Employee Cost: Pennsylvania vs Virginia (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Virginia saves $367/employee/year

$65,652 in Pennsylvania vs $65,285 in Virginia

Pennsylvania

$65,652

1.09x salary

Virginia

$65,285

1.09x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component PA VA Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $234 $125 +$109
Workers' Compensation $786 $528 +$258
Total Employer Cost $65,652 $65,285 +$367

Tax Rate Comparison

Rate Pennsylvania Virginia
SUTA Rate Range 0.69% – 9.07% 0.17% – 6.5%
SUTA Typical Rate 2.34% 1.56%
SUTA Wage Base $10,000 $8,000
Workers' Comp Rate 1.31% 0.88%
State Income Tax Yes Yes

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Virginia over Pennsylvania saves $367 per employee per year in employer-side payroll costs alone. For a team of 10, that's $3,672 annually.

The biggest difference comes from workers' compensation rates — Pennsylvania charges 1.31% vs Virginia's 0.88%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary PA Total VA Total Difference
$30,000 $32,964 $32,726 +$238
$40,000 $43,860 $43,579 +$281
$50,000 $54,756 $54,432 +$324
$60,000 $65,652 $65,285 +$367
$75,000 $81,996 $81,564 +$432
$100,000 $109,236 $108,697 +$539
$125,000 $136,476 $135,829 +$647
$150,000 $163,716 $162,962 +$754

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of PA.

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