WV Payroll: Employer Tax and Software Guide
West Virginia payroll for employers: the new post-SB 392 tax rates, the $9,500 unemployment base, the six-employee wage rule, and 10 providers compared.
West Virginia Payroll: The Employer Guide
Rates that changed retroactively in June, three figures most vendor pages still have wrong, and how 10 payroll providers price the work
West Virginia payroll is not complicated. There is no state disability program, no local income tax, no unusual pay frequency statute, and the unemployment wage base is among the lowest in the country. On the list of states that are hard to run payroll in, this one sits near the bottom.
What it does have is a moving target. The state has cut income tax rates three times in four years, and the most recent cut landed in the middle of 2026 with retroactive effect to January. The practical consequence is that a large share of the reference material available right now, including pages from established payroll vendors, publishes rates that are no longer current. Two other figures, the unemployment wage base and the new hire reporting deadline, also have incorrect versions circulating widely.
This guide covers what West Virginia actually requires with each figure checked against the state source, and how 10 payroll providers price the work at 5, 15, and 50 employees.
The rate change that broke the reference pages
Senate Bill 392 was signed March 31, 2026 and took effect June 12, 2026, cutting every income tax bracket by 5 percent retroactively to January 1, 2026. That combination of a mid-year effective date and a retroactive application is the reason so much published material is now wrong.
| Taxable income | Tax | Rate on excess |
|---|---|---|
| Not over $10,000 | 2.11% of taxable income | Applies to the full amount |
| $10,000 to $25,000 | $211 | plus 2.81% over $10,000 |
| $25,000 to $40,000 | $632.50 | plus 3.16% over $25,000 |
| $40,000 to $60,000 | $1,106.50 | plus 4.22% over $40,000 |
| Over $60,000 | $1,950.50 | plus 4.58% over $60,000 |
Those brackets apply to individuals, joint filers, and heads of household. Married taxpayers filing separately use halved thresholds, with the top bracket beginning at $30,000. Employers should be running the revised IT-100.2.A percentage method or IT-100.2.B table method dated March 2026, and the value of a state withholding allowance stayed at $2,000, so only the rates moved.
The reduction mechanism is worth understanding because it will happen again. West Virginia embedded a revenue trigger in its 2023 reform: when general revenue exceeds a specified threshold, rates drop further without new legislation. Senate Bill 392 was a discretionary cut on top of that mechanism, and the trigger remains in place. Any West Virginia rate figure should be treated as current-until-further-notice rather than settled.
What West Virginia actually requires from employers
Two registrations, two ongoing filings, and no local layer to worry about.
Registration and withholding
Withholding registration goes to the West Virginia Tax Division and unemployment registration to WorkForce West Virginia, and both can generally be handled through the state One Stop Business Portal in one pass. Employees complete Form IT-104, the state withholding exemption certificate, which is required separately from the federal W-4. Our guide to federal withholding covers how the federal side works alongside it.
Unemployment insurance
Paid entirely by the employer through WorkForce West Virginia, on one of the lower wage bases in the country.
| Item | 2026 figure | Notes |
|---|---|---|
| Taxable wage base | $9,500 | Set in West Virginia Code Chapter 21A |
| New in-state employer rate | 2.7% | Includes a 1 percent surtax |
| Out-of-state construction | 8.5% | Higher entry rate for construction employers based elsewhere |
| Experienced employer range | 1.5% to 8.5% | Assigned annually based on claims history |
A $9,000 wage base appears on several vendor pages and payroll guides. It reflects a conditional provision in prior law that never took effect, and using it means under-collecting on every employee who earns more than $9,000. The $9,500 figure is what appears in the WorkForce West Virginia Employer Handbook. Our guide to state unemployment tax covers how the bases compare nationally.
New hire reporting in 14 days
West Virginia Code section 48-18-125 requires reporting new hires within 14 days, and the WorkForce West Virginia Employer Handbook states the same. The penalty is up to $25 per failure, rising to up to $500 where the failure results from a conspiracy between employer and employee.
The six-employee rule that changes which minimum wage applies
West Virginia sets its minimum wage at $8.75 per hour, unchanged since January 1, 2016, with a tipped cash wage of $2.62 reflecting a 70 percent tip credit. The rate itself is unremarkable. The coverage rule is not.
| Employer size at one location | Applicable minimum | Basis |
|---|---|---|
| Six or more employees | $8.75 state minimum | West Virginia Code section 21-5C applies |
| Fewer than six | $7.25 federal minimum | State law does not apply under section 21-5C-1(e) |
| Tipped, six or more | $2.62 cash wage | 70 percent tip credit, employer tops up to $8.75 |
Under section 21-5C-1(e), the state minimum wage law does not apply to employers with fewer than six people employed during a workweek at any one separate, distinct, and permanent location. Businesses below that line generally fall under the federal minimum of $7.25 instead, assuming Fair Labor Standards Act coverage applies.
Two practical consequences. First, the threshold counts by location rather than by company, so a business with four people at each of two locations is measured separately at each. Second, crossing from five to six employees at a single site changes the applicable minimum wage, which is exactly the kind of headcount-triggered change a payroll system will not flag on its own. House Bill 5485 proposed raising the state rate to $11.00 per hour from January 2027 but stalled in committee before the 2026 session ended.
10 payroll providers for West Virginia employers compared
Every provider below files West Virginia withholding and unemployment. Given the mid-year rate change, the question that separates them right now is which withholding tables they are actually running.
| Provider | Best For | Starting Price | Pricing Model | WV Filing | Multi-State Included | Onboarding Tools | Trial |
|---|---|---|---|---|---|---|---|
| OnPay | All-in pricing, every state | $49 + $6/ee | Base + PEPM | 1 month | |||
| Gusto | First payroll purchase | $49 + $6/ee | Base + PEPM | Until 1st run | |||
| Patriot | Lowest cost, single state | $37 + $5/ee | Base + PEPM | 30 days | |||
| QuickBooks | Books already in QuickBooks | $50 + $6.50/ee | Base + PEPM | 30 days | |||
| SurePayroll | Micro and household employers | $29 + $7/ee | Base + PEPM | Varies | |||
| Square | Retail and food service | $35 + $6/ee | Flat + PEPM | Free trial | |||
| Paylocity | Growing past 50 employees | Quote | Quote | Demo | |||
| ADP RUN | Compliance depth under 50 staff | ~$79 + $4/ee | Quote | 3 months | |||
| Paychex Flex | A person to call about a notice | Quote | Quote | Varies | |||
| Rippling | Payroll tied to HR and IT | $35 + $8/ee+ | Modular PEPM | Demo |
OnPay
One plan at $49 per month plus $6 per employee with every feature included and no tier to climb. Tax filing covers all 50 states with no multi-state surcharge, which matters in a state that borders five others and has substantial cross-border commuting into Ohio, Pennsylvania, Maryland, Virginia, and Kentucky. Year-end filing is included and the first month is free without a credit card.
Gusto
The most common first payroll purchase for US small businesses. Tax filing runs automatically, pricing is published, and the Simple plan runs $49 per month plus $6 per employee after a March 2026 base increase.
The West Virginia catch is the border question. Simple covers single-state payroll only, and the northern panhandle sits minutes from Ohio and Pennsylvania while the eastern panhandle is inside the Washington commuter shed. One such hire moves the account to Plus at $80 plus $12 per employee.
Patriot Software
The cheapest legitimate full-service payroll at $37 per month plus $5 per employee, covering federal and state tax filing plus new hire reporting. Basic at $17 plus $4 calculates only and leaves depositing and filing to the employer. For a single-state West Virginia business under 20 people, nothing else comes close on cost.
Additional state filings cost $12 per month each, which narrows the advantage for anyone with staff across a panhandle border.
QuickBooks Payroll
Core runs $50 per month plus $6.50 per employee with full-service tax filing on every tier, following a per-employee price increase across the Workforce plans on July 1, 2026. The reason to pick it is unchanged: if the books already live in QuickBooks Online, payroll entries land in the general ledger with no export step.
SurePayroll
Owned by Paychex and aimed at very small and household employers at roughly $29 per month plus $7 per employee. The flat $9.99 monthly multi-state fee regardless of state count is useful for an employer straddling a panhandle border, where two or three states can be involved at modest headcount.
Square Payroll
Full-service payroll at $35 per month plus $6 per person paid, with tax filing included. For a West Virginia restaurant or retail business already running Square point of sale, hours and tips flow into payroll with nothing to configure. That matters here because the 70 percent tip credit requires the employer to top up whenever tips fall short of $8.75, which needs accurate tip data every period.
Paylocity
A full HR and payroll platform aimed above the smallest end of the market. Notably, its West Virginia tax resources were updated to reflect the June 12, 2026 rate change promptly, which is a reasonable proxy for how quickly a vendor handles mid-year statutory shifts. Pricing is quote-only.
ADP RUN
The deepest tax compliance operation in the category, which for a state undergoing repeated rate reform means the table updates arrive without you chasing them. Third-party estimates put the Essential tier near $79 per month plus $4 per employee, but ADP does not publish rates and most buyers report paying more once add-ons land.
Paychex Flex
A service relationship rather than a software subscription, with a named contact at higher tiers. Pricing is quote-only, and quarterly administrative charges are a recurring theme in customer reports. Its published West Virginia compliance resource is one of the few that carries the correct $9,500 wage base and the correct new employer rates.
Rippling
A unified employee record where payroll, HR, and IT provisioning share one data model, starting at $35 per month plus $8 per employee for the core platform with payroll as a separate module. Real configurations land well above the headline figure. Multi-state registration runs inside the same workflow, which is useful across five borders, but the platform is overbuilt for a small West Virginia business.
What each provider actually costs a West Virginia employer
The table below models published rates at three headcounts plus the second-state column, which applies unusually often here: West Virginia borders five states and both panhandles sit inside other states' commuting sheds.
| Provider | 5 employees | 15 employees | 50 employees | 2nd State Cost | Notes |
|---|---|---|---|---|---|
| Patriot Full Service | $62 | $112 | $287 | $12/mo per extra state | Cheapest single-state option |
| SurePayroll | $64 | $134 | $379 | $9.99/mo flat | Micro-employer focus |
| Square Payroll | $65 | $125 | $335 | Included | Strong for hourly staff |
| OnPay | $79 | $139 | $349 | Included | No tier to climb |
| Gusto Simple | $79 | $139 | $349 | Forces Plus tier | An Ohio or Virginia hire changes this |
| QuickBooks Core | $83 | $148 | $375 | Fee per extra state | General ledger sync |
| ADP RUN Essential | ~$99 | ~$139 | ~$279 | Quote | Quote-only above Essential |
The pattern holds as elsewhere. Budget providers stay genuinely cheaper at every headcount, and the second-state column reorders the ranking: Gusto Simple is competitive until one Ohio or Virginia hire forces the Plus tier, at which point a 15-person payroll jumps from $139 to $260. For a wider view, see the payroll software for small business comparison and the payroll pricing guide.
Choosing a payroll provider for West Virginia
Four questions, and the first one is specific to this moment rather than to this state.
The West Virginia HR compliance guide covers the surrounding employment law, and our guide to tipped minimum wage covers how the 70 percent tip credit works in practice.
Before you choose
FirstHR does not process payroll, file payroll taxes, or administer benefits. Every provider above does something we do not, and if payroll is the problem you are solving, one of them is your answer.
What we handle is the layer underneath, and West Virginia gives it a specific deadline. The new hire report is due within 14 days of hire, which for someone who starts mid-cycle can fall before the first payroll run, and the report needs information that comes from onboarding paperwork rather than from payroll. FirstHR covers onboarding workflows, e-signatures on the I-9, the federal W-4 and the state IT-104, document collection, and employee records for US teams of 5 to 50 people at a flat $98 to $198 per month. If the recurring failure is paperwork arriving after the deadline rather than the tax math itself, that is a different problem than payroll processing, and it is the one we built for.
Frequently Asked Questions
What are the current West Virginia income tax withholding rates?
Five brackets from 2.11 to 4.58 percent following Senate Bill 392, effective June 12, 2026 and retroactive to January 1, 2026. The top bracket is $1,950.50 plus 4.58 percent of the excess over $60,000. Employers should be running the revised IT-100.2.A or IT-100.2.B tables dated March 2026.
Why do different sources give different West Virginia tax rates?
Because the state has cut rates three times in four years and the retroactive effective date means a page written in April 2026 could correctly show the old rates that day. The 2023 reform produced 2.36 to 5.12 percent, a trigger cut produced 2.22 to 4.82, and Senate Bill 392 produced the current 2.11 to 4.58. Check the date on any figure.
What is the West Virginia unemployment wage base?
$9,500 per employee under West Virginia Code Chapter 21A. New in-state employers pay 2.7 percent including a 1 percent surtax, out-of-state construction employers start at 8.5 percent, and experienced employers fall between 1.5 and 8.5 percent. The $9,000 figure on some vendor pages reflects a provision that never took effect.
How quickly must West Virginia employers report new hires?
Within 14 days of the hire date under Code section 48-18-125, with a penalty of up to $25 per failure and up to $500 where a conspiracy is involved. Some references state 20 days, which is the common national figure but is wrong for this state.
What is the West Virginia minimum wage and who does it apply to?
$8.75 per hour with a tipped cash wage of $2.62 under a 70 percent tip credit. State law applies only to employers with six or more people at one separate, distinct, and permanent location; below that, the federal $7.25 generally applies. House Bill 5485, proposing $11.00 from 2027, stalled in committee.
Does West Virginia have local payroll taxes?
No local income tax in the percentage-of-wages sense. Several municipalities levy a flat city service fee on people working within city limits, a fixed dollar amount rather than a rate, and whether it runs through payroll varies by municipality. Confirm with the specific city.
Where do West Virginia employers register for payroll accounts?
Withholding with the West Virginia Tax Division and unemployment with WorkForce West Virginia, both generally available through the state One Stop Business Portal in one pass. Employees complete Form IT-104 separately from the federal W-4. See our guide to new hire paperwork.
How much does payroll software cost for a West Virginia small business?
At 5 employees, published July 2026 rates run roughly $62 for Patriot Full Service, $64 for SurePayroll, $65 for Square Payroll, $79 for OnPay or Gusto Simple, and $83 for QuickBooks Core. At 50 employees the same plans land between $287 and $375. ADP RUN, Paychex Flex, and Paylocity quote individually.