Virginia Unemployment Compensation laws & HR compliance analysis

Virginia Unemployment Compensation: What you need to know

Virtually all employers are covered by the Virginia Unemployment Compensation Act (VA Code Sec. 60.2-100 et seq.) and are therefore subject to the state unemployment insurance tax, including, for example, those that:
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• In the current or preceding calendar year, paid wages of $1,500 or more in any calendar quarter or employed at least one person for some portion of a day in each of 20 weeks;
• Are tax-exempt, nonprofit organizations that employed four or more persons for some portion of a day in each of 20 weeks in the current or the preceding calendar year;
• Are subject to the Federal Unemployment Tax Act (FUTA);
• Bought the business of an employer covered by the state or federal unemployment law;
• Are agricultural employers and, in the current or preceding calendar year, paid $20,000 in wages in any calendar quarter or employed 10 or more persons for some portion of a day in each of 20 different weeks; and
• Are employers of domestic servants and paid $1,000 in wages in any calendar quarter of the current or preceding calendar year (VA Code Sec. 60.2-210et seq.).
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students working for work-study programs;
• Real estate and insurance salespersons;
• Student nurses;
• Hospital interns;
• Newspaper distributors that are minors;
• Casual laborers; and
• Certain part-time workers for nonprofit entities (VA Code Sec. 60.2-219).
Taxable wage base. For the current taxable wage base, visit http://www.vec.virginia.gov/employers/faqs/Employer-UI-Tax-Questions. The term “wages” includes:
• Commissions and ...

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