Cost of Doing Business
A Profitable Location for Your Business
Newport News is home to a stable, strong and diverse economy. With a favorable labor climate and a highly productive work force, businesses will find that the so-called “hidden” costs of labor are low for companies located in Newport News. Workers’ compensation, unemployment insurance and fringe benefit costs are a pleasant surprise in Newport News—not an unwelcome nightmare.
- Virginia is a “loss cost” state with respect to worker’s compensation.
- Virginia’s workers’ compensation rates are among the lowest in all fifty states.
- In a study of 44 states by the National Council on Compensation Insurance, Virginia had the lowest frequency of injury claims.
- Factors contributing to Virginia’s favorable worker’s compensation rating include a restrictive definition of compensable injury, a seven-day waiting period for disability benefits, a cap of 500 weeks on all benefits other than total permanent disability, a low rate of attorney involvement, and a user-friendly dispute resolution process.
- Virginia has the lowest unemployment insurance rate in the nation.
- Because unions are weak in the Newport News area, employers determine the level of fringe benefits paid to their workers.
When examining your firm’s labor costs, consider the whole picture and you will find that Newport News stands out as a place where business can be profitable.
Unemployment Insurance Tax Rates for Employers in Virginia
|
Minimum
|
0.1% of First $8,000
|
|
Maximum
|
6.21% of First $8,000
|
|
New Employer
|
2.5% of First $8,000
|
|
Out of State Construction Contractors (1st 3 yrs)
|
6.2% of First $8,000
|
|
Pool Tax
|
0.54%
|
|
Fund Building Tax
|
0.20%
|
|
Virginia Average Unemployment Insurance Employer Cost
|
0.31% of Total Wages
|
| Source: Virginia Employment Commission 1-18-2020 | |
“Virginia remains an excellent location for new or existing businesses. It has the best regulatory environment by our count, thanks to the second-best incentive programs in the country—as well as the fifth best tort atmosphere. Other high points include energy costs 30% below the national average and an educated labor force fueled by its proximity to Washington, D.C., and top colleges like the University of Virginia and William and Mary. Our rankings measure states on six main areas of importance: business costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Business costs are weighted the most… We look at a total of 32 data points to compile rankings of the six main categories.”
5.02
State Business Tax Climate Index
U.S. Average is 5
Note: The higher the score, the more favorable a state’s tax system is for business.
Source: Tax Foundation Updated 2020
1.13%
Unemployment Insurance Tax Rates
6th Lowest in the U.S.
Updated 1-18-2020
Source: US Dept. of Labor
Wages in Newport News are:
- 7% lower than in California
- 14.6% lower than in Massachusetts
- 2.8% lower than in Illinois
- 13% higher than in Georgia
Source: U.S. Bureau of Labor Statistics, November 2019 *Average annual pay for all covered workers
Construction Costs in Newport News are:
- 36.3% Lower than in Long Island
- 35% lower than in New York City
- 25.5% lower than in Philadelphia
- 10.1% lower than in Washington, DC
- 3.6% lower than in Atlanta
RS Means Building Construction Cost Data Book, 2019
Housing Costs in Newport News are:
- 275% lower than in New York City
- 660% lower than in San Francisco
- 207% lower than in Washington, DC
- 15% higher than in Boston
- 26.4% lower than in Chicago
2019 ACCRA Cost of Living Index, The Council for Community and Economic Research
Healthcare Costs in Newport News are:
- 14% lower than in Boston
- 8% lower than in New York City
- 15% Higher than Washington DC
- 6% higher than in Philadelphia
Source: 2019 ACCRA Cost of Living Index, The Council for Community and Economic Research
Overall Cost of Living in Newport News is:
- 101.7% lower than in New York City
- 190% lower than in San Francisco
- 63% lower than in Washington, DC
- 75% lower than in Boston
- 9% lower than in Philadelphia
Source: 2019 ACCRA Cost of Living Index, The Council for Community and Economic Research