Unemployment Insurance Tax (FUTA/SUTA): West Virginia
Federal law and guidance on this subject should be reviewed together with this section.
Author: Eric E. Kinder, Spilman Thomas & Battle, PLLC
- For purposes of unemployment insurance tax, West Virginia law defines employment as service performed for wages or under any hiring agreement. The ABC test is used to determine employment status. See Determining Coverage.
- Most new employers pay contributions at a rate of 2.7% of all taxable wages paid each quarter. Once an employer obtains an experience rating, higher or lower rates can be assigned. See Contribution Rates; Experience Rating Method.
- SUTA Dumping is prohibited and will result in an increased contribution rate. See SUTA Dumping.
- An employer may make additional payments to improve its reserve balance and gain a more favorable experience rate if permitted by the Commissioner of the Unemployment Compensation Division. See Voluntary Contributions.
- Two or more employers may establish joint or combined accounts under certain circumstances. See Joint or Combined Accounts.
- Employers are required to file quarterly wage and tax reports by the last day of the month following the end of each calendar quarter. Electronic filing is optional in West Virginia. See Quarterly Reporting Requirements.
- Employers are required to keep specific payroll records for SUI purposes for five years. See Recordkeeping Requirements.
- An employer's account will not be relieved of charges for benefit overpayments under certain circumstances. See Benefit Overpayments.
- Quarterly multiple worksite reporting is mandatory in West Virginia for certain employers. See Multiple Worksite Reporting.