How to File Unemployment Taxes in Virginia as an Employer
Filing unemployment tax in Virginia is an important aspect of being a business owner. Employers must complete unemployment tax filing in Virginia on a quarterly basis to help fund the workforce agencies that protect employees against job loss. This unemployment employer taxes guide will help business owners to understand the unemployment tax rate as well as the methods for filing. Many business owners wonder, “Do employers have to pay unemployment taxes in Virginia?” To find the answer to this question and more involving filling taxes unemployed claims and the penalties for not fulfilling employer responsibilities, continue reading the sections below.
What is the unemployment tax in Virginia?
An unemployment tax in Virginia is a mandatory tax paid by business owners to the federal government for all eligible employees. Unemployment tax filing is necessary even for small business owners with a minimal amount of employees. When employers are regularly filing taxes, unemployed workers within the company are covered in case they valid unemployment claims through the state. An employer will need to pay his or her unemployment tax rate on a quarterly basis to cover his or her employees.
The question often arises whether or not employers have to pay unemployment taxes in Virginia when an employee only works part-time. The unemployment tax rate includes a wage base, which means that the initial wages up to a specific earning will be taxable even if an employer has only one employee. An unemployment tax rate will be assigned to each employer based on specific situations. For instance, factors that can contribute to an unemployment tax rate include account history, employment circumstances as well as other costs and building charges.
To find out more information regarding unemployment tax in Virginia, download our helpful guide today.
What are the different ways to file unemployment tax in Virginia?
Unemployment tax filing in Virginia is available in two ways: online or by printing and mailing the necessary documentation. Many employers wonder how to file unemployment taxes online, as the web option seems to be the simplest way to file unemployment tax. To file unemployment taxes online, employers must have less than a certain number of employees. For employers who have a larger number of employees, they may use a different option that goes directly to the Virginia Employment Commission (VEC). Employers pursuing unemployment tax filing in Virginia can also print and mail the necessary documentation to the VEC directly.
Online unemployment tax filing is the most straightforward option for employers. Filing unemployment tax online requires enrollment as a new user as well as the necessary account number that is provided by the VEC to a new business. The online services for unemployment tax allow an employer to retrieve necessary unemployment tax information while simultaneously offering web uploads and the option to pay taxes all in place.
To find out the steps to file unemployment tax in Virginia through each option, download our unemployment employer taxes guide today.
Consequences for Not Completing Unemployment Tax Filing in Virginia
Employers who fail to pay unemployment tax in Virginia in a timely manner will be subject to penalties by the Virginia Employment Commission. Unemployment tax filing in Virginia is required to be completed on a quarterly basis, and a penalty for failure to file or late filing will be assessed accordingly. Any late filing or failure to file will result in a minimum cash penalty. If filing unemployment tax for the first time, then a penalty may be waived as long as the employer files by the due date of the quarter in which the account number was assigned. To avoid unnecessary tax penalties for unemployment, employers should be aware of the quarterly filing dates for his or her business. If an employer does not have wages to report for a specific quarter, then the response “none” must be filed with the Virginia Employment Commission. It is best practice to avoid not filing all, even when there have not been any changes or any employees to report. Other consequences for failure to pay unemployment tax in Virginia include audits by the VEC. Employers can be audited by VEC, which can be time-consuming and even become costly for business. Employers should maintain strict records and wages for every employee in case proof of unemployment tax in Virginia is necessary.