Governor Kaine has signed the following employment-related legislation into law, effective July 1:
1. Increased workers compensation tax to go to the Uninsured Employers Fund (UEF). The tax will go from .25% to .5%. This tax is paid by insurance companies (and self-insured employers), but employers should not be surprised if the increased expense to their insurance companies is passed on to them.
2. There will be a new employment poster to add to the wall. The Virginia Department of Social Services will provide a notice to employees about their possible eligibility for federal or state earned income tax credits. The IRS already publishes a similar poster, but its use is voluntary. The Virginia notice will not be voluntary.
3. Increased reporting requirements to the Virginia Division of Child Support Enforcement. Currently, employers are required to notify DCSE of the termination of a non-custodial parent. The new law will require employers to also notify DCSE of the termination of a custodial parent, if that parent was carrying the child(ren) on their health insurance plan.
4. Paying employees electronically by “loading” a debit card. This practice will no longer require the employee to sign a consent for this method of payment, but only if the employee does not provide another means of paying them electronically (namely, bank account information for direct deposit). This change will apply to any employees hired after January 1, 2010.
If you have any questions about these changes in Virginia law, please let me know.
Regards,
Charlotte
Cole James Associates, Inc. provides Human Resources services and support to small and medium sized businesses. To learn more about these services, please visit our website at www.colejamesassociates.com or call (804) 339-5576.
