Extended Benefits (EB)
The Extended Benefits program provides up to thirteen additional weeks of benefits beyond the maximum twenty-six weeks provided under the Virginia Unemployment Compensation Act. Extended benefits are payable to those who exhaust their regular benefits when the insured unemployment rate equals or exceeds six percent for thirteen consecutive weeks. Virginia is reimbursed by the federal government for 50% of extended benefits paid. Employers are charged the remaining 50%. Governmental agencies, however, will be charged 100% for all weeks paid under extended benefits.
Trade Readjustment Allowances (TRA)
Workers who lose their jobs as a direct result of import competition may be eligible for special benefits under the Trade Act of 1974, as amended. Affected workers must file a “Petition for Adjustment Assistance” and be certified by the United States Department of Labor to be eligible for benefits This form may be obtained by contacting the nearest VEC Workforce Center.
Benefits include Trade Readjustment Allowances (income support payments) occupational training, job search allowances, and relocation allowances. The financial assistance provided to workers is federally funded and is not charged against the employer’s tax rate.
Disaster Unemployment Assistance (DUA)
The Disaster Relief Act of 1974 provides assistance in the form of temporary income to individuals who are unemployed as a result of a major disaster. DUA becomes available only after the President declares a specific geographic area authorized to receive federal assistance. Contact the nearest Virginia Employment Commission office to obtain more information.
An unemployment insurance claim will be filed initially, and if the claimant is monetarily qualified they will receive regular unemployment insurance benefits, which are charged to the last 30-day/240-hour employer. However, effective July 2004, benefit charges are waived if an individual who was unable to work at his regular employment due to a disaster for which the Governor, by executive order, has declared a state of emergency, if such disaster forced the closure of the employer’s business, and if the individual returned to his regular full-time employment once the business reopened. In no case shall more than four weeks of benefit charges be waived. If the claimant does not qualify monetarily for unemployment insurance, a DUA claim will be filed. DUA is paid solely from federal funds and does not affect employer tax rates.
Other Special Benefits Programs
From time to time, Congress may enact special unemployment benefits programs because of extremely high levels of unemployment nationwide. The most recent example is the Emergency Unemployment Compensation (EUC) program that became effective July 6, 2008. Usually, the federal government for such special additional benefits reimburses Virginia and the benefits are not charged to employers.
Job Seeker Services
Virginia employers save time and money on recruitment and training of new personnel when they use the VEC. The Virginia Employment Commission Workforce Centers not only serve as a job referral source to individuals seeking employment, but also assist employers in filling job vacancies.
Screening and Referral
Throughout the state, VECWorkforce Centers have job seekers registered with them who possess skills and experience in a wide variety of occupational areas. These individuals have experience in almost any area: professional, managerial, sales, service, and manufacturing, just to name a few. There are also individuals who are semi-skilled or who may be seeking their first employment opportunity.
An employer with a job opening can place an online job order through the Virginia Workforce Connection at, https://www·vawc·virginia·gov/ or directly with the nearest VEC Workforce Center (a listing is available on line) at: http://www·vec·virginia·gov/vecportal/field/field_offices·cfm. VEC staff will match the skills and experience required for that particular opening with the skills and experience of registered job seekers. After screening, the office will refer the specific number of job seekers requested that match the job requirements. This allows employers to interview only those individuals having the particular qualifications needed for the job opening.
Listing jobs with the VEC has economic impact on Virginia. Because unemployment insurance claimants are among those registered with the Job Service, their skills and experience are constantly being evaluated against listed jobs. This means that based on their qualifications, they may be referred and hired more quickly. Returning an individual to the work force reduces unemployment, helps maintain solvency in the trust fund, and reduces potential tax liability for employers.
Testing
The Job Service presently administers clerical skills tests. Clerical tests measure proficiency in regular and statistical typing; regular, medical, and legal spelling; and dictation. The use of valid tests will lead to lower training costs and fewer employee turnovers for employers.
Work Opportunity and Welfare To Work Tax Credit (WOTC)
The Small Business and Work Opportunity Act of 2007 reauthorized the Work Opportunity Tax Credit WOTC) and the Welfare-to-Work Tax Credit (WtW) for employers who hire long-term welfare recipients. Long-term recipients can earn their employer a tax credit of up to $4,000 for their first - and $5,000 for their second - year of employment. Welfare recipients and members of other target groups can earn employers a WOTC credit of up to $2400 in the first year. The number of new hires who can qualify employers for these credits is unlimited. For specific details about the benefits of this program, and the requirements for eligible employees, contact the Virginia Employment Commission (VEC) at 804-786- 1225.
Employers must apply for and receive certification from the VEC that their new hire belongs to one of nine groups of jobseekers eligible for the WOTC or WtW programs before claiming it on their federal income tax return. To apply employers need only complete two single-page forms:
IRS form 8850.This form must be mailed to the VEC no later than the 28th day after the job applicant begins work. IRS form 8850 is available at: http://www·irs·gov/pub/irs-fill/f8850·pdf .
Instructions for the form are at: http://www·irs·gov/pub/irs-pdf/i8850·pdf, or call the IRS at 1-800-829-3676.
U.S. Department of Labor form ETA 9061. Available on line at: http://www·vec·state·va·us/pdf/eta9061·pdf
DOL and IRS forms and additional information are also available at: http://www·doleta·gov/business/incentives/opptax/
To receive the form by mail, call the VECWOTC unit at 804-786-1225, or fax your request to 804-796-1285. Employers should mail the signed IRS and ETA forms to:
Virginia Employment Commission WOTC Coordinator Room 209 P.O. Box 1358 Richmond, VA 23218-1358