Hiring Employees in West Virginia

how to legally hire And Pay Employees in West Virginia

Learn how to hire employees in West Virginia step by step, from registering as an employer to handling payroll, taxes, benefits, and termination according to state law.

Famous Photo Of West Virginia Landmark
Iconic Image Of West Virginia

Capital City

Charleston

Timezone

EST

(

GMT-5

)

Paid Leave

Sick & Voting Leave

Income Tax

3% - 6.5%

Employer Tax

1.5% - 8.5%

Hiring in West Virginia requires a clear understanding of local labor laws, registration steps, payroll rules, and employer tax obligations – and getting compliance right from the start protects your business from costly penalties and operational delays.

This guide walks you through everything you need to hire confidently in West Virginia – from setting up as an employer to managing payroll, benefits, and state-specific employment regulations. It’s designed for companies of all sizes looking to build or expand their team in West Virginia while staying fully compliant at every step.

West Virginia Employment Facts At A Glance

Labor LawsWest Virginia Regulations
Minimum Wage8.75 dollars per hour, most employers
Pay Frequency2 times per month minimum, regular schedule required
Overtime Rules40 hours per week threshold, 1.5 times rate
Workers’ Compensation3 or more employees generally must be covered
Required State Tax ID1 withholding account, 1 unemployment account

Hiring And Onboarding Employees In West Virginia

Learn how to hire employees in West Virginia step by step, from registering as an employer to handling payroll, taxes, benefits, and termination according to state law.

4 Ways To Hire Employees In West Virginia

Hiring in West Virginia for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in West Virginia:

  • Establishing a local entity: Creating a legal entity in West Virginia allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with West Virginia’s labor laws, helping you hire in West Virginia without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet West Virginia’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but West Virginia has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in West Virginia.

Complying with West Virginia specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in West Virginia, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Classifying Your Workers Correctly

Your company must decide whether each worker in West Virginia is an employee or an independent contractor using federal IRS guidance and state rules. The IRS focuses on behavioral control, financial control, and the overall relationship, while West Virginia agencies follow similar factors when reviewing unemployment and workers’ compensation coverage. You should document why you classified a worker a certain way and align contracts, supervision, and pay practices with that status.

Misclassification in West Virginia can trigger back wages, unpaid overtime, retroactive unemployment and workers’ compensation premiums, tax penalties, and potential civil fines. State or federal audits may also require you to reclassify workers going forward and adjust your payroll tax filings. To reduce risk, you can review the IRS guidance and resources such as https://www.playroll.com/blog/employee-misclassification-guide and periodically audit your classifications.

Verify Employee Work Eligibility

When you hire in West Virginia, you must complete federal Form I-9 for every employee to confirm identity and authorization to work in the United States. You must physically examine original documents from the I-9 Lists of Acceptable Documents within 3 business days of the employee’s start date and avoid requesting more or different documents than the form allows. Completed I-9s must be retained for at least 3 years after the hire date or 1 year after termination, whichever is later.

West Virginia does not currently mandate E-Verify for all private employers, but you may choose to use the federal E-Verify system voluntarily or if required under a specific government contract. If you enroll, you must follow E-Verify timelines and procedures consistently for all covered new hires. Keep your I-9 and E-Verify records separate from general personnel files to simplify audits and protect privacy.

Create an Employee Onboarding Process

Your onboarding process in West Virginia should include a written offer letter outlining pay rate, pay schedule, exempt or nonexempt status, and key benefits. You will need to collect federal Form W-4, West Virginia Form WV/IT-104 for state withholding, direct deposit authorization if used, and signed acknowledgments for your handbook, at-will employment statement, and key policies. You should also provide any required notices, such as workers’ compensation information and unemployment insurance rights.

Build a checklist so every new West Virginia hire receives consistent training on timekeeping, overtime approval, anti-harassment rules, and safety procedures. Clear documentation at the start helps you avoid disputes over hours, pay, and expectations later. If you use Playroll, you can see total hiring costs in West Virginia upfront so you budget accurately before extending an offer.

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How To Do Payroll in West Virginia: Methods & Frequency

When you run payroll in West Virginia your company needs to follow specific rules on how employees can be paid and how often those payments must occur. Understanding these requirements helps you avoid compliance issues and keep your team paid accurately and on time. Below, you’ll find the essential guidelines to make payroll simpler and fully compliant for your business.

Pay Frequency & Methods

West Virginia law generally requires you to pay employees at least twice per month, with no more than 19 days between paydays, unless you qualify for and follow rules for less frequent payments. You must pay wages no later than 6 days after the end of the pay period for regular pay, and final wages are typically due by the next regular payday or within 72 hours in some discharge situations, depending on circumstances. Failure to pay on time can expose your company to claims for unpaid wages, liquidated damages, and attorneys’ fees.

Payment Methods (How You Can Pay)

Your company can choose from several lawful payment methods in West Virginia, but you must always ensure employees receive full wages on time and get an accurate wage statement each pay period.

  • Payroll Check: You may pay employees by check drawn on a bank that allows them to cash it at full face value without fees or unreasonable delay.
  • Cash: You can pay in cash as long as you keep accurate payroll records and provide a written statement of hours, rates, and deductions each pay period.
  • Direct Deposit (EFT): You may use direct deposit if you obtain the employee’s voluntary written consent and allow them to choose a financial institution.
  • Paycards: You can use payroll cards only if employees can access their full wages at least once per pay period without fees and receive clear disclosures of any card terms.
  • Outsourced Payroll: You may outsource payroll to a third-party provider, but your company remains legally responsible for timely, accurate wage payments and tax remittances.

Types of Payroll Taxes in West Virginia & Tax Contributions

When you hire employees in West Virginia, your company must withhold and remit federal and state payroll taxes and pay several employer-only contributions. You will need to register with both the West Virginia State Tax Department and WorkForce West Virginia before running payroll, and then file returns and payments on the schedules assigned to you.

Employer Tax Contributions

As a West Virginia employer, you are responsible for federal Social Security and Medicare contributions, federal unemployment tax, state unemployment insurance, and any required local taxes. You must open a West Virginia withholding tax account and a WorkForce West Virginia unemployment account, then report wages and remit contributions electronically when required.

TaxWest Virginia AgencyApproximate Rate / Wage BaseKey Notes
Social Security (Employer Share)IRS6.2% up to federal wage baseYou match the employee’s 6.2% contribution on covered wages.
Medicare (Employer Share)IRS1.45% on all wagesNo wage cap; additional 0.9% Medicare tax is employee-only on high earners.
Federal Unemployment (FUTA)IRS0.6% effective on first $7,000 (with full credit)Standard 6.0% rate with up to 5.4% credit for timely state UI payments.
West Virginia Unemployment Insurance (SUTA)WorkForce West VirginiaVariable rate on wages up to a state-set wage baseNew employers pay a standard rate; rates then adjust based on experience.
Workers’ Compensation PremiumsPrivate carriers, regulated by West Virginia Offices of the Insurance CommissionerVaries by industry classification and payrollMost employers with 3 or more employees must maintain coverage through an approved insurer.

Employee Payroll Tax Contributions

Your company must withhold federal income tax, Social Security, Medicare, and West Virginia personal income tax from employee wages. You are responsible for calculating withholdings correctly, depositing them on time, and providing employees with Form W-2 after year-end.

TaxWithheld From Employee?AgencyKey Notes
Federal Income TaxYesIRSWithhold based on Form W-4 and IRS tax tables.
Social SecurityYesIRSEmployee pays 6.2% up to the annual federal wage base.
MedicareYesIRSEmployee pays 1.45% on all wages, plus 0.9% additional tax above federal thresholds.
West Virginia State Income TaxYesWest Virginia State Tax DepartmentWithhold using state tables and Form WV/IT-104; rates are graduated by income level.

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Complying with Labor Laws: Wages & Working Hours In West Virginia

As an employer, it’s essential for your company to understand the state’s wage and hour rules so you can protect your business and your employees. From minimum wage requirements to overtime obligations, staying compliant helps you avoid penalties and maintain fair, consistent practices.

Minimum Wage in West Virginia

Most employers in West Virginia must pay at least $8.75 per hour, which is higher than the federal minimum wage. Smaller employers with fewer than 6 employees and certain exempt categories may follow different rules, but many businesses in the state are covered. You should also confirm whether any local ordinances or federal contract requirements impose higher rates for your workforce.

Working Hours in West Virginia

West Virginia generally follows federal Fair Labor Standards Act principles for hours worked, requiring you to pay nonexempt employees for all hours they are suffered or permitted to work. The state does not set a daily maximum for adults, but you must comply with youth employment limits and provide a 20-minute meal break for employees who work at least 6 consecutive hours. Accurate timekeeping is essential so you can correctly calculate regular and overtime pay.

Overtime in West Virginia

Nonexempt employees in West Virginia must receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek, consistent with federal law. You must determine exempt status under the FLSA duties and salary tests before treating someone as exempt from overtime. Your company should define a fixed 7-day workweek in writing and require preapproval for overtime while still paying for all overtime actually worked.

Providing Employee Benefits And Leave In West Virginia

West Virginia does not mandate broad private-sector benefit packages, but offering health insurance, retirement plans, and paid leave can make your company more competitive. If you average 50 or more full-time employees across the U.S., the federal Affordable Care Act requires you to offer affordable, minimum-value health coverage or face potential penalties. You should benchmark benefits against regional employers to attract and retain talent in the state.

Mandatory Leave Policies in West Virginia

Leave TypeRequired?Key Details
Family and Medical LeaveYes, for covered employers under federal FMLAEmployers with 50 or more employees must provide up to 12 weeks of unpaid, job-protected leave for qualifying reasons.
Paid Sick LeaveNo, not generally required statewideWest Virginia does not mandate paid sick leave for most private employers, though you may adopt your own policy.
Military LeaveYesFederal USERRA and state law protect employees’ right to unpaid leave and reemployment after covered military service.
Jury Duty LeaveYesYou must allow unpaid time off for jury service and may not retaliate; pay is not required under state law.
Voting LeaveYesEmployees are generally entitled to up to 3 hours of paid time off to vote if they lack sufficient nonworking time.
Bereavement LeaveNoWest Virginia does not require bereavement leave for private employers, but many companies offer it as a benefit.

Paid Time Off in West Virginia

West Virginia law does not require private employers to provide paid vacation or general PTO, so you can design your own policy. If you choose to offer PTO, you should clearly state in writing how employees earn it, whether unused time carries over, and what happens to balances at termination. Courts often look to your written policy and past practice to resolve disputes, so consistent administration is critical.

Maternity & Paternity Leave in West Virginia

There is no separate state maternity or paternity leave law for most private employers in West Virginia, but federal FMLA may provide up to 12 weeks of unpaid, job-protected leave for eligible employees after the birth or placement of a child. You should coordinate FMLA with any employer-sponsored short-term disability or paid parental leave benefits you offer. Make sure your policies explain eligibility, how to request leave, and how benefits and job protection work during the leave period.

Sick Leave in West Virginia

West Virginia does not mandate paid sick leave for private-sector employees, so you can decide whether to offer paid or unpaid sick time. If you provide sick leave, your policy should address accrual rates, permitted uses (such as the employee’s illness or a family member’s care), and any documentation requirements. You must also comply with federal laws like the Americans with Disabilities Act when handling extended illness or accommodation requests.

Military Leave in West Virginia

Employees in West Virginia who serve in the armed forces, National Guard, or reserves are protected by federal USERRA and state military leave laws. Your company must allow unpaid leave for covered service, maintain certain benefits, and reinstate eligible employees to the same or comparable position upon timely return. You should train managers not to discriminate based on military status and to escalate any military leave requests to HR for proper handling.

Jury Duty in West Virginia

West Virginia employers must allow employees time off to serve on a jury and may not threaten or penalize them for complying with a summons. State law does not require you to pay employees for this time, but many employers choose to provide some paid jury leave as a benefit. You can require proof of service, such as the jury summons or attendance slip, and should explain your pay practices in your handbook.

Voting Leave in West Virginia

West Virginia law generally entitles employees to up to 3 hours of paid time off to vote in an election if they do not have sufficient free time while polls are open. You may specify when during the workday employees can be absent to vote, as long as you do not interfere with their ability to cast a ballot. You can request reasonable advance notice so you can plan staffing around elections.

Bereavement Leave in West Virginia

There is no statewide requirement for private employers in West Virginia to provide bereavement leave. Many companies voluntarily offer 1–5 days of paid or unpaid leave for the death of an immediate family member to support employees during difficult times. Whatever policy you adopt, document the eligibility rules, length of leave, and whether proof such as an obituary may be required.

Employment Termination Protocols in West Virginia

When it comes to terminating employment in West Virginia, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

West Virginia is an at-will employment state, so you can generally terminate employment at any time for any lawful reason, provided you do not violate contracts, discrimination laws, or retaliation protections. You should document performance issues, follow your disciplinary procedures consistently, and conduct a brief termination meeting that covers final pay timing, benefits status, and return of company property.

Notice Period

West Virginia law does not require advance notice of termination for individual employees, but written employment contracts or collective bargaining agreements may impose notice obligations. Federal WARN rules can require 60 days’ notice for certain large-scale layoffs or plant closings affecting qualifying employers. Even when not required, giving reasonable notice or severance can reduce disputes and protect your company’s reputation.

Severance

Severance pay is not mandated in West Virginia, so you may decide whether to offer it and under what conditions. Many employers provide severance in exchange for a signed release of claims, especially in layoffs or higher-risk separations. Any severance policy should be written, consistently applied, and reviewed with counsel to ensure compliance with federal laws on waivers and age discrimination.

Hiring Employees in West Virginia with an employer of record

An Employer of Record makes it easy to hire in West Virginia if you don’t have your own entity set up, by handling the heavy-lifting for you. They take care of compliant employment contracts, all required taxes, and benefits administration for you, so you can focus on growth instead

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with West Virginia's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with West Virginia's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with West Virginia's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by West Virginia's labor laws, such as health insurance, pension contributions, and statutory leave.
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ABOUT THE AUTHOR

Jaime Watkins

Jaime is a content specialist at Playroll, specializing in global HR trends and compliance. With a strong background in languages and writing, she turns complex employment issues into clear insights to help employers stay ahead of the curve in an ever-changing global workforce.

Hiring Employees in West Virginia FAQs

How do you set up payroll processing in West Virginia?

To set up payroll processing in West Virginia, you first register your business with the West Virginia State Tax Department for a withholding tax account and with WorkForce West Virginia for unemployment insurance. Then you choose a payroll system, collect Form W-4 and West Virginia Form WV/IT-104 from each employee, track hours worked, calculate and withhold federal and West Virginia taxes, and remit payments and returns on the schedules assigned by each agency while paying employees at least twice per month as state law requires.

How does an Employer of Record help you hire in West Virginia?

An Employer of Record helps you hire in West Virginia by acting as the legal employer for tax and compliance purposes while you manage the employee’s daily work. The provider already has the necessary West Virginia registrations, runs payroll, withholds and remits state income tax and unemployment contributions, secures workers’ compensation coverage, issues compliant contracts and notices, and keeps you aligned with state wage, hour, and leave rules so you can hire quickly without forming a local entity.

Is there a minimum wage requirement for employees in West Virginia?

Yes, there is a minimum wage requirement for employees in West Virginia, and most covered employers must pay at least $8.75 per hour, which is higher than the federal minimum. Smaller employers with fewer than 6 employees and certain exempt categories may fall outside the state minimum wage law, but many businesses must follow the $8.75 rate, so you should confirm your coverage status before setting pay.

How much does it cost to employ someone in West Virginia?

The cost to employ someone in West Virginia includes their gross wages (at or above the $8.75 state minimum wage for covered employers), plus employer payroll taxes such as Social Security, Medicare, federal and state unemployment insurance, and workers’ compensation premiums. You should also budget for benefits like health insurance or retirement plans, paid time off, payroll processing fees, and any equipment or training costs, then compare this fully loaded cost to your budget before hiring.

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