virginia (Va. Code §65.2-803.1). The application requires a Virginia-based representative for service of process and certification that the PEO and each client company are insured.

Question 2

What bonding requirements apply to Virginia PEOs?

Accepted Answer

Virginia has no fixed bond amount in statute or regulation. Instead, the Workers' Compensation Commission may require a parent or commonly owned entity to guarantee the PEO's obligations. Funding comes through an annual payroll-based assessment under 16 VAC 30-100-70.

Question 3

What is the SUI taxable wage base in Virginia?

Accepted Answer

The SUI taxable wage base in Virginia is $8,000 per employee per year, which is the lowest in the mid-Atlantic region. New employers pay an initial base tax rate of 2.5% plus add-ons until they earn an experience rating.

Question 4

Does Virginia have a paid family and medical leave program?

Accepted Answer

Yes. Virginia enacted a statewide Paid Family and Medical Leave (PFML) program in April 2026. The program will pay up to 12 weeks of job-protected leave at 80% of a worker's average weekly wage. Payroll contributions begin April 1, 2028, and benefits become available December 1, 2028.

Question 5

What are the employer obligations under Virginia's PFML?

Accepted Answer

Employers with 10 or fewer employees are exempt from the employer share of PFML contributions but must still withhold and remit the employee portion. Larger employers pay the full premium and may deduct up to 50% of it from employee wages.

Question 6

What is the minimum wage in Virginia?

Accepted Answer

The Virginia minimum wage for 2026 is $12.41 per hour, effective January 1.

Virginia PEO FAQs: Registration, Low Wage Base, and New PFML Program

Frequently Asked Questions