West Virginia employers pay fees for unemployment and job services

Employers pay an annual fee into the Unemployment Automation and Administration Fund. The fee applies to employers liable for unemployment contributions, except those with a zero rate. It is based on taxable wages for the 12-month period ending the previous June 30. Employers with a zero unemployment contribution rate do not pay the fee. The commissioner may lower the fee rate to keep total annual collections at $18 million or less. The fee and contribution rate reduction took effect July 1, 2026. Employers receive a fee notice by March 31 each year, and payment becomes overdue 30 days later. Fee collection ends when total collections reach $60 million or on July 1, 2031, whichever comes first; the applicable contribution rates then return.

Payments otherwise due to the automation fund go to the Unemployment Compensation Fund under specified conditions. These rules apply to money otherwise due to the Unemployment Automation and Administration Fund under this section and the employer contribution law. If the automation fund receives $18 million or more from employer contributions in a fiscal year, further employer contribution deposits to it stop for the rest of that year. If the Unemployment Compensation Fund balance falls below $300 million, payments go there until it has kept at least $300 million for two consecutive quarters or the fiscal year ends, whichever comes later. Transfers may not take place if they would violate federal requirements. The $18 million limit applies separately in each fiscal year. The low-balance redirection continues until the Unemployment Compensation Fund has held at least $300 million for two consecutive quarters or the fiscal year ends, whichever comes later.

The WorkForce West Virginia commissioner may spend the automation fund on unemployment services and workforce efforts. The commissioner administers the fund and may use it for unemployment system upgrades, job search services, essential administrative costs, and workforce development efforts. Spending is at the commissioner's discretion. Transfers may not take place if they would violate federal requirements. The fund provisions took effect July 1, 2026. Money left in the fund at the end of a fiscal year stays in the fund.