How is the Virginia UI tax calculated for employers?

Virginia Unemployment Insurance (UI) tax is calculated based on taxable wages paid to employees and the employer’s assigned tax rate. Key points include:

1. Taxable Wage Base: Employers pay UI tax on employee wages up to the annual taxable wage limit set by the Virginia Employment Commission (VEC).

2. Employer Tax Rate: Each employer is assigned a rate based on factors such as industry, experience, and prior claims history.

3. Quarterly Calculation: Multiply taxable wages for each employee by the employer’s tax rate to determine the UI tax due for the quarter.

Accurate calculation ensures compliance with Virginia UI law and maintains the employer’s good standing with the VEC.