VIRGINIA EMPLOYMENT COMMISSION

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VIRGINIA EMPLOYMENTCOMMISSION
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Tax Rates and Benefit Charges
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Types Of New Employer Tax Rates

• New employers assigned Base Tax Rate (2.5), plus
  Pool Cost Charge and Fund Building Charge. (New
  employer rate varies each year based on Trust
  Fund factors. Assigned for 2 - 3 calendar years)
• If acquiring an existing business Successor
  assigned Predecessor tax rate unless transfer of
  experience waived (Must be waived within 60 days
  of the date of acquisition.not notification.)
• Out-of-State Building/Highway Contractors -
  Assigned maximum tax rate.

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Experience Rating After your New Employer Rate

• Based on employers experience consisting of up
  to last 4 completed fiscal years (July 1 through
  June 30)
• Charges for benefits paid are divided by
  employers SUTA paid taxable payroll for that
  period to create benefit ratio.
• Benefit ratio converted to percentage form and
  applied to experience rating tax table to create
  Base Tax Rate

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Additional Tax Rate Costs

• Pool Cost Charge Compensates for charges that
  cannot be assigned to any specific employer
  (out-of-business, not-covered, higher than max
  rate, etc)
• Fund Building Charge (.2) Imposed when the
  trust fund balance does not exceed 50 solvency

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Tax Rate Notice

• Generally mailed in November notifying employer
  of tax rate for upcoming calendar year
• Reflects unemployment paid taxable payroll and
  unemployment benefits paid for last four fiscal
  years
• Tax Rates normally assigned by calendar year
• Tax Rate Base Tax Rate Pool Cost Charge
  Fund Building Charge

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Unemployment Benefit Charges

• Quarterly charge statements are sent to employers
  identifying claimants and benefit amounts paid
• For SUTA TAX Paying Employers Charge claimants
  last 30 working day/240 hour employer
• Work days do not have to be consecutive
• Disputed claims Employers should respond timely
  to all inquiries by VEC staff to ensure effective
  participation in the adjudication process

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VEC Tax Rate Information
2012 2011 2010 2009 2008
New Employer Assigned Rate 3.23 3.17 2.98 2.58 2.52
Minimum Computed Rate 0.83 0.77 0.58 0.18 0.12
Maximum Computed Rate 6.93 6.87 6.68 6.28 6.22
Pool Cost Charge 0.53 0.47 0.28 0.08 0.02
Fund Bldg Charge 0.20 0.20 0.20 n/a n/a












































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Average Tax Per EmployeeState Comparisons
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Reimbursable (Self-Insured) Employers

• All state agencies, many political subdivisions,
  and many 501c3 non-profit organizations
• Do not pay quarter taxes like tax-paying
  employers, but still file quarterly.
• Pay quarterly bill pro-rated based on employers
  reported wage amounts in claimants base period.

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Reimbursable Accounts Unique Features

• May not be separating employer but gets charge
  due to claimants base period wages
• (or alternate base period)
• Pays dollar-for-dollar to reimburse Trust Fund
  for benefits paid on pro-rated basis
• If claimant is later disqualified, employer
  remains responsible for bill until over-payment
  is recovered from claimant

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New Information for 2011

• FUTA - Due to outstanding loans SUTA tax credit
  is reduced by .3 (5.4 to 5.1)
• FUTA - Effective 7/1/2011 gross FUTA tax is
  reduced from 6.2 to 6
• Effective November 1, 2011, VEC will no longer
  accept magnetic media for filing quarterly tax
  reports
• Employers with over 100 employees - must submit
  payroll by either iFile or Web Upload for 4th
  qtr. 2011

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Resources

• See www.vec.virginia.gov for the following
• The VEC office serving your area
• For state UI Tax information - ask to speak to a
  tax rep
• For Benefits information - ask to speak to a
  supervisor or manager
• Virginia Unemployment Compensation Act
• Virginia Employers Handbook
• FAQs - Employer UI Tax Questions
• FAQs - Unemployment Benefits

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Additional Information

• Try iFile or Web Upload for a new and improved
  way to file your VEC and Department of Taxation
  information

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Questions?