Virginia, Thank Your Elected Officials for Stopping Payroll Tax Increases!

Date: August 18, 2021

NFIB State Director Nicole Riley released the following statement in response to the vote.

Last month, NFIB requested your help in advocating for a dedication of federal American Rescue Plan funds to off-set what would have been a massive unemployment insurance tax on Virginia small businesses. Your efforts paid off, and we are pleased to announce that the Commonwealth has committed more than $860 million in federal funding towards replenishing the Unemployment Insurance Trust Fund!  While the General Assembly and Governor did not dedicate the $1.3 billion necessary to fully fund the Trust Fund, this deposit will significantly reduce the anticipated tax increase small businesses were facing in 2022.

 

NFIB State Director Nicole Riley released the following statement in response to the vote.

 

“We appreciate that the governor is advocating a large sum of money towards a deposit in the Unemployment Trust Fund. We’re encouraged by this news and look forward to seeing if this deposit will significantly blunt the anticipated quadruple increase in taxes small employers will have to pay in January.  Our small business owners are still recovering from this crippling pandemic. While they are finally allowed to open and operate – they can’t find qualified workers to fully open.  According to the latest NFIB survey, 46% of our small business owners have job openings they can’t fill. Our members are anxious as they look ahead – they want to know their new UI tax rates, especially in light of another impending minimum wage increase to $11 per hour this January. That increase, along with the UI tax increase could hurt our Virginia small business owners even more.”

 

Most importantly, legislators included a provision in the budget bill to ensure that “the Virginia Employment Commission shall compute tax rates for Calendar Year 2022 by excluding pandemic related claim activity.” This means that 2022 unemployment tax rates may be less than -but shall not exceed- the established rate for what businesses paid this previous year in 2021. While we are greatly appreciative of this language and funding, we must stay vigilant to ensure small businesses will not see an increase in their payroll taxes related to the pandemic business closures. 

 

We need your help in thanking members of the General Assembly who looked out for the interests of hard-working business owners by voting for this substantial investment in the Unemployment Trust Fund. Please contact your legislators by filling out the form at this link.

 

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