Unemployment Insurance Law Summaries
Virginia, Unemployment Insurance Law Summaries
Virginia's unemployment insurance law is located in Title 60.2, Code of Virginia, Secs. 60.2-100 to 60.2-635, as amended; and in the Regulations and Rules of the Virginia Unemployment Compensation Law, Rules VR 300-01-1 to VR 300-01-8. The full text of the law is available at Unemployment Insurance UI-VA ¶4201 .
DEFINITIONS
“Employer” means payment of $1,500 or more in any calendar quarter in either the current or preceding calendar year, or employment of at least one individual for some portion of a day in each of 20 weeks in either the current or preceding calendar year. Generally, an employer subject to the FUTA is automatically an employer under the Virginia law.
“Employment:” Service performed for remuneration or under any contract of hire, written or oral, with certain exceptions listed below. Certain services performed on American vessels or American aircraft are covered.
Service performed for remuneration constitutes “employment” unless:
the individual is free from control or direction; and
such service is either outside usual course of employer's business, or is performed outside all places of employer's business; or such individual is engaged in an independently established trade or business.
Generally, employment subject to the FUTA is automatically subject to the Virginia law.
The Virginia law does not contain a definition of “employee.”
“Wages:” All remuneration “payable” for personal services, including commissions, bonuses, the cash value of all remuneration in any medium other than cash, all tips, dismissal or severance pay or any payments made to an employee at the time of or not more than 30 days after a separation from employment, and back pay.
The term “wages” does not include:
Remuneration over $8,000 “payable” during a calendar year to an individual by an employer with respect to employment, counting remuneration by the employer's predecessor and for service in another state. Other exceptions to wages are listed below.
COVERAGE
Generally, employment subject to the FUTA is automatically subject to the Virginia law. Covered employment means service performed for remuneration or under any contract of hire, written or oral, with certain exceptions listed below. Certain services performed on American vessels or American aircraft are covered.
Service performed for remuneration constitutes “employment” unless:
the individual is free from control or direction; and
such service is either outside usual course of employer's business, or is performed outside all places of employer's business; or such individual is engaged in an independently established trade or business.
Agricultural and domestic employers.- Services performed in agricultural labor for an employer who employs 10 or more workers in such services in 20 weeks in either current or preceding calendar year or pays cash remuneration of $20,000 or more for such services in any quarter of the current or preceding calendar year, are covered. Service performed by certain aliens is excluded. However, services performed and wages received by such alien workers after January 1, 1980, are counted in determining whether an employer is subject to the tax for its other farmworkers. When agricultural labor is supplied by a crew leader, the employing unit for which the services are performed is the employer of the crew members unless the crew leader is registered under the Farm Labor Contractor Registration Act of 1963, or substantially all of the crew members operate or maintain certain equipment that is provided by the crew leader. In either of these instances, the crew leader is the employer (Sec. 60.2-214).
Domestic service.- Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed for a person who paid cash remuneration of $1,000 or more for such service in any quarter of the current or preceding calendar year.
Domestic service does not include any medical services performed by personnel such as a nurse, nurse's aide, private nurse, practical nurse, student nurse or attendant rendering medical services in a private residence or a medical institution where such personnel are employed by the person receiving the services.
Government and nonprofit employers.- Mandatory coverage is required for certain nonprofit organizations exempt from income tax who employ four or more individuals for some portion of a day in each of 20 weeks within either the current or preceding calendar year. Mandatory coverage is required with respect to services performed for the state and political subdivisions of the state.
Nonprofit organizations may finance the payment of benefits by either the regular contributions or reimbursement method. All covered state employees may also finance benefits by either regular contributions or payments in lieu of contributions.
Under reimbursement financing, employers have a choice of the following:
payments equal to the full amount of regular benefits plus
the extended benefits paid to claimants, or
a variable percentage based on total payroll.
Under (b), employers are subject to an adjustment to reflect actual benefit costs. Bills must be paid no later than 30 days after mailing. A surety bond or deposit of money or securities may be required from nonprofit organizations using reimbursement financing.
EXCEPTIONS
Wages.- The term “wages” does not include:
Remuneration over $8,000 “payable” during a calendar year to an individual by an employer with respect to employment, counting remuneration by the employer's predecessor and for service in another state.
Payment to, or on behalf of, employees or their dependents under plan or system established by employer on account of retirement, sickness, accident disability (received under a workers' compensation law), medical and hospitalization expenses, or death.
Payments for sickness or accident disability made over six months after separation.
Noncash remuneration for service not in course of employer's trade or business.
Stand-by pay to employee 65 or over.
Payment of employees' FICA tax without deduction from wages.
Unemployment benefits under any private plan financed, in whole or part, by employer.
Employment.- The term “employment” does not include the following:
Aircraft workers on or in connection with non-American aircraft if so employed when outside the U.S.
Services performed by a “contract carrier courier driver, ” provided there is evidence that he or she is excluded from taxation by the FUTA.
Service not in the course of employer's trade or business, if cash wages are less than $50 a quarter and employee works on less than 24 days in that or preceding quarter.
Services as a cosmetologist or barber if there is evidence that the individual is excluded under the FUTA.
Services performed as a court reporter for an employing unit if all such services are performed for remuneration solely by way of commission.
Fishing and farming of fish, crustacea, seaweeds and other aquatic forms of animal and vegetable life, except (a) salmon and halibut fishing for commercial purposes, and (b) service on vessels of more than 10 net tons engaged in such activities.
Insurance agents wholly on commission basis.
Interns in employ of hospital who have completed four-year course in state-chartered or approved medical school.
Maritime workers on or in connection with non-American vessels if so employed when outside the U.S.
Newspaper and shopping news carriers under 18.
Petroleum product wholesale distributors wholly on commission basis.
Railroad employees covered by Railroad Unemployment Insurance Act.
Real estate salespersons or appraisers wholly on commission basis.
Relatives, i.e., service performed by individual in employ of son, daughter, or spouse, or by child under 21 in employ of parent.
Service covered by federal unemployment compensation system.
Student nurses in employ of hospital or training school who are attending state-chartered or approved training school.
Service, performed in any calendar quarter, that is exempt from income tax under Sec. 501(a) or 521 of the internal revenue code (with exceptions described in Sec. 401(a)), if the remuneration is less than $50.
Service performed in the employ of a school, college, or university performed by a student in regular attendance.
Service by student enrolled at a nonprofit or public educational institution in a full-time work study program. Exemption not applicable if program established for employer or group of employers.
Service for a hospital by a patient of the hospital.
Services performed by a direct seller engaged in selling or soliciting the sale of consumer products to a buyer on a buy-sell or similar basis for resale in the home or other than in a retail establishment, if remuneration for his or her services is directly related to sales or output and there is a contract providing that he or she will not be treated as an employee for federal tax purposes.
Services performed as a taxicab driver or as a driver of an executive sedan, if there is evidence that the individual is excluded from federal unemployment taxes.
Services by an owner-operator or lessee of a vehicle that is licensed and registered as a truck, tractor, or truck-tractor by a governmental motor vehicle regulatory agency, if the individual owns or is responsible for the equipment or holds it under a bona fide lease arrangement, bears the principal burdens of the operating costs, is responsible for supplying the necessary personal services to operate the equipment, is compensated based on factors related to the work performed and not on the basis of the hours worked, determines the details and means of performing the services, and enters into a contract which specifies that the relationship is that of an independent contractor and not an employee.
Individuals employed on a boat engaged in catching fish or other aquatic animal life under an arrangement with the boat operator or owner under which the individual receives a share of the boat's catch or a share of the proceeds of such catch, but only if the operating crew of the boat is normally made up of fewer than 10 individuals.
Services performed by a full-time student for an organized camp if the camp did not operate for more than seven months in the current or preceding calendar year or had average gross receipts for any six months in the preceding calendar year that were no more than 33 1/3% of its average gross receipts for the other six months and the student performed services for the camp for fewer than 13 calendar weeks in the year.
Services performed by a licensed clinical social worker, licensed psychiatrist, licensed professional counselor or licensed psychiatrist.
Agricultural and domestic employers.- Services performed by certain aliens is excluded. However, services performed and wages received by such alien workers after January 1, 1980, are counted in determining whether an employer is subject to the tax for its other farmworkers (Sec. 60.2-214).
Domestic service.- Domestic service does not include any medical services performed by personnel such as a nurse, nurse's aide, private nurse, practical nurse, student nurse or attendant rendering medical services in a private residence or a medical institution where such personnel are employed by the person receiving the services.
Government and nonprofit employers.- Mandatory coverage is required for certain nonprofit organizations exempt from income tax who employ four or more individuals for some portion of a day in each of 20 weeks within either the current or preceding calendar year. Mandatory coverage is required with respect to services performed for the state and political subdivisions of the state.
Service for nonprofit organizations and the state do not include the following:
Church or organization operated primarily for religious purposes and which is controlled by a church.
Minister or member of a religious order.
Patients performing services in a rehabilitation facility or sheltered workshop.
Individual receiving unemployment work-relief or work-training under program financed by federal agency, or agency of a state or political subdivision, including public service employees under CETA.
Inmate of a custodial or penal institution.
State elected official.
Members of a legislative body or the judiciary.
Members of the State National Guard or Air National Guard.
Temporary employees serving in case of fire, storm, snow, earthquake, flood or similar emergency.
Individuals in major nontenured policymaking or advisory positions, or policymaking or advisory positions that ordinarily do not require more than eight hours per week.
Individual providing services pursuant to an agreement among the service recipient, a public Human Services Agency and such individual to provide such services to an eligible service recipient in his or her own home or the home of the service provider.
PROCEDURES
Base period.- First four out of the last five completed calendar quarters immediately preceding individual's benefit year. However, if the claimant has earned insufficient wages in the first four of the last five completed calendar quarters to become eligible for benefits, then the claimant's “base period” will be the four most recently preceding the first day of his or her benefit year.
Benefit year.- 52-week period beginning with day first valid claim for benefits filed, except that benefit year is 53 weeks if filing of new valid claim would result in overlapping any quarter of the base period of previously filed claim.
Weekly benefit amount.- Maximum weekly benefit amount increases to $378 beginning 7/6/2008. Minimum is $54. Dependent on highest two-quarter base-period earnings less any wages exceeding one-third of the weekly benefit amount or $50, whichever is higher, computed to next lower multiple of $1.
Although benefits are not assignable, claimants may elect to have income taxes voluntarily withheld from their unemployment compensation payments. Note that, deductions may be made to satisfy food stamp overissuances and child support obligations.
Maximum total benefits.- 12 to 26 times w.b.a., depending upon individual's base-period earnings. Plus, during certain periods of high unemployment, payment of extended benefits at claimant's weekly benefit rate.
Benefit eligibility: Requirements-
Able and available for work and actively seeking and unable to find work;
$2,500 to $16,300.01 in highest two quarters in base-period wages, depending on weekly benefit amount, such wages to be earned in not less than two quarters;
serve one-week waiting period; and
participate in reemployment services if required. Note, however, that the one-week waiting period requirement will be waived for any individual whose unemployment occurred because the employer terminated its operations, closed its business or declared bankruptcy without paying the individual his or her final wages within the time period prescribed by law. Moreover, if such an employer pays an individual after the prescribed time period, that payment will not be offset against the benefits he or she was otherwise entitled to receive and will not, under any circumstances, be considered overpaid benefits.
Claimant is ineligible if he or she
is on a bona fide paid vacation,
is a seasonal worker and it is not the operating season determined for the base-period seasonal employer,
has payable to him or her certain retirement payments (50% decrease only for Social Security and Railroad Retirement Act benefits, under some circumstances) equal to or in excess of the weekly benefit (such payments are deducted as “wages” if less than the weekly benefit).
In addition, a claimant is not eligible for benefits if his or her unemployment is due to a labor dispute, as defined in the law, and to shutdown or start-up operations caused by the dispute.
An individual who leaves his or her normal labor market area for the major portion of a week is presumed unavailable for that week unless the individual establishes to the Commission's satisfaction that he or she has conducted a bona fide search for work in the labor market area in which he or she spent the major portion of the week.
However, an individual whose type of work is such that it is performed by working two or more shifts in a 24-hour period will not be considered unavailable for work if he or she is currently enrolled in one or more education classes related to employment or is continuing in a certificate or degree program at an institution of higher education. Note that the enrollment may only limit the individual's availability for one shift and he or she must otherwise be available to work any other shifts.
An individual whose usual and customary means of soliciting work in his or her occupation is through contact with a single hiring hall that makes contacts with multiple employers on behalf of the individual meets the actively seeking work requirement.
An individual is eligible if he or she has given notice of resignation to his or her employer and the employer subsequently makes the termination effective immediately, but in no case to exceed two weeks for which he or she would have worked had the employee separated on the date of termination as given in the notice, provided that the employee could not establish good cause for leaving and was not discharged for misconduct.
An individual is eligible only if he or she is not imprisoned or confined in jail.
Notwithstanding the availability requirement and the disqualification for refusal of suitable work without good cause, no benefits may be denied to claimant in approved training. Benefits may not be paid unless, in the immediately preceding benefit year during which a claimant received benefits, he or she performed service for remuneration for 30 days or 240 hours (Sec. 60.2-614).
Benefits are not payable to instructors, researchers, and certain administrators of any educational institution during school vacation periods or paid sabbatical leaves if the individual has a contract to return or there is reasonable assurance that he or she will return to work.
Benefits are not payable to nonprofessional school employees during periods between school years or terms if there is a reasonable assurance that the individual will perform services in the second year or term. Retroactive payment of benefits may be claimed if, after being given reasonable assurance of reemployment, the individual is not offered an opportunity to work in the second year or term.
There is a similar disqualification of school employees during vacation periods and holiday recesses, and for individuals performing services in an educational institution while in the employ of an educational service agency.
Benefits are not payable based on services by athletes for any period between sport seasons or similar periods if the individual performs services in the first of such seasons and there is reasonable assurance that he or she will return for the second.
Benefits are not payable to an alien unless he or she has been lawfully admitted for permanent residence or is otherwise permanently residing in the United States under color of law.
Disqualifications-Period.- Voluntary leaving without good cause, discharge for misconduct connected with work, refusal of suitable work without good cause -disqualification applies until claimant has performed services for 30 days or 240 hours for an employer and subsequently becomes totally or partially separated from such employer. An individual will not be considered to have voluntarily left work solely because the separation was in accordance with a seniority-based policy (Sec. 60.2-618).
Receipt or seeking of unemployment benefits under another state or federal law-period for which payment received or sought. Disqualification not applicable if held not entitled to such other benefits.
Receipt of benefits to which not entitled-at discretion of Commission, benefits must either be repaid or deducted from future benefits. Repayment may also be required where claimant receives back pay upon reinstatement. Claimant convicted of fraud may not receive benefits for one year after date of offense.
False statement or representation to obtain or increase any benefit-52 weeks beginning with date of determination or decision (Sec. 60.2-618).
Any governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment based on an individual's previous employment, made from a plan maintained or contributed to by a base period or chargeable employer, will be deducted from the weekly benefit amount.
Imprisonment or confinement in jail-if separation arose as a result of an unlawful act that resulted in a conviction and after release from prison or jail and until the claimant has performed services for 30 days or 240 hours and subsequently becomes totally or partially separated from employment (Sec. 60.2-618).
Confirmed positive test for a nonprescribed controlled substance, in connection with an offer of suitable work, if the test is required as a condition of employment-week in which the test was conducted and continuing until the individual has performed services for an employer during 30 days or 240 hours and subsequently becomes totally or partially separated from the employment (Sec. 60.2-618).
An employee's intentionally false or misleading statement of a material nature concerning past criminal convictions made in a written job application furnished to the employer, if such statement was a basis for the termination and the employer terminated the employee promptly upon the discovery thereof. Mitigating circumstances may be considered, however.
WHAT THE EMPLOYER MUST DO
Pay the standard rate.- 6.2%. Basic rate for new employers is 2.5%, except that at such time as it is eligible for computed rates, its rate is the computed rate if higher than 2.5%. Maximum basic rate is 6.28%. Minimum is 0.0%. No employee rate. For 2009, new employers pay 2.58% and out-of-state contractors of buildings and/or roads pay 6.28%. Both rates include the 0.08% pool cost charge. The fund building charge is not in effect this year.
Experience rates.- Employer's rate for calendar year may be computed according to experience-rating provisions if it has had benefit chargeability throughout a 12-month period ending on the preceding June 30. Newly subject employers pay 2.5%, plus the applicable fund building factor and pool cost charge rate until eligible for a rate as provided above. An employer's rate, as determined by correlation of its benefit ratio and the fund balance factor, may be as low as 0.0% or as high as 6.2%. These rates are subject to increase due to the addition of a fund building factor and a pool cost charge rate.
If the Fund Balance Factor is 50% or less for a year, a 0.2% fund building tax will be added to each employer's basic rate. In addition, “pool cost charges” will be added to all rates. Pool costs will consist of benefit charges that cannot be assigned to individual employers and the difference between the benefit charges of all employers paying the maximum rate and the amount of contributions collected as the result of applying the maximum rate against their payrolls. The pool cost charge rate is the percentage obtained by dividing pool costs by payrolls for the 36-consecutive-month period ending on June 30 immediately preceding the rate year. When the Fund Balance Factor for the most recent 12-month period ending on June 30 of the immediately preceding calendar year is greater than 50%, interest earned on the trust fund balance will be subtracted from pool costs, except that in no instance may pool costs be less than zero.
Benefit ratio.- The benefit ratio for most employers is determined as the percentage obtained by dividing the employer's benefit charges for the preceding fiscal year by its total payroll for the same period. If benefit charges are not available for any or all of the periods used to determine an employer's benefit ratio, benefit wages divided by three will be used in lieu of benefit charges for those periods, in combination with benefit charges where available. A claimant's benefit charges for a week are equal to the amount of benefits he or she received for that week.
Fund Balance Factor.- The schedule of rates that will be in effect for a year will be determined by the Fund Balance Factor, which is the percentage determined by comparing the trust fund balance with the “adequate balance.” The “adequate balance” for the trust fund is determined as of July 1 of each year as follows: for the 20-year period ending on July 1 of the year of determination, the highest ratios of benefits divided by total wages for three separate consecutive four-quarter periods will be averaged and multiplied by 1.38 to determine the fund adequacy multiplier. The fund adequacy multiplier is multiplied by the total wages for the year in question to determine the “adequate balance” for the next rate year.
For 2009, the fund balance factor is 60% (under the law, a fund balance factor may not be less than 50%; rates for 2009 are determined under a fund balance factor of 60%), and there is a pool cost charge of 0.08% and a fund building charge of 0.0%. .
The following table shows the schedule of rates for 2009, including both the pool cost charge and the fund building charge. If the employer's benefit ratio is the figure in Column (A), its rate will be the figure appearing in Column (B).
(A) Employer's
Benefit Ratio
|
(B) 2007
Rate (%)
|
|---|
00.0
|
0.10
|
00.1
|
0.14
|
00.2
|
0.28
|
00.3
|
0.42
|
00.4
|
0.56
|
00.5
|
0.70
|
00.6
|
0.84
|
00.7
|
0.98
|
00.8
|
1.12
|
00.9
|
1.26
|
01.0
|
1.40
|
01.1
|
1.54
|
01.2
|
1.68
|
01.3
|
1.82
|
01.4
|
1.96
|
01.5
|
2.10
|
01.6
|
2.24
|
01.7
|
2.38
|
01.8
|
2.52
|
01.9
|
2.66
|
02.0
|
2.80
|
02.1
|
2.94
|
02.2
|
3.08
|
02.3
|
3.22
|
02.4
|
3.36
|
02.5
|
3.50
|
02.6
|
3.64
|
02.7
|
3.78
|
02.8
|
3.92
|
02.9
|
4.06
|
03.0
|
4.20
|
03.1
|
4.34
|
03.2
|
4.48
|
03.3
|
4.62
|
03.4
|
4.76
|
03.5
|
4.90
|
03.6
|
5.04
|
03.7
|
5.18
|
03.8
|
5.32
|
03.9
|
5.46
|
04.0
|
5.60
|
04.1
|
5.74
|
04.2
|
5.88
|
04.3
|
6.02
|
04.4
|
6.16
|
04.5 and over
|
6.20
|
Delinquency in paying taxes requires an employer to pay a basic rate of 6.2% for the next rate year.
SUTA dumping.- If an employer transfers any trade or business to another employer where, at the time of transfer, there is substantially common ownership, management, or control of the trade or business, then the unemployment experience attributable to the transferred business will also be transferred to, and combined with the unemployment experience attributable to, the employer to whom the business is transferred. If the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate, that employer will be subject to penalties.
Similarly, if an employer transfers any trade or business to a person who is not an employer at the time of the transfer, and the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate, the unemployment experience of the acquired business will not be transferred to that person; instead, the person will be assigned the higher of the transferred business’ calculated rate or the new employer rate.
In order to determine whether a business was transferred solely or primarily to obtain a lower unemployment tax rate, the Commission must consider the facts and circumstances of the transfer, including: (1) the cost of acquiring the business, (2) how long the business was continued, and (3) whether a substantial number of new employees was hired to perform duties unrelated to the business activity conducted prior to the transfer.
DEADLINES
Tax.- Employer's Quarterly Payroll and Tax Report, Form VEC-FC-20, is due quarterly on or before last day of the following month, except for state employers and nonprofit organizations electing reimbursement financing. If due date falls on Saturday, Sunday or legal holiday, report may be filed on following business day. Report postmarked on or before due date is deemed timely filed. Employers must pay a $30 penalty for late filing. Employers operating in more than one location within the state must file Form VEC-RA-FC-20A, Multiple Worksite Report, with the tax report.
Wage.- Detailed quarterly wage reports are also required on Form VEC-FC-20, which is due quarterly on or before the last day of month following covered quarter.
Low earnings.- Employers will receive Form VEC-B-32, Notification of Claim Filed for Benefits, which instructs the employer in completing Form VEC-B-31, Statement of Partial Unemployment. Employers must furnish worker with Form VEC-B-31 within seven days after receipt of Form VEC-B-32, and thereafter, within 14 days after each pay period, covering weeks in which worker earns less than the weekly benefit amount because of lack of work. The worker must file a claim within 14 days after the date of delivery of the notice.
ENFORCEMENT
The Virginia Unemployment Compensation Act is administered by the Virginia Employment Commission.
If, after due notice, an employer defaults in a contribution payment, or interest and/or penalty thereon, the amount may be collected by civil action in the name of the commission. Employers adjudged in default must pay the costs of such actions. These civil actions may be brought against any officer, employee, or agent of a corporation or partnership in his or her individual, personal capacity, if such person willfully fails to cause the employer to pay appropriate taxes when he or she had the authority to do so. No person is subject to this provision, however, unless it is proved that that person had knowledge of the failure to pay taxes and had authority to prevent such failure. The commission is authorized to compromise, settle and adjust any tax or taxes, including interest and/or penalties, where in the judgment of the commission the best interests of the state will be served thereby (Sec. 60.2-521). The commission may be represented in civil actions by the Attorney General, who has the authority to enforce judgments for taxes due and to collect benefit overpayments for this state and other states (Sec. 60.2-118).
If an employer against whom judgment has been obtained continues in default of payment of contributions, that employer may be enjoined from doing business in Virginia until such contributions are paid. The Circuit Court of the City of Richmond has exclusive original jurisdiction to grant such injunction (Sec. 60.2-522).
Judicial review of determinations by the commission involving the status of an employing unit may be had within 30 days after the mailing or delivery of notice in the Circuit Court of the City of Richmond (Sec. 60.2-500).
Suits or proceedings for the purpose of establishing liability for contributions may not be commenced with respect to any period occurring more than three years prior to January 1 of the year within which such suit or proceeding is instituted. However, this provision does not apply if an attempt has been made to defeat or evade the payment of any contributions. A proceeding is deemed to have been instituted or begun upon the date on which the commission orders a hearing to be held to determine the liability or nonliability of an employing unit, or upon the date on which notice of the establishment of liability is mailed to the last known address of the employing unit (Sec. 60.2-514).
Records.- The commission may require from any employing unit any sworn or unsworn reports, with respect to persons employed by it, which the commission deems necessary for the effective administration of Virginia's unemployment compensation law. Information so obtained will not be published or open to public inspection, but benefit claimants are to be supplied with any information necessary for proper presentation of their claims (Sec. 60.2-114).
WHO TO CONTACT
The Virginia Unemployment Compensation Act is administered by the Virginia Employment Commission, 703 E. Main St., P.O. Box 1358, Richmond, Virginia 23218-1358; Telephone 1-800-242-4654 (in Virginia) and (804) 786-1485 (out-of-state).
RECORDKEEPING
Every employing unit is required to keep for four years true and accurate work records containing whatever information the Commission may prescribe. These records are to be open to the inspection of the Commission or any of its authorized agents. They, in turn, must keep confidential any information obtained from such records. However, any claimant shall be supplied with information from such records to the extent necessary for the proper presentation of that individual's claim (Sec. 60.2-114(A)).
POSTING
Each employer must post and maintain in places readily accessible to individuals in its service all posters related to unemployment insurance that are furnished by the Virginia Employment Commission (Sec. 60.2-106).
PENALTIES
Interest and penalties.- Contributions unpaid on the due date bear interest at the rate of 1.5% per month from and after such date until payment and accrued interest are received by the Virginia Employment Commission (Sec. 60.2-519). However, no interest will be assessed against or collected on contributions that accrued while the employer was actively serving in the armed forces (Sec. 60.2-520).
Any false statement or representation or nondisclosure made knowingly to reduce any contribution payment, to avoid becoming subject to the Act, or to reduce a benefit payment, or any willful failure or refusal to make any report required, is punishable as a misdemeanor, as are all other violations of the Act or regulations (Secs. 60.2-121 and 60.2-518).
Employers who finance benefits by the reimbursement method and whose payments are past due are subject to the same interest charges and penalties applicable to employers whose contributions are past due (Sec. 60.2-501).
If an employer had wages payable for the quarter and fails to file any report as required with respect to wages or contributions, it will be assessed a penalty of $30 in addition to the amount of taxes due and payable (Sec. 60.2-513).
Any check submitted for payment of taxes due that is dishonored by the payer will bear a bad check charge of $25, which will be paid into the Special Unemployment Compensation Administration Fund (Sec. 60.2-519.1).
If on July 31 of any year, taxes or interest and/or penalties due for any previous quarter are delinquent and unpaid for 90 days or more, the Commission may issue a notice of delinquency demanding payment. If this amount is not paid within 30 days, the delinquent employer will pay the maximum 6.2% rate for the calendar year immediately following the year in which the notice is sent (Sec. 60.2-538).
The purchaser or successor to the business of an employer who owes taxes, interest or penalties will be personally liable for such taxes if the predecessor fails to pay them when due, unless purchase money due the predecessor in consideration of the lease or other transfer is withheld to cover the amount of taxes due (Sec. 60.2-523).
Whenever the purchaser or successor of an employer files with the Virginia Employment Commission a written request for a statement showing the amount of any tax due by that employer, unless such statement is furnished to the purchaser or successor within 90 days from the date the written request was filed, the purchaser or successor will not be liable for any tax or taxes due by the employer, and the lien created in accordance with this provision shall be released and discharged (Sec. 60.2-523).
Bankruptcy.- In the event of a distribution of an employer's assets, taxes, interest and penalties then or thereafter due are a lien against such assets, prior to all claims of lien and general creditors, except prior liens of the state or mortgages, deeds of trust or other liens perfected prior to the date the contributions first accrued. In the case of contributions accruing by reason of employment for an employer who is a receiver, trustee, or other fiduciary, such contributions are a lien against all the assets in the custody or control of such receiver, trustee, or other fiduciary, prior and paramount to all other claims of lien and general creditors (Sec. 60.2-523).
<p>Bankruptcy.— In the event of a distribution of an employer's assets, taxes, interest and penalties then or thereafter due are a lien against such assets, prior </p>
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