You already run a team somewhere between Northern Virginia, Richmond, and Hampton Roads. Pay runs, benefit renewals, and HR forms keep swallowing hours you meant for customers. You have company: the SBA Office of Advocacy counts 880,366 small businesses in the state, employing 1.6 million people. Most owners who search for payroll services Virginia firms sell want the same thing: time back.
3 pressure points make that search urgent. The minimum wage climbs from $12.77 to $15.00 by 2028. Paid sick leave starts in July 2027 for larger employers and reaches every employer by 2029, with paid family leave contributions following in 2028. Workers’ comp is required once you have more than 2 employees, and that is often the moment a Virginia PEO enters the conversation.
Virginia Payroll Services and PEOs: Why Small Businesses Use Them
Payroll here now changes on a published timetable. HB 1 and SB 1 were signed on April 9, 2026. Under them, the minimum wage rises to $13.75 on January 1, 2027, and to $15.00 on January 1, 2028. From 2029, it follows inflation. Paid sick leave accrual begins on July 1, 2027, for employers with 50 or more employees. The threshold drops to 25 employees on January 1, 2028, and disappears on January 1, 2029. Paid family and medical leave deductions start on April 1, 2028. The stable part is income tax: progressive rates from 2% to 5.75%, with no local income tax. The same applies to outsourcing payroll: Virginia services firms, shops, and contractors all face 3 years of scheduled changes to rates and deductions.
INSIGHT: What changes for Virginia payroll in 2027 and 2028?
3 new laws reach payroll on fixed dates. Load the new rates, accruals, and deductions before each one starts.
- Minimum wage: $13.75 from January 1, 2027, then $15.00 from January 1, 2028.
- Paid sick leave: up to 40 hours a year, phased in from July 1, 2027.
- Paid family and medical leave: payroll contributions from April 1, 2028.
- Income tax withholding: 2% to 5.75%, with no local income tax.
Your own filings as an employer add a second timetable. Only the employer pays unemployment insurance (UI) tax on the first $8,000 of each employee’s annual wages. New employers start at a 2.5% base rate, and the Virginia Employment Commission (VEC) can add pool-cost and fund-building charges. Wage reports go to VEC every quarter, and each new hire goes to the Virginia New Hire Reporting Center. State withholding returns follow a quarterly, monthly, or semi-weekly schedule, with an annual summary due by January 31. Federal FICA and FUTA deposits come in addition. Firms that provide the payroll administration services Virginia employers rely on run each of these filings on a fixed calendar, and so does a PEO.
Workers’ compensation is the usual reason a small company moves from a payroll service to a PEO. Coverage is required once you have more than 2 employees, and part-time, seasonal, and temporary staff count. There is no state fund, and the Virginia Workers’ Compensation Commission (VWC) names a registered PEO as 1 route to coverage. Benefits are the second reason: pooled group health, dental, vision, and a 401(k) help with hiring. A qualified 401(k) also exempts you from RetirePath Virginia, the state auto-IRA for employers with 5 or more eligible employees. Health coverage is optional below 50 full-time-equivalent employees, yet candidates ask about it first. That mix explains the demand for PEO services in Virginia.
INSIGHT: What does a Virginia employer have to provide?
Hire a third employee and workers’ comp becomes mandatory. Many employers without a retirement plan must also offer one, which is where PEO plans help.
- Workers’ comp: required with more than 2 regularly employed workers.
- No state workers’ comp fund: insurers, self-insurance, group associations, or a registered PEO.
- RetirePath Virginia: 5 or more eligible employees, 2 years operating, no qualified plan.
- Federal ACA coverage mandate: applies from 50 full-time-equivalent employees.
In practice, the decision comes down to 3 models. A payroll service runs payroll and tax filings, and you remain the sole employer. A PEO becomes a co-employer of your staff and adds benefits, workers’ comp, and HR to payroll, while you keep daily management. HR outsourcing without co-employment sits in between. If you are unsure what a PEO is, start there before comparing quotes. Then run the local check. A PEO in Virginia must register with VWC before providing services and give co-employees a written summary of each party’s duties. At the federal level, the IRS keeps a public list of Certified PEOs (CPEOs). A certified PEO is solely liable for federal employment taxes on wages it pays.
I reviewed 15 options for local employers: Virginia payroll and PEO firms, plus national PEOs that serve the state. Each entry shows what the provider handles, its pricing model, and the type of business it fits. Together they cover the HR payroll services Virginia owners ask about most. Owners who also want a national comparison can read my guide to the best PEO companies.
Top 15 PEO Virginia Providers and Payroll Companies
3 questions narrow the list quickly. Do you need payroll and tax filing only, benefits and workers’ comp bundled with payroll, or HR help without co-employment? How many people do you employ, given the workers’ comp rule above 2 employees, RetirePath at 5, and the ACA mark at 50? Would you rather work with a firm down the road or a national PEO with a larger benefits program?
For the PEO companies in Virginia on this list, I checked what each firm shows about VWC registration, CPEO status, and accreditation. I also looked at withholding and VEC filings, readiness for the 2027 wage step and sick leave accrual, and the workers’ comp model. The review also covered health and 401(k) plans, HR and handbook support, and clear pricing. The order is alphabetical on purpose, to keep the list neutral.
All 15 providers appear in A-to-Z order. The sequence says nothing about quality, preference, or ranking.
ADP TotalSource
Provider Type:
National US PEO serving Virginia
Company Description:
ADP TotalSource is ADP’s PEO for small and midsize businesses. Under co-employment, it combines payroll, benefits administration, workers’ comp, and compliance, supported by a dedicated HR business partner. ADP TotalSource entities appear on the IRS CPEO list, certified since January 1, 2017.
Key Specialty Area:
Co-employment backed by a large payroll platform
Service Cost:
Not published; quote based on headcount and benefits
Top Advantages:
- Dedicated HR business partner for each client, per ADP
- Benefits handled from plan negotiation through enrollment
- ADP’s site reports accreditation by ESAC
Scope of Services:
- Payroll platform with specialist support and compliance guardrails
- Group benefits administration and employee enrollment support
- Workers’ comp, risk and workplace safety programs
Our Verdict
A fit for a growing Richmond or Northern Virginia company that wants a large, certified PEO behind its payroll.
C2 Essentials
Provider Type:
PEO and HR outsourcing firm based in Ashburn, Virginia
Company Description:
C2 Essentials operates from Ashburn in Loudoun County and has nearly 3 decades of experience. It offers 2 models: a co-employment PEO and an Administrative Services Organization (ASO) plan without co-employment. Clients range from small firms to mid-market companies and federal contractors.
Key Specialty Area:
Payroll and HR for Northern Virginia contractors
Service Cost:
Not published; pricing by demo and quote
Top Advantages:
- Choice between a co-employment PEO and an ASO plan
- Dedicated practice for federal government contractors
- C2 Connection portal covers payroll, time off, and benefits
Scope of Services:
- Payroll processing and payroll tax administration
- Large-group health, retirement and insurance plans
- HR support, recruiting and workers’ comp safety programs
Our Verdict
My pick for a Northern Virginia government contractor that wants payroll and HR handled by a nearby team.
Engage PEO
Provider Type:
National US PEO serving Virginia
Company Description:
Engage PEO is a Tampa-based PEO for small and mid-sized businesses that says it serves clients in all 50 states. Its package covers payroll, HR consulting and compliance, employee benefits, and risk and workers’ comp. Engage PEO, LLC is on the IRS CPEO list.
Key Specialty Area:
HR advice from licensed employment attorneys
Service Cost:
Not published; quote based on headcount and services
Top Advantages:
- Every HR consultant is a licensed employment attorney, per Engage
- Listed by the IRS as a CPEO since 2017
- ESAC accreditation and SOC examinations stated on its site
Scope of Services:
- Automated payroll with tax filing and direct deposit
- ACA-compliant employee benefits and plan administration
- HR consulting, compliance and workers’ comp support
Our Verdict
Worth a call for a Virginia employer that expects legal questions around the new leave rules.
FrankCrum
Provider Type:
National US PEO serving Virginia
Company Description:
FrankCrum is a family-owned PEO founded in 1981 and based in Clearwater, Florida. It serves businesses across the US through co-employment, offering payroll, HR, benefits, workers’ comp, and retirement plans. The company says more than 4,700 businesses use it.
Key Specialty Area:
Family-owned PEO with in-house workers’ comp
Service Cost:
Not published; quote based on payroll and risk profile
Top Advantages:
- Workers’ comp usually placed with its affiliated insurer
- MyFrankCrum portal for paperless onboarding and enrollment
- HR consultants advise on hiring and employee relations
Scope of Services:
- Payroll processing with employee self-service
- Health, dental, vision, and retirement benefits
- Workers’ comp policies and claims handling
Our Verdict
A sensible option for a Virginia trades or service business whose main worry is workers’ comp cost and claims.
G&A Partners
Provider Type:
National US PEO serving Virginia
Company Description:
G&A Partners is a Houston-based PEO that grew out of a CPA practice and dates its start to 1995. It says it supports small and mid-sized businesses in all 50 states, with plans grouped by company size. G&A Outsourcing VII, LLC is on the IRS CPEO list.
Key Specialty Area:
Plans sized for 11 to 99 employees
Service Cost:
Not published; quote based on company size
Top Advantages:
- Service plans grouped by headcount band
- Accounting roots show in payroll and tax work
- A G&A entity holds IRS CPEO certification
Scope of Services:
- Payroll administration and employment tax filing
- Employee benefits and enrollment administration
- HR guidance, compliance help, and handbook support
Our Verdict
Suits a Virginia company with 11 to 99 employees that wants a full HR department without hiring one.
INFINITI HR
Provider Type:
National US PEO based in neighboring Maryland
Company Description:
INFINITI HR lists offices in Columbia, Maryland, and Scottsdale, Arizona. It offers a full-service PEO with payroll, employee benefits, compliance and risk management, business insurance, recruiting, and a franchise-focused program. INFINITI HR, LLC has been on the IRS CPEO list since October 2018.
Key Specialty Area:
Full-service PEO with a franchise program
Service Cost:
Not published; quote by phone or online request
Top Advantages:
- Maryland office within reach of Northern Virginia clients
- Separate PEO program built for franchise owners
- Business insurance offered next to HR services
Scope of Services:
- Payroll processing and tax filing
- Employee benefits administration and compliance
- Risk management, business insurance and recruiting support
Our Verdict
A reasonable choice for a franchise owner with units on both sides of the Potomac.
Insperity
Provider Type:
National US PEO with a Norfolk office
Company Description:
Insperity is a full-service PEO headquartered in Kingwood, Texas, serving small and mid-sized businesses under co-employment. Its Virginia locations page lists a sales office in Norfolk. Insperity PEO Services, L.P. holds IRS CPEO certification dated January 1, 2017.
Key Specialty Area:
Full-service PEO with a Hampton Roads presence
Service Cost:
Not published; quote after a consultation
Top Advantages:
- In-state sales office in Norfolk
- HR technology included with the PEO service
- Insperity entities certified by the IRS as CPEOs
Scope of Services:
- Payroll including Virginia withholding and VEC reports
- Group health, dental and retirement plan access
- HR support, training and compliance guidance
Our Verdict
My pick for a Hampton Roads company that wants a national benefits program with an in-state office.
LaunchPoint PEO
Provider Type:
PEO based in Manassas, Virginia
Company Description:
LaunchPoint PEO works from Center Street in Manassas. It is a PEO company Virginia small businesses can use for HR, payroll, benefits, and recruiting in 1 package. The site focuses on small employers and does not state a founding year or any certification.
Key Specialty Area:
Small-business PEO with in-house recruiting
Service Cost:
Not published; quote on request
Top Advantages:
- Recruiters on staff run targeted candidate searches
- Access to benefits usually reserved for larger employers
- HR help from onboarding through offboarding
Scope of Services:
- Payroll with wage calculation, pay stubs, and tax filings
- Benefits management for small teams
- HR compliance support and recruiting
Our Verdict
A good match for a Prince William County business that also needs help filling open roles.
Nextep
Provider Type:
National US PEO serving Virginia
Company Description:
Nextep is a Norman, Oklahoma PEO with nearly 30 years in business, serving small and medium-sized companies nationwide. Under co-employment, it manages HR, payroll, employee benefits, and risk and compliance on a single platform. Nextep, Inc. is on the IRS CPEO list.
Key Specialty Area:
Flat-fee PEO with a mobile payroll app
Service Cost:
Flat, itemized fee per the company; amount on quote
Top Advantages:
- Itemized flat-fee billing instead of a percentage of payroll
- Named Client Success Manager from the first day
- Payroll approval from a phone in 2 clicks
Scope of Services:
- Payroll with automated tax filings
- Health benefits and employee insurance access
- HR, risk, and compliance support
Our Verdict
Suits a Virginia owner who wants predictable billing and likes to approve payroll from a phone.
Outstaffing, Inc.
Provider Type:
PEO and payroll provider based in Chatham, Virginia
Company Description:
Outstaffing, Inc. was founded in Chatham in 1995 and says it was among the first PEOs registered in the Commonwealth. It runs a PEO service Virginia consulting, staffing, and real estate firms have used for years. A Payroll Hosting plan, without co-employment, was added in 2011.
Key Specialty Area:
Small Southside firm with 2 payroll models
Service Cost:
Not published; quote on request
Top Advantages:
- PEO plan issues the W-2 and pays all wages
- Payroll Hosting keeps your existing payroll setup
- Roots in consulting, staffing, and placement payroll
Scope of Services:
- Payroll, wage payment, and W-2 reporting
- Medical, dental, vision, and life coverage plus a 401(k)
- Benefits and payroll administration on a cloud platform
Our Verdict
Worth a look for a small Southside or Piedmont business that prefers a long-standing local firm.
Paychecks Plus
Provider Type:
Payroll and accounting firm based in Roanoke, Virginia
Company Description:
Paychecks Plus has served Roanoke Valley small businesses since 1996 from its Colonial Avenue office. It mixes payroll processing with bookkeeping, tax planning and consulting, and keeps a full-time CPA on staff. Its services page also describes a PEO arrangement covering payroll taxes, workers’ comp, and unemployment administration.
Key Specialty Area:
Payroll and bookkeeping for Roanoke Valley businesses
Service Cost:
Not published; quote from the Roanoke office
Top Advantages:
- Payroll, books, and tax returns from 1 office
- Full-time CPA available to small-business clients
- Local team reachable by phone on weekdays
Scope of Services:
- Payroll runs with payroll tax reports
- Bookkeeping, bank reconciliation, and monthly financials
- Business tax planning and startup consulting
Our Verdict
The natural choice for a Roanoke Valley owner who wants payroll and accounting under 1 roof.
PrestigePEO
Provider Type:
National US PEO serving Virginia
Company Description:
PrestigePEO opened in 1998 and is headquartered in Melville, New York. It serves small and mid-sized businesses with payroll, benefits, retirement plans, workers’ comp, HR, and compliance under co-employment. Prestige Employee Administrators, LLC carries an IRS CPEO certification dated January 1, 2017.
Key Specialty Area:
Benefits-led PEO for small and mid-sized firms
Service Cost:
Not published; quote based on headcount and plans
Top Advantages:
- Retirement plans offered alongside health benefits
- Company reports ESAC accreditation
- Compliance and risk guidance for multi-state employers
Scope of Services:
- Payroll administration and tax filing
- Health benefits and retirement plan administration
- HR guidance, workers’ comp and compliance support
Our Verdict
Fits a Virginia professional firm that ranks health and retirement benefits above everything else.
Questco
Provider Type:
National US PEO serving Virginia
Company Description:
Questco was founded in 1989 and is based in The Woodlands, Texas. It offers HR outsourcing across the US to small and mid-sized businesses through a customized service plan. QUESTCO HR LLC is on the IRS CPEO list.
Key Specialty Area:
Customized HR service plan with safety programs
Service Cost:
Not published; an HR cost calculator sits on its site
Top Advantages:
- Service plan written around each client’s goals
- Safety programs paired with workers’ comp coverage
- Dedicated HR team instead of a call queue
Scope of Services:
- Payroll available from the first day of service
- Medical plans and employee benefits administration
- HR operations, compliance and HR technology
Our Verdict
A solid option for a Virginia manufacturer or builder that wants safety and HR advice together.
VensureHR
Provider Type:
National US PEO serving Virginia
Company Description:
VensureHR is an Arizona-based PEO for small and mid-sized businesses with a dedicated state page. That page pitches PEO payroll, Virginia compliance help, and group benefits to firms in Virginia Beach, Norfolk, and other cities. I found no IRS CPEO listing under the Vensure name.
Key Specialty Area:
Broad PEO menu with a state-specific page
Service Cost:
Not published; quote after an HR assessment
Top Advantages:
- State page names: Virginia Beach and Norfolk
- Workers’ comp claims help from a risk team
- ACA and COBRA administration included in its service list
Scope of Services:
- Payroll administration plus payroll tax returns
- Group health insurance and retirement benefits
- HR help, workers’ comp and risk advice
Our Verdict
Reasonable for a Virginia Beach or Norfolk employer that wants many services from 1 large vendor.
XcelHR
Provider Type:
National US PEO based in neighboring Maryland
Company Description:
XcelHR is headquartered on Wisconsin Avenue in Bethesda, Maryland, and reports more than 30 years of work with small businesses. It offers both PEO and ASO services and describes itself as an IRS-certified PEO. The company cites 9,000 clients in its portfolio.
Key Specialty Area:
PEO services tuned for federal contractors
Service Cost:
Not published; quote on request
Top Advantages:
- FAR-compliant HR tools for government contractors
- PEO and ASO models under the same roof
- Applicant tracking and timekeeping software available
Scope of Services:
- Payroll and tax administration
- Employee benefits and risk management
- HR management and talent acquisition
Our Verdict
Suits a Northern Virginia federal contractor that wants its PEO a short drive away in Bethesda.
How Much Payroll Services and PEOs Cost in Virginia
Payroll-only firms usually charge per payroll run or per employee per month. A payroll service small business Virginia owners hire for pay and tax filing alone is the cheapest route. PEOs price in 2 ways: a fixed monthly amount per employee, or a share of total payroll. Both are usually set by quote. The PEO fee typically covers payroll and tax filing, benefits administration, workers’ comp administration, and HR support. Expect separate invoices for health premiums, workers’ comp premiums, 401(k) plan costs, and onboarding.
Then come the costs set by law, whatever the provider charges. You pay UI tax on the first $8,000 of wages, federal FICA and FUTA, and workers’ comp premiums. From April 2028, employers with more than 10 employees also pay half of the paid family and medical leave premium. For professional services payroll, Virginia firms with salaried staff often find a flat per-employee fee easier to budget. None of the 15 providers published a starting price when I checked, so compare total cost instead of the headline fee.
INSIGHT: What should HR payroll services in Virginia handle for you?
Payroll in the state changes on several fixed dates. Have every provider explain its preparation for each date.
- Withholding: state income tax at 2% to 5.75%.
- UI tax: employer-paid, on the first $8,000 of wages.
- Minimum wage steps: January 1, 2027 and January 1, 2028.
- Sick leave accrual: from July 1, 2027 for employers with 50 or more staff.
Some teams here also employ people in Florida, where there is no state income tax to withhold. If you need a PEO for Virginia headquarters and a Florida branch, my guide to PEO companies in Florida covers the providers active there. Several national names appear on both lists.
Staff in other states bring their own rules, and California is the most demanding. Its wage, leave, and payroll tax requirements differ sharply from what you know at home. My overview of PEO companies in California shows how providers handle that workload.
FAQs on Payroll Services and PEOs in Virginia
What is the difference between a payroll service and a PEO?
A payroll service calculates pay, withholds taxes, and files returns for you, and you remain the only employer. A PEO enters a co-employment agreement with your company. That lets it offer group health and retirement plans, provide workers’ compensation coverage, and handle HR paperwork alongside payroll. Under either model, you keep control of hiring, firing, and daily work. The practical difference is scope and price: payroll-only help costs less, while co-employment bundles more services and shares certain employer duties by contract.
Do PEOs have to register in Virginia?
Yes. State law requires a PEO to register with the Virginia Workers’ Compensation Commission before it provides services. It must report new and terminated client companies within 30 days and send its full client list every year. Co-employees must receive a written summary of each party’s rights and obligations, including how to file workers’ compensation and unemployment claims. The Commission answers registration questions on request, by phone or email. IRS certification is a separate federal status that covers only employment taxes.
When does a Virginia business need workers’ compensation?
A business needs coverage once it has more than 2 employees regularly working in the state. Part-time, seasonal, and temporary workers count toward that number, and so do corporate officers. A contractor must also count its subcontractors’ workers. No state fund exists, so coverage comes from a licensed commercial insurer, approved self-insurance, a group self-insurance association, or a registered co-employment provider’s program. Premiums depend on payroll, job classifications, and claims history, so request a quote before your third hire starts.
What is the minimum wage in Virginia, and when does it rise?
The state minimum wage is $12.77 an hour in 2026. A law signed in April 2026 raises it to $13.75 on January 1, 2027, and to $15.00 on January 1, 2028. After that, the rate adjusts each year with inflation, starting in 2029. Overtime is due after 40 hours in a workweek. Tipped and exempt roles follow their own rules. Check each step against your pay scales early, because raises at the bottom often push up the rates just above it.
Is paid sick leave required for Virginia employers?
Not yet for most employers. Today the requirement covers only certain home health workers. A 2026 law extends it in stages. Employers with 50 or more employees start on July 1, 2027, and those with 25 or more on January 1, 2028. All others follow on January 1, 2029. Employees earn 1 hour for every 30 hours worked, up to 40 hours a year. A separate paid family and medical leave program starts collecting payroll contributions in April 2028, with benefit applications opening in December 2028.
How much does a PEO cost for a Virginia business?
Most providers charge either a per-employee-per-month fee or a percentage of total payroll. Providers usually set both by quote, based on headcount, industry, and the benefits you choose. As a rule, the service fee does not include health premiums, workers’ compensation premiums, or retirement plan costs. Ask for a written breakdown that separates the administrative fee from pass-through costs. Then weigh the total annual cost per employee across 2 or 3 proposals, including setup charges and second-year renewal terms.
Helen is Anywherer’s Market Analyst & Content Researcher, with extensive experience in analyzing global employment markets and HR technology trends. She is skilled at turning complex market data into clear, well-researched insights that inform every piece of content. With a strong grasp of the EOR, PEO, and international hiring space, Helen plays a key role in keeping Anywherer’s research accurate, up to date, and genuinely useful for readers.
