Advertisement

Header Utility Menu

  • Subscribe
  • Advertise
  • Contact Us
  • Events

LinkedIn Facebook Twitter Instagram Get Our App

  • Login

Virginia Business

Mobile Menu

  • Issues
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Startups
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • 2022 Virginia Business Political Roundtable
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Power Up Virginia 500
    • Buy an award plaque
    • Suggest execs for 2023

Advertisement

Header Primary Menu

  • Issues
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • Issues Archive
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Startups
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • 2022 Virginia Business Political Roundtable
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Power Up Virginia 500
    • Buy an award plaque
    • Suggest execs for 2023

Home News Industries Government Va. unemployment insurance to decrease next year

Va. unemployment insurance to decrease next year

Published November 17, 2015 by Jessica Sabbath

Virginia employers next year will pay lower unemployment insurance (UI) taxes as the commonwealth’s economy improves.

The new tax rates, which were announced Tuesday by Gov. Terry McAuliffe, include the elimination of a tax that was added in 2010 to return Virginia’s unemployment insurance fund to solvency and the lowering of other rates.

Taken together, Virginia employers will save more than $74 million, or an average of $324 per individual employer in 2016, according to the governor’s office.

Employers will no longer be required to pay a “fund-builder tax” next year because Virginia’s unemployment trust fund has surpassed 50 percent solvency. 

The fund, which is used to pay unemployment benefits, is considered solvent if it can pay benefits, based on averages from the last 20 years, for 16.5 months with no revenue. In 2015, that would be $1.45 billion, and in 2015 the trust fund balance was about $852.2 million, or a solvency of 57 percent.

The fund-builder tax was 0.2 percent of an employee’s wages up to $8,000, meaning employers paid about $16 per employee who earned more than that each year.

The tax became effective in 2010 after the Great Recession when Virginia’s unemployment insurance trust fund became insolvent, and it was forced to borrow from the federal trust fund to pay unemployment claims.

In addition, the “pool tax” will be lowered from 0.14 percent to 0.07 percent. The pool tax, which is designed to recover benefit costs that cannot be assigned to an employer, rose after the Great Recession from 0.08 percent to 0.28 percent.

The pool tax, which also is based on an employee’s wages up to $8,000, is being lowered in 2015 from 0.14 percent to 0.07 percent. That will drop employers’ per-employee tax from about $11 to less than $6 per employee.

The state also is lowering the base rate, which is determined by an employer’s experience over the past four state fiscal years. An employer's “experience” is based on benefit charges to the fund and an employer’s taxable wages. The average base rate will decline from 1.44 percent in 2015 to 1.36 percent in 2016.

Related Stories

Gov. Ralph Northam speaking during April 13 news briefing

U.Va. coronavirus model sees Va. cases spiking in July, August

If stay-at-home order is lifted on June 10, most hospitals would exceed capacity this summer, researchers forecast.

386K+ remain unemployed in Va. during pandemic

Approximately 46M Americans are still jobless

Virginia Business logo

Va. Supreme Court grants eviction moratorium through Sept. 7

Move halts all proceedings for evictions, foreclosures due to pandemic

Trending

Norfolk’s MacArthur Center mall listed for sale

Making strides

Fort Monroe development moving forward

Danville lacks housing options for workforce

Members only

Sponsored Stories

What Logistics issues will have the biggest impact on you in 2023?

In the New Year, Aim for Better Cybersecurity

4 innovative ways to create capacity

WHERE IS THE SUPPLY CHAIN WHEN YOU NEED IT?

P.A.I.N.T. Your Financial Mountain

5 Benefits of Treasury Management Services from Atlantic Union Bank

Blazing trails in the digital landscape

Advertisement

Advertisement

Trending

Norfolk’s MacArthur Center mall listed for sale

Making strides

Fort Monroe development moving forward

Danville lacks housing options for workforce

Members only

Sponsored Stories

What Logistics issues will have the biggest impact on you in 2023?

In the New Year, Aim for Better Cybersecurity

4 innovative ways to create capacity

WHERE IS THE SUPPLY CHAIN WHEN YOU NEED IT?

P.A.I.N.T. Your Financial Mountain

5 Benefits of Treasury Management Services from Atlantic Union Bank

Blazing trails in the digital landscape

Get Virginia Business directly on your tablet or in your mailbox!

Subscribe to Virginia Business

Advertisement

Advertisement

Footer Primary Menu

  • virginiabusiness.com
  • Subscribe
  • Advertise
  • About Us
  • Contact Us

Footer Secondary Menu

  • Industries
  • Regions
  • Reports
  • Company News
  • Events

Sign Up For Our Newsletter

Sign Up

LinkedIn Facebook Twitter Instagram Get Our App

Privacy Policy Cookie Policy

Footer Utility Menu

Copyright © 2023 Virginia Business. All rights reserved.

Site Maintained by TechArk