Code of Virginia

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Code of Virginia
Title 65.2. Workers' Compensation
Chapter 10. Administrative Fund and Tax Therefor
4/15/2021

Chapter 10. Administrative Fund and Tax Therefor.

§ 65.2-1000. Tax for administrative fund.

For the purpose of paying the salaries and necessary expenses of the Workers' Compensation Commission and its assistants and employees in administering and carrying out the provisions of this title, an administrative fund shall be created and maintained in the following manner:

1. Every person, partnership, association, corporation, whether organized under the laws of this or any other state or country, company, mutual company or association, the parties to any interindemnity contract or reciprocal plan or scheme, and every other insurance carrier, insuring employers in this Commonwealth against liability for personal injuries to their employees or death caused thereby, under the provisions of this title, shall, as hereinafter provided, pay a tax upon the premiums received, whether in cash or notes, in this Commonwealth or on account of business done in this Commonwealth, for such insurance in this Commonwealth, at the rate of 2.5 percent of the amount of such premiums.

2. However, premiums received for insuring liability which exists concurrently under this title and the Federal Coal Mine Health and Safety Act of 1969, as amended, shall be modified in accordance with an equitable premium modification plan approved by the Commission. Such tax shall be in lieu of all other taxes on such premiums, except as provided in §§ 65.2-1101, 65.2-1201, and Chapter 4 (§ 38.2-400 et seq.) of Title 38.2, and shall be assessed and collected as hereinafter provided. But such insurance carriers shall be credited with all cancelled or returned premiums, actually refunded during the year on such insurance, and with premiums on reinsurance assumed.

Code 1950, § 65-120; 1968, c. 660, § 65.1-129; 1975, c. 365; 1977, c. 345; 1984, c. 606; 1991, c. 355; 1996, c. 56.

§ 65.2-1001. Returns.

A. Every such insurance carrier shall, for the twelve months ending December 31 of each year, make a return verified by the affidavits of its president and secretary, or other chief officers or agents, to the Workers' Compensation Commission stating the amount of such premiums and credits during the period covered by such return.

B. The State Corporation Commission shall have access at all times to the records so filed with the Workers' Compensation Commission by such insurance carriers and may require such additional information as the State Corporation Commission deems necessary for the performance of the duties herein conferred upon it.

Code 1950, § 65-121; 1968, c. 660, § 65.1-130; 1991, c. 355.

§ 65.2-1002. Payment of tax.

Every insurance carrier required to make such return shall file the same with the Workers' Compensation Commission within thirty days after the close of the period covered thereby and shall at the same time pay into the state treasury a tax of $2.50 on each $100 of such premiums ascertained as provided in § 65.2-1000, less returned premiums and reinsurance assumed.

Code 1950, § 65-122; 1968, c. 660, § 65.1-131; 1991, c. 355.

§ 65.2-1003. Failure to file return.

If any such insurance carrier shall fail or refuse to make the return required by this title, the State Corporation Commission shall assess the tax against such insurance carrier at the rate herein provided for, on such amount of premiums as it may deem just, and the proceedings thereon shall be the same as if the return had been made.

Code 1950, § 65-123; 1968, c. 660, § 65.1-132; 1991, c. 355.

§ 65.2-1004. Withdrawal from business or failure to pay tax.

If any such insurance carrier shall withdraw from business in this Commonwealth before the tax shall fall due, as herein provided, or shall fail or neglect to pay such tax, the Comptroller shall at once proceed to collect the same and may employ such legal process as may be necessary for that purpose, and when so collected he shall pay the same into the state treasury. The suit may be brought by the Comptroller, in his official capacity, in any court of this Commonwealth having jurisdiction. A reasonable attorney's fee may be taxed as costs therein and process may issue to any county of the Commonwealth and may be served as in civil actions, or in the case of an unincorporated association, partnership, interindemnity contract or other plan or scheme, upon any agent of the parties thereto upon whom process may be served under the laws of this Commonwealth.

Code 1950, § 65-124; 1968, c. 660, § 65.1-133; 1991, c. 355.

§ 65.2-1005. Tax exclusive of other taxes.

Any insurance carrier liable to pay a tax upon premiums under this title shall not be liable to pay any other or further tax upon such premiums, or on account thereof, under any other law of this Commonwealth, except as provided in §§ 65.2-1101, 65.2-1201, and Chapter 4 (§ 38.2-400 et seq.) of Title 38.2.

Code 1950, § 65-125; 1968, c. 660, § 65.1-134; 1975, c. 365; 1977, c. 345; 1991, c. 355; 1996, c. 56.

§ 65.2-1006. Payroll reports of self-insurers and tax thereon; withholding or providing false or misleading information.

A. Every employer carrying his own risk under the provisions of § 65.2-801 and every employer member of a licensed group self-insurance association shall, under oath, report to the Workers' Compensation Commission his payroll subject to the provisions of this title. Such report shall be made in form prescribed by the Commission and at the time herein provided for premium reports by an insurer. No person required to file this report shall willfully withhold information from or knowingly provide false or misleading information to the Commission. As used herein, the term "information" shall include any false statement made for the purpose of avoiding or diminishing the amount of payroll tax imposed pursuant to this section.

There shall be no liability on the part of and no cause of action against:

1. Any person for furnishing in good faith to the Commission information relating to the investigation of any payroll report when such information is furnished under the requirements of law or at the request or the direction of the Commission;

2. The Commission or any of the Commission's employees or agents, acting in good faith, for investigating any payroll report required to be filed under this section or for the dissemination of any official report related to an official investigation of any such payroll report.

B. The Commission shall assess against such payroll a maintenance fund tax computed by taking 2 1/2 percent: (i) of the basic premiums chargeable against the same or most similar industry or business, taken from the manual insurance rate for compensation then in force in this Commonwealth; (ii) in its discretion, of such premiums modified in accordance with an experience rating determined by the records of the Commission; (iii) in the case of self-insurers covered under the Federal Longshoremen's and Harbor Worker's Compensation Act, of such premiums chargeable under an equitable premium modification plan approved by the Commission; or (iv) in case of self-insurers who are concurrently covered by this title and the Federal Coal Mine Health and Safety Act of 1969, as amended, of such premiums chargeable under an equitable premium modification plan approved by the Commission. Such tax shall be paid as provided in § 65.2-1002 and, if not so paid, the same shall be collected by the Comptroller in the manner provided in § 65.2-1004.

C. The State Corporation Commission shall at all times have access to the reports herein required to be made to the Workers' Compensation Commission by self-insurers for the purpose of performing the duties imposed upon the State Corporation Commission under this title.

D. Any person who fails to comply with the requirements of this section or willfully withholds information from or knowingly provides false or misleading information to the Commission shall be deemed guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than $100 nor more than $1,000 or by imprisonment for not less than ten nor more than ninety days, or both such fine and imprisonment, in the discretion of the court or jury trying the case.

Code 1950, § 65-126; 1968, c. 660, § 65.1-135; 1979, c. 463; 1984, cc. 568, 606; 1991, c. 355; 1994, c. 947.

§ 65.2-1007. Disposition of fund.

Upon receiving the payments required by § 65.2-1002, the Comptroller shall place the whole thereof to the credit of the fund for the administration of this title. Such fund shall not be used for any other purpose, except as hereinafter expressly provided. The Workers' Compensation Commission shall administer the fund to carry out the provisions of this title and shall disburse the same as hereinafter directed. If the receipts shall exceed the expenditures for any year and a surplus accrue in the fund in excess of one year's budgeted expenditures, the Commission shall authorize a credit for the ensuing years as provided by § 65.2-1008. No portion of the fund or any surplus accruing therein shall be paid into the general fund of the state treasury, nor shall the fund be administered, handled or disbursed except as provided in this section. All claims for salaries or expenses, when approved by a majority of the members of the Commission, shall be presented to the Comptroller and audited by him under the provisions of Chapter 8 (§ 2.2-800 et seq.) of Title 2.2, and he shall draw his disbursement warrants therefor on the State Treasurer; however, any claim for $2,000 or less may be approved by the Chairman or his designee. All such claims shall show to whom and for what service, material or other things or reason such amounts are to be paid and shall be accompanied by voucher, checks or receipts covering the same, except as to items of less than one dollar.

Code 1950, § 65-127; 1968, c. 660, § 65.1-136; 1976, c. 603; 1980, c. 554; 1991, c. 355.

§ 65.2-1008. When fund in excess of requirement.

If it be ascertained that the tax collected exceeds the total chargeable against the maintenance fund under the provisions of this title, the Workers' Compensation Commission shall authorize a corresponding credit upon the collection for any year or make refunds of taxes collected in such amounts as are necessary to maintain a fund balance not exceeding one year's budgeted expenditures.

Code 1950, § 65-128; 1968, c. 660, § 65.1-137; 1976, c. 603; 1991, c. 355.