HB 2054 Unemployment compensation; tax rates for new employers.
Thomas M. Jackson, Jr. | all patrons    ...    notes
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Unemployment compensation; tax rates for new employers. Modifies provisions governing the tax rates applicable to employers new to the Virginia unemployment compensation program. Under current law, such employers, whether starting a new business in Virginia or moving an existing business to Virginia from another state, must pay a flat 2.5 percent rate for a period of three years. This tax is paid on the first $8,000 of payroll for each employee. After approximately one year, such employers may, on the basis of experience rating, pay more than 2.5 percent, but not less than that rate until the three-year period is completed.

This bill retains the 2.5 percent new-employer rate, but eliminates the rate's three-year duration, thereby permitting new employers to be experience-rated at the earliest possible time under current law. Under current law, the experience rate, or “computed rate” may be determined after the employee has had at least one employee covered under the act for 30 days and, thereafter, has been subject to the act for a full 12-month period commencing not later than July 1 of the year preceding the year for which a rate is to be computed. This rate will then be effective for the next tax year beginning January 1.

The bill's provisions will become effective on January 1, 1996, and will expire on January 1, 1998.

Full text:
01/23/95  House: Presented & ordered printed LD2060300  pdf
02/06/95  House: Printed as engrossed LD2060300-E  pdf
02/22/95  House: Bill text as passed House and Senate (HB2054ER)  pdf
03/22/95  Governor: Acts of Assembly Chapter text (CHAP0323)  pdf

House amendments

01/23/95  House: Presented & ordered printed LD2060300
01/23/95  House: Referred to Committee on Commerce and Labor
01/24/95  House: Assigned to L. & C. sub-committee: 1
02/05/95  House: Reported from L. & C. with amendments (15-Y 0-N)
02/05/95  House: Read first time
02/06/95  House: Read second time
02/06/95  House: Committee amendments agreed to
02/06/95  House: Engrossed by House as amended
02/06/95  House: Printed as engrossed LD2060300-E
02/07/95  House: Read third time and passed House (Block Vote) (99-Y 0-N)
02/07/95  House: VOTE: BLOCK VOTE PASSAGE (99-Y 0-N)
02/07/95  House: Communicated to Senate
02/08/95  Senate: Read first time
02/08/95  Senate: Referred to Committee on Commerce and Labor
02/13/95  Senate: Reported from Commerce and Labor (15-Y 0-N)
02/14/95  Senate: Constitutional reading dispensed (39-Y 0-N)
02/14/95  Senate: VOTE: CONST. READING DISPENSED (39-Y 0-N)
02/15/95  Senate: Read third time
02/15/95  Senate: Passed Senate (40-Y 0-N)
02/15/95  Senate: VOTE: PASSAGE (40-Y 0-N)
02/22/95  House: Bill text as passed House and Senate (HB2054ER)
03/06/95  House: Enrolled
03/06/95  Senate: Signed by President
03/07/95  House: Signed by Speaker
03/16/95  Governor: Approved by Governor-Chapter 323 (effective 1/1/96)
03/22/95  Governor: Acts of Assembly Chapter text (CHAP0323)