Businesses could pay higher unemployment tax
- January 29, 2009
Unemployment taxes on Virginia businesses could double by next January.
A state law requires state unemployment taxes to increase when Virginia’s benefits trust fund falls below 50 percent of a $1.176 billion solvency level. Officials believe the fund could reach that point by June.
Rising unemployment claims have drained the state’s fund. State officials believe they’ll file 580,000 claims in 2009, according to The Virginian-Pilot.
The state currently pays about $88 a year per employee, but the rate is expected to jump to $155 by 2010.
Even with the higher taxes, government officials told the Pilot that the fund will likely be drained by the end of 2010, forcing the state to borrow money from the federal government. (The Virginian-Pilot)