Miscellaneous

Questions:

Answer:

General Questions

1. Looking For Employment
   General Questions #1:
   Looking For Employment:
   

   The best way to find employment whether part time or full time is to visit the Virginia Workforce Connection website.

   • The Virginia Workforce Connection is your doorway to employment and labor market information in Virginia. You will have access to new job search tools, a resume builder, employment information, wage data, occupational skill requirements, as well as industry and occupational trends. You will have access to jobs posted on numerous websites in one location.
   • You can download the state application from the link in the left menu. The application is available in either Adobe PDF, Word Perfect or Microsoft Word formats from this site.

    

   
   
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2. Wage, Work Hours/Breaks, Labor Disputes, Final Paychecks & Failure To Pay Overtime
   General Questions #2:
   Wage, Work Hours/Breaks, Labor Disputes, Final Paychecks & Failure To Pay Overtime:
   These are issues handled by the Virginia Department of Labor and Industry. You may send an email to laborlaw@doli.virginia.gov or visit their website address at http://www.doli.virginia.gov.
   
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3. Work Permits For Youth
   General Questions #3:
   Work Permits For Youth:
   Work permits are required for individuals 14 and 15 years of age. The student should contact their junior or high school's guidance counselor. The guidance counselors have all the information and permission forms that need to be signed by a parent or guardian. For further information concerning this matter, please go to the Virginia Department of Labor and Industry’s website at: http://www.doli.virginia.gov/
   
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4. Minimum Wage
   General Questions #4:
   Minimum Wage:
   

   The minimum wage is $7.25 per hour (as of July 24, 2009) and is applicable to employers of 4 or more employees. The Virginia state minimum wage law does not contain current dollar minimums. Instead the state adopts the Federal minimum wage rate by reference. For more information you may contact the Department of Labor and Industry at (804) 371-2327.

   
   
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5. Problems with State Job Application
   General Questions #5:
   Problems with State Job Application:
   The State Job Application is located on the DHRM website. If you are having any problems with the state Job Application, please contact their Webmaster.
   
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6. VEC Workforce Center Hours
   General Questions #6:
   VEC Workforce Center Hours:
   

   Workforce Centers are generally open weekdays 8:30 am till 4:30 pm. Our offices have the option to adjust hours of service based on local community and/or agency needs. It is suggested that you contact your nearest office to determine their specific hours of operation. Part-time offices have the specific days and hours of service noted with their listing on this page.

   
   
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Employer UI Tax Questions

1. What address should I mail my tax payments and reports to?
   Employer UI Tax Questions #1:
   What address should I mail my tax payments and reports to?:
   

   Virginia Employment Commission

   P O Box 1174

   Richmond VA  23218-1174

    

   Please include your VEC account# and the quarter the payment is for on the check.

    

   The payment coupon can be printed and attached if sending a check without a report.

   
   
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2. Is casual labor reportable for State Unemployment Insurance (SUI)?
   Employer UI Tax Questions #2:
   Is casual labor reportable for State Unemployment Insurance (SUI)?:
   

   Yes, all labor costs are reportable including casual labor, temporary labor, part-time labor, summer help and other types of miscellaneous labor, no matter the amount, unless they are statutorily exempt.

   
   
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3. Can I "try-out" an employee before I put them on payroll?
   Employer UI Tax Questions #3:
   Can I "try-out" an employee before I put them on payroll?:
   

   Any payment for services is reportable to the Commission.

   
   
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4. I heard that if I pay someone less than $600 they are not an employee. Is this true?
   Employer UI Tax Questions #4:
   I heard that if I pay someone less than $600 they are not an employee. Is this true?:
   

   This is not true. If someone performs a service and they are paid, they are an employee unless the Commission determines they are statutorily excluded. The employer must prove the statutory exclusion. All amounts paid for services, no matter how small, are reportable.

   
   
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5. What if the employee and I both agree that they will be treated as being self-employed?
   Employer UI Tax Questions #5:
   What if the employee and I both agree that they will be treated as being self-employed?:
   

   The relationship is determined by the statute, not by any agreement between the parties. The Commission decides if the amounts are reportable, not the employer or the employee. Unless the Commission determines otherwise, they are reportable.

   
   
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6. How does the VEC know employers are reporting incorrectly?
   Employer UI Tax Questions #6:
   How does the VEC know employers are reporting incorrectly?:
   

   We sometimes learn this when a former worker files for unemployment benefits and their wages are not recorded in our system. In addition, VEC tax representatives conduct periodic audits of employer accounts. Over 3,700 VEC audits are conducted each year. These audits reveal some employers are not reporting all workers to the Commission and are not reporting compensation correctly. Employers who exclude reportable wages may become subject to additional tax, interest, and penalties.

   
   
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7. What constitutes the "gross wages" reportable for SUI?
   Employer UI Tax Questions #7:
   What constitutes the "gross wages" reportable for SUI?:
   

   Reportable gross wages are wages after any Section 125 plan deduction but before any 401K, IRA/ SEP, or 403B7 deduction. For the most part the SUI reportable wages will be the same as the wages reportable for Medicare purposes, with some exceptions such as the imputed value of employee life insurance over $50,000. Section 125 plans (sometimes referred to as ‘cafeteria plans”) may include pre-tax deductions for health insurance, healthcare savings accounts and child care account.

   
   
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8. Who can I contact or how do I report a problem with iFile/iReg?
   Employer UI Tax Questions #8:
   Who can I contact or how do I report a problem with iFile/iReg?:
   

   If you have any comments or questions about iFile, please contact the Virginia Department of Taxation at IFile@tax.virginia.gov or (804)367-8037, or the Virginia Employment Commission at iFilevec@vec.virginia.gov or (804) 786-1082.

   
   
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9. What do I do after I register a new business?
   Employer UI Tax Questions #9:
   What do I do after I register a new business?:
   

   Be sure to file all VEC quarterly reports, from the quarter in which employment began through the current quarter, by the end of the month following the end of the quarter in which the account was established. If filed by that due date, reports for past quarters will not incur late filing penalties, although tax and interest will be charged. You can also review the Employer Services section of the website or get specific information by clicking here

   
   
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10. What is the wage base for each employee that I will pay taxes on in Virginia?
    Employer UI Tax Questions #10:
    What is the wage base for each employee that I will pay taxes on in Virginia?:
    The taxable wage base in Virginia is the first $8,000 that each employee earns per year.
    
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11. What do I do if I don't receive my employer quarterly report?
    Employer UI Tax Questions #11:
    What do I do if I don't receive my employer quarterly report?:
    You have three options:

    1. File using Ifile, our on-line filing application
    2. Contact the nearest Workforce Center and they will mail one to you.
    3. Go to the Employer Services page on this website and down load a report (VEC-FC-21/20).

    
    
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12. Do I need a Virginia Employment Commission account number? If I do, how do I get One?
    Employer UI Tax Questions #12:
    Do I need a Virginia Employment Commission account number? If I do, how do I get One?:
    

    Employers are liable for unemployment tax in Virginia if they are currently liable for Federal Unemployment Tax.   General employers are liable if they have had a quarterly payroll of $1,500 or more or have had an employee for 20 weeks or more during a calendar year. Agricultural, Domestic, and 501C3 Non-Profit employers have different thresholds for liability. Additionally, if you acquire a business that is liable at the time of the acquisition, you are liable. To register and immediately receive a VEC Account Number, go to iReg, our new online registration process. You can also contact a VEC Workforce Center or download the form VEC-FC-27 from the Employer Services page on this website.

    
    
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13. My business is not located in Virginia. I plan to expand and add a Virginia branch. I will be hiring staff to work in Virginia. Where do I report these individuals for unemployment tax purposes?
    Employer UI Tax Questions #13:
    My business is not located in Virginia. I plan to expand and add a Virginia branch. I will be hiring staff to work in Virginia. Where do I report these individuals for unemployment tax purposes?:
    

    Businesses operating in multiple jurisdictions must base their filing requirements on the “localized/non-localized” procedures that each state has. You first determine if the services being rendered are localized, contained in one state. If so, the rule is to report people where they work. That would be the case described here. If they work in multiple states you must look to where their direction and control is centered. Wages earned in Virginia are reportable to Virginia, unless they are incidental. An exception to this is if a specific reciprocal agreement is approved by the VEC and the other state.

    
    
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14. How do I compute excess wages as needed for line B2 on the quarterly tax report?
    Employer UI Tax Questions #14:
    How do I compute excess wages as needed for line B2 on the quarterly tax report?:
    

    Calculation of Taxable wages. A simple example appears below. In this example, an employer has one employee to report to Virginia. The first $8000 in wages is taxable. The employer would calculate taxable wages for the four quarters during the year as follows:

     

    Employer: ACME  Corp.	EIN: 99-9999
    	Wages Paid	Wages Paid	Wages Paid	Wages Paid
    Name/SSN	Quarter 1	Quarter 2	Quarter 3	Quarter 4
    John Smith ***-**-9999	$5,000	$12,000	$12,500	$13,000
    Calculation of Taxable wages. Tax is due on the first $8000 per year		$ 8,000  – $5000 =  $3000
    Taxable wages	$5,000	$ 3,000	$ 0	$ 0
    Tax due (5%)	$250.00	$150.00	$ 0	$ 0

     

    
    
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15. I have a domestic employee in my home. Do I need to pay unemployment tax on these wages?
    Employer UI Tax Questions #15:
    I have a domestic employee in my home. Do I need to pay unemployment tax on these wages?:
    

    This will depend on the amount of wages that you pay during a calendar quarter. You will be liable for state unemployment taxes if the total amount of wages you pay for domestic services in a calendar quarter equals or exceeds $1,000. The report and tax will be due on a quarterly basis. It should not be confused with Federal Unemployment Tax that is due annually on domestic service and filed with your 1040 return on schedule H by April 15th of each year. Domestic employers, who have a history of quarterly payrolls of less than $5,000, may be offered the option to file VEC reports on an annual basis. This will only be done if approved in advance and the employer agrees to file reports using IFile.

    
    
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16. Is there any penalty for late filing of my employer’s quarterly report?
    Employer UI Tax Questions #16:
    Is there any penalty for late filing of my employer’s quarterly report?:
    Virginia law imposes a penalty for failure to file an employer’s quarterly report timely. Beginning with the third quarter 2004 (reports filed after 11/1/04) the penalty is $75. Deadline dates for filing are April 30th, July 31st, October 31st, and January 31st. When filing for the first time this penalty is waived if your report is filed by the due date of the quarter in which your account number is assigned.
    
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17. My company has been defined as a nonprofit tax-exempt organization by the federal Government. Do we have to file unemployment taxes?
    Employer UI Tax Questions #17:
    My company has been defined as a nonprofit tax-exempt organization by the federal Government. Do we have to file unemployment taxes?:
    

    This tax exemption is for corporate income tax. It does not apply to employment taxes. Virginia law specifically exempts from unemployment taxes only nonprofits companies that have a 501 C3 federal tax exemption and have less than 4 employees for 20 weeks in the year. All other non-profit employers are required to file as is any other business Churches, however, are always exempt from UI reporting.

    
    
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18. Tax Rate: What factors determine my tax rate?
    Employer UI Tax Questions #18:
    Tax Rate: What factors determine my tax rate?:
    

    Employers receive a Base Tax Rate, dependent on their particular account history and circumstances, plus across-the-board charges that are applied to all employers, such as Pool Costs and Fund Building Charges. Detailed explanations of these tax rate components are below.

    1. Base Tax Rate
       A benefit ratio is obtained by dividing the benefit charges against an account by the state unemployment taxable wages for the last four completed fiscal years. This ratio is then applied to the Trust Fund Balance Factor to create the Base Tax Rate. (Benefit charges increase base tax rates; the Trust Fund balance accentuates the effect of the charges)
    2. Pool Cost Charge
       These charges are applied to all employers to cover benefit costs that cannot be recovered from an individual employer, such as a non-chargeable employer, an employer who has closed, or an employer for which the calculated Base Tax Rate is above the maximum.
    3. Fund Building Charge
       A charge of .2% applied to all employers when the Trust Fund balance is 50%, or less.

    
    
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19. Tax Rate: How are rates assigned?
    Employer UI Tax Questions #19:
    Tax Rate: How are rates assigned?:
    

    Rates are assigned by calendar year, based on the individual situation of the employer. New Virginia employers receive the initial base tax rate of 2.5% (plus add-ons) until eligible for a calculated rate. Others may qualify for an experience base rate or receive an assigned base tax rate.

    
    
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20. Tax Rate: I am a new employer, but I acquired a business. How is my tax rate calculated?
    Employer UI Tax Questions #20:
    Tax Rate: I am a new employer, but I acquired a business. How is my tax rate calculated?:
    

    The history and tax rate of the prior business transfers to you, unless you waive that transfer within 60 days of the date of acquisition. (Must be an arms-length transaction to waive the experience transfer as required by 60.2-536.1.) 

    
    
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21. Tax Rate: How are experience rates calculated?
    Employer UI Tax Questions #21:
    Tax Rate: How are experience rates calculated?:
    

    Existing employers can receive a base tax rate, calculated on their particular account history, if they have wages a minimum of 12 full months for the period ending June 30^th of the prior year. (In other words, have completed one full fiscal year (July 1-June 30) and have established an account prior to the rate calculation period.

     

    Experience rates are calculated by dividing the benefits charged against the account by the taxable wage amount for the period ending June 30^th of the prior year, up to four fiscal years back. This ratio is then applied to the Trust Fund factors to create a base tax.

    
    
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22. Tax Rate: What are the minimum and maximum Base Tax Rates?
    Employer UI Tax Questions #22:
    Tax Rate: What are the minimum and maximum Base Tax Rates?:
    

    Normally base tax rates vary from a minimum of .1% up to a maximum of 6.2%.

    
    
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23. Tax Rate: What can cause a maximum base tax rate? (Non-experience rated)
    Employer UI Tax Questions #23:
    Tax Rate: What can cause a maximum base tax rate? (Non-experience rated):
    

    1. No payroll in prior fiscal year? 
       If an employer does not have any payroll in the twelve-month period ending June 30^th of the year prior to the computation year, a maximum base tax rate of 6.2% is assigned.
    2. No taxable payroll in last four fiscal years?
       If an employer has no paid taxable payroll during the four-year period ending June 30^th of the prior year, they are assigned the maximum base tax rate of 6.2%. This means that the employer has not paid the tax due on the payroll on, or before, the September 30^th prior to the computation year.
    3. Foreign Contractor?
       Out-of-state highway and building construction contractors are assigned the maximum base tax rate of 6.2% for a minimum of 3 calendar years.
    4. Delinquent Employer?
       Employers with delinquent taxes as of July 31^st, who do not pay their delinquent taxes and interest within 30 days of being notified, are assigned the maximum base tax rate of 6.2% the following calendar year.

    
    
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Glossary

1. Actively seeking work
   Glossary #1:
   Actively seeking work:
   

   “Actively seeking work” means that you personally visit several employers each week in your efforts to find work. You are required to provide the VEC, when requested, with information about each employer or company you visit while seeking work. These visits are called job contacts.

   
   
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2. Base Period
   Glossary #2:
   Base Period:
   

   The base period is the first four of the last five completed calendar quarters prior to the effective date of your claim. If your claim is filed in January, February, or March 2009, your base period is October 2007 through September 2008. If your claim is filed in April, May, or June 2009, your base period is January 2008 through December 2008. If your claim is filed in July, August, or September 2009, your base period is April 2008 through March 2009. If your claim is filed in October, November, or December 2009, your base period is July 2008 through June 2009. The wages earned in the base period determine your monetary entitlement. Click here to determine your base period.

   
   
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3. PIN
   Glossary #3:
   PIN:
   

   It is your personal identification number. You must use it each time you claim your weekly benefits through the VRS. You will be asked to provide the last four digits if you make a telephone inquiry about your claim. Your PIN will be sent to you in a separate mailing after your file your claim. It is very important that you keep the number confidential and do not share it.

   
   
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4. Double dip claim
   Glossary #4:
   Double dip claim:
   

   If you drew benefits in a prior benefit year and have not worked as many as 30 days or 240 hours for one employer since the beginning of that year, you may monetarily qualify for a new benefit year, but you will not be eligible to draw those benefits until you have 30 days or 240 hours of employment and are subsequently unemployed.

   
   
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5. Eligibility Review Program
   Glossary #5:
   Eligibility Review Program:
   

   This program helps us offer you assistance in searching for work and enables us to make sure you are still meeting the eligibility requirements. When you receive an Eligibility Review Questionnaire, it is important that you complete the form and the Record of Contacts for Employment and report as scheduled to the VEC Workforce Center. Failure to do so may result in the delay of denial of your benefits.

   
   
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6. Quality Control Program
   Glossary #6:
   Quality Control Program:
   

   This program is designed to detect and correct both error and fraud in the unemployment insurance program. It is a review of the records of a sample group of claimants, selected at random, to test the accuracy of the payments they received. You will be notified to report to the VEC Workforce Center if your claim is selected for review. Failure to report may result in the delay or denial of your benefits.

   
   
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7. Overpayment
   Glossary #7:
   Overpayment:
   

   An overpayment means unemployment insurance benefits paid to and received by you to which you were not entitled. This includes amounts paid while an appeal by your former employer is pending prior to a decision being rendered against you, and amounts paid because you did not notify the VEC of information which would have reduced or eliminated your benefit entitlement. You also are required to repay any benefits that are paid to you in error.

   
   
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8. Acquisition
   Glossary #8:
   Acquisition:
   The transaction by which an individual or organization obtains the organization, trade, business, or assets of another individual or organization and, thereby, becomes subject to the Virginia Unemployment Compensation Act. §60.2-210
   
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9. Agricultural Labor
   Glossary #9:
   Agricultural Labor:
   Any services performed on a farm or in farm-related work in the handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market of any agricultural or horticultural commodity. §60.2-201
   
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10. Audit
    Glossary #10:
    Audit:
    A formal, official examination and verification of the records of an employer.
    
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11. Benefit Year
    Glossary #11:
    Benefit Year:
    The fifty-two-week period beginning with the first day of the week in which an individual files a new claim. §60.2-206
    
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12. Calendar Quarter
    Glossary #12:
    Calendar Quarter:
    The period of three consecutive calendar months ending on March 31st, June 30th, September 30th, or December 31st.
    
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13. Claimant
    Glossary #13:
    Claimant:
    An unemployed individual who files a claim for unemployment compensation.
    
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14. Corporation
    Glossary #14:
    Corporation:
    An entity formed and authorized by law to operate and conduct business in the same manner as an individual.
    
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15. Delinquent Employer
    Glossary #15:
    Delinquent Employer:
    An employer who has failed to submit required quarterly tax reports, payments, interest, and/or penalties by the due dates. §60.2-513, §60.2-538
    
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16. Duration of Benefits
    Glossary #16:
    Duration of Benefits:
    The number of total weeks of benefits a claimant may potentially draw during a benefit year. §60.2-602, §60.2-607
    
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17. Employer
    Glossary #17:
    Employer:
    An employing unit that meets the liability requirements under the law and is required to pay unemployment insurance taxes. §60.2-210
    
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18. Employing Unit
    Glossary #18:
    Employing Unit:
    Any individual, organization, or governmental entity that has one or more individuals performing services for it within the state. §60.2-211
    
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19. Employment
    Glossary #19:
    Employment:
    Any service performed by an individual for remuneration under any written or oral contract of hire with an employing unit. §60.2-212 (For references on exemptions to "employment," see Section §60.2-219.)
    
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20. Experience Rating
    Glossary #20:
    Experience Rating:
    A system used to establish employer tax rates based on past employment and unemployment experience. §60.2-530, §60.2-531
    
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21. Federal Employer Identification Number (FEIN)
    Glossary #21:
    Federal Employer Identification Number (FEIN):
    The registration number assigned by the Internal Revenue Service to an employer.
    
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22. FUTA (Federal Unemployment Tax Act)
    Glossary #22:
    FUTA (Federal Unemployment Tax Act):
    The tax imposed by the federal government on employers with respect to having individuals in their employ. §60.2-218
    
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23. Inactive Account
    Glossary #23:
    Inactive Account:
    Status assigned to an employer’s account when it has been found that the employer no longer has employees and, therefore, no payroll report or taxes to submit.
    
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24. Insolvent
    Glossary #24:
    Insolvent:
    The condition of a legal entity that is unable to pay its debts.
    
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25. Insured Employment
    Glossary #25:
    Insured Employment:
    Term used to describe employment covered by the Unemployment Compensation Act of Virginia or any other state.
    
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26. Interest
    Glossary #26:
    Interest:
    Monetary charge, which is computed and added to the amount of taxes, owed and remaining unpaid after the date such taxes were due. §60.2-519
    
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27. Last Thirty-Day Employer
    Glossary #27:
    Last Thirty-Day Employer:
    The most recent employer for whom a claimant performed services for any part of a day for thirty days, whether or not such days were consecutive, or a total of 240 hours.
    
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28. Liability Date
    Glossary #28:
    Liability Date:
    The date that an employer meets the statutory criteria for liability coverage with the Virginia Employment Commission.
    
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29. Maximum Benefit Amount
    Glossary #29:
    Maximum Benefit Amount:
    The total amount of benefits that an individual may receive during his benefit year. (This amount is determined by multiplying his weekly benefit amount and the number of weeks of benefits for which he may qualify.) §60.2-607
    
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30. Tax Report
    Glossary #30:
    Tax Report:
    The portion of the Employer’s Quarterly Report (Forms VEC FC-20/21) that states the total wages paid, the amount of taxable wages, and taxes due by the employer for the quarter covered by this report.§60.2-512
    
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31. Unemployment
    Glossary #31:
    Unemployment:
    An individual is totally "unemployed" during any week in which he performs no services and with respect to which no wages are payable to him; he is partially “unemployed” if he works less than his full-time hours and receives less wages than his weekly benefit amount. §60.2-226
    
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32. Waiting Week
    Glossary #32:
    Waiting Week:
    The first week of eligibility in a claim year is a waiting week and is not paid. Only one waiting period week is served in a benefit claim year. §60.2-612.9
    
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33. Week
    Glossary #33:
    Week:
    Seven consecutive days beginning on Sunday and ending the following Saturday at midnight. §60.2-230
    
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34. Weekly Benefit Amount (WBA)
    Glossary #34:
    Weekly Benefit Amount (WBA):
    The weekly benefits payable to a totally unemployed individual. The amount is based on prior earnings. §60.2-602
    
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35. Suitable work
    Glossary #35:
    Suitable work:
    

    Many factors are taken into consideration in determining whether work is suitable. These factors include your previous work experience, your physical and mental fitness, risk to your health, safety, or morals, and the distance from your home. You must report all job offers that you decline when you file your weekly claim for benefits.

    
    
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36. Reemployment Assistance
    Glossary #36:
    Reemployment Assistance:
    

    Your claim will be reviewed to determine if you may need special reemployment assistance to make a successful transition to new employment. If you meet the federally mandated criteria, you will be referred to this assistance. If you are referred, you will be required to attend as a condition of eligibility to receive weekly benefits. If you refuse to or do not attend without justifiable cause, you may be denied benefits.

    
    
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37. Extended Benefits (EB)
    Glossary #37:
    Extended Benefits (EB):
    

    Unemployment benefits paid to a claimant after regular benefits have been exhausted, during periods of prescribed high national or state unemployment levels. §60.2-610, §60.2-611

    
    
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