Finding Virginia nanny tax information is not always easy. That’s why we created this comprehensive overview detailing everything you need to know about being a household employer in Virginia. Check out the information below that HomePay is here to help with.
Checklist for Virginia household employers
We know you’re busy! Here’s a quick “to-do” list with links to extra details below.
Beginning of employment
- Obtain workers’ compensation insurance.
- Display employment posters.
During employment
- Pay at least Virginia minimum wage.
- Pay overtime, when it applies.
Optional benefits for your employee
Ending employment
- Manage unused paid time off.
Beginning of employment
Workers’ compensation
Household employers in Virginia are not required to carry a workers’ compensation insurance, however we advise all families to do so. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com.
Employment posters
Families in Virginia are required to notify their employee of their rights by sharing these posters.
During employment
Minimum wage rate
The current minimum wage in Virginia is $11.00/hour.
Virginia overtime requirements
- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.
- Live-in employees are not required to be paid overtime.
- Overtime is not required to be paid when work is performed on a holiday.
Optional benefits for your employee
Health insurance
Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.
Families with 2 or more employees have 3 options:
- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).
- Purchase a policy through SHOP (Small Business Health Options Program).
Visit our health insurance page for more information about these options.
Mileage reimbursements
The current federal mileage reimbursement rate is 58.5 cents per mile and only covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.
Ending employment
Managing unused PTO
Virginia household employers do not need to pay their employees for unused sick and/or vacation time.
The information contained in this article is general in nature, may not be applicable to your specific circumstances, and is not intended to be a substitute for or relied upon as personalized tax or legal advice.