~ Virginia employers to see average tax rate 0.16 percentage points lower than 2017 ~
Governor Terry McAuliffe recently announced that, thanks to a growing economy and declining unemployment rate, the average unemployment insurance tax rate paid by Virginia employers will be 0.96 percent in 2018, down from the 2017 average of 1.12 percent. This tax is the experience-related tax paid by employers to fund unemployment insurance benefits paid to eligible workers. Virginia’s unemployment insurance tax rates are among the lowest in the nation.
“This announcement is an important sign that the new Virginia economy is growing,” said Governor McAuliffe. “In the last four years, we’ve worked hard to diversify our economy, putting more Virginians to work in good-paying, 21st-century jobs. We’ve announced record capital investment in the Commonwealth, made strategic changes and investments in our education and workforce systems, and laid an important foundation for continued growth in the years to come. I am proud that the work we have done is producing real results for Virginia families and businesses.”
Employers in the Commonwealth will also see a reduction in the unemployment insurance pool costs in 2018. The pool cost charge for 2018 will be 0.01 percent, down from the 2017 cost of 0.03 percent. This reduction amounts to an average savings of $1.60 per employee for employers in Virginia.
“I’m pleased to see this decline in the unemployment insurance tax rate for 2018, a clear indicator of the success of our efforts to build the new Virginia economy,” said Secretary of Commerce and Trade Todd Haymore. “The world is taking notice of this work and subsequent results, most recently with Virginia’s jump into the top five of Forbes 2017 Best States for Business rankings. I look forward to seeing this economic growth continue over the remainder of the administration and into 2018.”
-Submitted by Assistant Communications Director Charlotte Gomer