English Text

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.)  

What can cause a maximum base tax rate? (Non-experience rated) 

• No payroll in prior fiscal year  
  If an employer does not have any payroll in the 12-month period ending June 30th of the year prior to the computation year, a maximum base tax rate of 6.2% is assigned. 
• No taxable payroll in last four fiscal years 
  If an employer has no paid taxable payroll during the four-year period ending June 30th 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 30th prior to the computation year. 
• Foreign contractor 
  Out-of-state highway and building construction contractors are assigned the maximum base tax rate of 6.2% for a minimum of three calendar years. 
• Delinquent employer 
  Employers with delinquent taxes as of July 31st, 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.