Unemployment Insurance Requirements & Rates

Employers must register with the Virginia Employment Commission (VEC) and pay the unemployment insurance tax if they had one or more persons employed for 20 or more weeks during the current or preceding calendar year or if they paid wages of $1,500 or more in any calendar quarter in either the current or preceding calendar year. The entire cost is paid by the employer. New employers pay a special rate for an initial period, usually 18-29 months, unless their computed rate, based on claims, exceeds the new employer rate. After the initial period, the employer's rate is based on the employer's experience (known as experience rating) and the state's unemployment experience as reflected in the financial condition of the Unemployment Compensation Trust Fund. The VEC provides a handbook that serves as a guide to employer’s rights and responsibilities under the Virginia Unemployment Compensation Act.

The following rate information is in effect for calendar year 2009. For information on other time periods, please visit
the VEC web site at www.VaEmploy.com.

• Computed Tax Rates: Minimum: 0.18 % Maximum: 6.28 %
• Assigned Tax Rate for New Employers: 2.58 %
• Pool Cost Charge: 0.08 %
• Minimum Qualifying Wages: Total of $2,700 paid in at least two quarters of the base period
• Weekly Benefit Amount: Minimum: $54 Maximum: $363