Large employers would pay tax tied to workers’ federal benefits

The proposal would charge large employers an additional tax tied to covered federal benefits received by their Virginia workers. A large employer is one that averaged at least 500 employees on business days in the prior calendar year. Employees include full-time and part-time workers and independent contractors, including their employees. The tax would be in addition to other taxes and fees. The tax would apply for each taxable year.

Large employers would send quarterly worker rosters to the Department, which would compare them with benefit records to identify employees receiving covered benefits. The rosters cover large employers and help identify which employees receive qualified federal benefits. The Department would obtain identifying data through an agreement with the Department of Social Services. Employers would submit the rosters quarterly.

Employers would be barred from asking or otherwise seeking information about whether job applicants receive covered federal benefits. The restriction would apply when employers select or refer applicants or candidates for a job.