As we pass the halfway point of 2025, it’s the perfect time for Virginia employers to double-check key payroll compliance requirements. Here’s what matters most right now and what lies just ahead.
Minimum Wage Is Now $12.41/hour
Effective January 1, 2025, Virginia’s minimum wage increased to $12.41 per hour, reflecting an inflation-based adjustment.
Planning ahead? The wage is set to rise again to $12.77 per hour, effective January 1, 2026.
Withholding: Updates as of July 2025
New Virginia state income tax withholding tables take effect for wages paid after July 1, 2025.
Be sure to update your payroll system now to ensure accurate employee withholding and avoid errors in net pay.
Organ & Bone Marrow Donation Leave
Employers with 50 or more employees must still provide:
- Up to 60 business days of unpaid organ donation leave
- Up to 30 business days of unpaid bone marrow donation leave
…within a 12-month period, and this leave cannot run concurrently with FMLA.
Critical Payroll & HR Reminders
- Minimum Wage Audit: Ensure that all hourly employees, including tipped and part-time workers, are paid at least $12.41/hour. Virginia does not allow a lower tipped wage.
- Tax Reporting: Stay current with quarterly VA‑5 filings and maintain payroll records for at least three years.
- New‑Hire Reporting: Report all new hires and rehires to the Virginia New-Hire Registry within 20 days of their start date.
- Posters & Remote Work: Keep labor law posters updated and visible or accessible digitally for remote team members. Electronic posting requirements for remote workers are not explicitly mandated under Virginia law but are recommended to support compliance under federal and best practice standards.
Why Mid‑Year Check‑Ins Matter
Payroll compliance isn’t a set-it-and-forget-it task. Mid‑2025 updates including wage adjustments and tax table changes make now an ideal time to audit your systems and stay ahead. Need help navigating these updates or ensuring your payroll is accurate and compliant? Journey Payroll & HR has your back.