Easily manage employment in West Virginia

Payroll management in West Virginia

West Virginia has a diverse economy supported by industries such as energy, manufacturing, healthcare, and tourism. With state-specific payroll regulations, including a minimum wage higher than the federal rate, a progressive state income tax, and unemployment insurance requirements, employers in West Virginia must ensure compliance with both state and federal payroll laws. Understanding these regulations is crucial for smooth payroll operations and compliance.

Payroll breakdown in West Virginia

Employers in West Virginia must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:

Minimum wage and overtime

• Minimum wage: West Virginia’s minimum wage is $8.75 per hour, which is higher than the federal minimum wage.
• The state minimum wage applies to businesses with six or more employees.
• Smaller businesses may follow the federal minimum wage of $7.25 per hour.
• Overtime rules:
• West Virginia follows federal overtime laws, requiring employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 hours in a workweek.
• Some exemptions apply based on job classification and industry.

State income tax

• West Virginia has a progressive state income tax system, with rates ranging from 2.36% to 5.12%, depending on income levels.
• Employers must withhold state income tax and remit it to the West Virginia State Tax Department.

Unemployment insurance (UI) tax

• Employers must contribute to West Virginia’s Unemployment Insurance (UI) program, managed by the West Virginia Division of Workforce Development.
• The UI wage base in West Virginia is $9,500.
• UI tax rates vary based on an employer’s experience rating and range from 1.5% to 8.5%.
• New employers typically pay a 2.7% UI tax rate.

Workers’ compensation

• West Virginia law requires all employers with one or more employees to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
• Employers must obtain coverage through a private insurer or the state-approved workers' compensation fund.

Payroll tax filing and payment deadlines

• Employers must register for a West Virginia Withholding Tax Account with the West Virginia State Tax Department.
• State withholding tax returns must be filed monthly, quarterly, or annually, depending on employer classification.
• UI tax reports must be submitted quarterly to the West Virginia Division of Workforce Development.
• Payroll tax payments can be made electronically through the West Virginia MyTaxes online portal.

Quick facts: Important considerations for employers

• State minimum wage compliance: West Virginia’s minimum wage is higher than the federal rate, but smaller businesses may follow federal minimum wage laws.
• Final paycheck rules:
• If an employee is terminated, employers must provide the final paycheck by the next scheduled payday.
• If an employee resigns, the final paycheck must be provided by the next scheduled payday.
• New hire reporting: Employers must report new hires to the West Virginia New Hire Reporting Center within 14 days.
• Paid sick leave: West Virginia does not require employers to provide paid sick leave, but employers may choose to offer it as a benefit.
• Payroll recordkeeping: Employers must maintain payroll records for at least five years to comply with state and federal laws.
• Right-to-work state: West Virginia is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Run payroll in West Virginia with Remote

Managing payroll in West Virginia requires careful attention to state-specific regulations, including minimum wage compliance, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be, book a demo with Remote today.