Payroll Done Right

West Virginia Payroll Requirements: What Employers Need to Know in 2026

West Virginia has been actively cutting its income tax. After a series of rate reductions over 2023–2025, the 2026 brackets are: 2.36% on the first $10,000, 3.15% on $10,001–$25,000, 3.54% on $25,001–$40,000, 4.72% on $40,001–$60,000, and 5.12% on income above $60,000. The top rate was previously 6.5% just a few years ago. The reductions are part of a long-term goal of eliminating the income tax entirely, which West Virginia lawmakers have laid out as a multi-year plan depending on revenue conditions. For 2026, use the updated withholding tables from the West Virginia State Tax Department. Employees use Form WV/IT-104 for state withholding allowances.

West Virginia's minimum wage is $8.75/hr, above the federal $7.25 floor. The state raised it in 2016 and hasn't changed it since. There's no pending legislation for an increase in 2026. Tipped employees can be paid $2.62/hr (70% of the $8.75 state minimum less the tip credit), but if tips don't bring them to $8.75/hr in a given workweek, you owe the difference. West Virginia doesn't allow local minimum wages higher than the state floor. Charleston and Huntington both operate at $8.75/hr.

Unemployment insurance is run by WorkForce West Virginia. The SUI taxable wage base is $9,000 per employee for 2026. New employers pay 2.7% for their first three years. Experience-rated employers range from 1.5% to 8.5%. Quarterly SUI returns are due April 30, July 31, October 31, and January 31. Employers register for an account through WorkForce WV's online system before the first payroll. New hire reporting goes to the WV State Directory of New Hires within 20 days of hire.

West Virginia doesn't have state disability insurance or a paid family and medical leave program. The ongoing income tax reduction does require that employers update their withholding tables each year—if you're running payroll software, verify it pulls the current West Virginia tables at the start of each calendar year. Using prior-year tables will result in over-withholding and employee complaints. The WV State Tax Department posts updated withholding tables in December for the following year.

Federal requirements are standard: FICA at 7.65% employer and employee, FUTA net 0.6% after credit on the first $7,000, Form 941 quarterly, and W-2s distributed and filed by January 31, 2027. West Virginia requires employers to file annual W-2 reconciliations with the State Tax Department using Form IT-103 by January 31. Electronic filing is required for employers submitting 10 or more W-2s. West Virginia also has wage payment timing rules: final paychecks for separated employees must be paid within 72 hours (or on the next regular payday, whichever comes first).

More detail in our guides on West Virginia payroll taxes, 2026 SUI rates, and minimum wage.