Chapter 42. Combined Employer Accounts
16VAC5-42-10. Group accounts for employers.
A. All applications for the establishment of a group account pursuant to the provisions of § 60.2-505 of the Code of Virginia shall show:
1. The name, address, and established account number of member employing units;
2. The name and address of the authorized group representative;
3. The signature of an authorized representative of each employing unit;
4. An authorization for the representative named by the group to act for the group.
B. Approval of an application for a group account shall be contingent upon the active employing unit account of each proposed member being currently paid.
C. A group account shall:
1. Become effective after approval by the commission, as of the first day of the calendar year succeeding the year in which the application is received by the commission; however, such application shall be received by the commission not later than 30 days prior to the beginning of the calendar year in which the joint account becomes effective;
2. Remain in effect for not less than two calendar years;
3. Be terminated upon written request received by the commission no later than 30 days prior to the beginning of the calendar year for which such termination shall be effective, or at the discretion of the commission.
D. An active employing unit which is a member of a continuing group account may withdraw from such group account effective January 1, or other date at the discretion of the commission, according to the following provisions:
1. Written notice must be provided to the commission not less than 60 days prior to the desired date of withdrawal.
2. Within 10 days of receipt of such notice, the commission shall approve or deny such application and give notice thereof to the employing unit and the group account.
3. If the withdrawal will eliminate the group account, notice will be given to the account by the commission and the account will be terminated effective as of the date of withdrawal.
4. If there are two or more employers who will remain in the group account after the effective date of such withdrawal, the authorized representative shall submit an amended application pursuant to subsection A of this section not less than 30 days prior to the effective date of the withdrawal.
5. Upon approval of such application for withdrawal, the withdrawal from such group account shall become effective January 1, or such other date as determined by the commission.
E. An active employer may be added to an existing authorized group account provided that the authorized representative submits an amended application to the commission for approval 30 days prior to the effective date. (Effective January 1, or other date at the discretion of the commission.)
F. Initial responsibility to the commission for payment of the quarterly cumulative billing shall rest with the authorized representative of the group account; however, if he does not meet that responsibility within 30 days from the date the billing was mailed to him by the commission, each member of the group shall be liable for payments in lieu of taxes in accordance with § 60.2-505 of the Code of Virginia.
G. Past due or unpaid amounts in lieu of taxes by a group account are subject to the same interest, penalty, assessment, or other collection provisions of the Act as apply to employer taxes pursuant to §§ 60.2-513 and 60.2-519 through 60.2-524 of the Code of Virginia. Although responsibility for payment of the group account to the commission shall rest with the authorized representative of the group account, each member of the group account continues to be legally liable for his part of the group account until it is paid.
H. The representative shall file, within 30 days after the end of each calendar quarter, the wage reports of each member of the group on forms furnished by the commission; however, failure to furnish such forms shall not relieve the representative from filing such reports.
I. The commission shall issue a quarterly billing for each group account with respect to the combined benefit charges of all members of the group and shall mail such billing to the last known address of the authorized representative of the group.
Statutory Authority
§ 60.2-111 of the Code of Virginia.
Historical Notes
Derived from VR300-01-4:1 § 1, eff. December 14, 1994.
16VAC5-42-20. Joint accounts for governmental entities.
A. All applications for the establishment of a joint account pursuant to the provisions of § 60.2-507 of the Code of Virginia shall show:
1. The name, address, and established account number of member employing units;
2. The name and address of the authorized joint representative;
3. The signature of an authorized representative of each employing unit;
4. An authorization for the representative named by the member units to act for the joint account.
B. Approval of an application for a joint account shall be contingent upon the active employing unit account of each proposed member being currently paid.
C. A joint account shall:
1. Become effective after approval by the commission, as of the first day of the calendar year succeeding the year in which the application is received by the commission; however, such application must be received by the commission not later than 30 days prior to the beginning of the calendar year in which the joint account becomes effective;
2. Remain in effect for not less than two calendar years;
3. Be terminated upon written request received by the commission no later than 30 days prior to the beginning of the calendar year for which such termination shall be effective, or at the discretion of the commission.
D. An active employing unit which is a member of a continuing joint account may withdraw from such joint account effective January 1, or other date at the discretion of the commission, according to the following provisions:
1. Written notice must be provided to the commission not less than 60 days prior to the desired date of withdrawal.
2. Within 10 days of receipt of such notice, the commission shall approve or deny such application and give notice thereof to the employing unit and the joint account.
3. If the withdrawal will eliminate the joint account, notice will be given to the account by the commission and the account will be terminated effective as of the date of withdrawal.
4. If there are two or more employers who will remain in the joint account after the effective date of such withdrawal, the authorized representative shall submit an amended application pursuant to subsection A of 16VAC5-42-10 not less than 30 days prior to the effective date of the withdrawal.
5. Upon approval of such application for withdrawal, the withdrawal from such joint account shall become effective January 1, or such other date as determined by the commission.
E. An active employer may be added to an existing authorized joint account provided that the authorized representative submits an amended application to the commission for approval 30 days prior to the effective date. (Effective January 1, or other date at the discretion of the commission.)
F. Each joint account may elect to finance benefits to its employees by either taxes (as set forth in §§ 60.2-526 through 60.2-533 of the Code of Virginia) or payments in lieu of taxes as set forth in § 60.2-501 of the Code of Virginia. Such election shall be made upon forms provided by the commission and shall become effective on the first day of the calendar year succeeding such election and shall remain effective for at least one calendar year. Such election shall be received by the commission at least 30 days prior to the date on which the election becomes effective. Nothing contained in this subsection shall prevent a joint account which has elected a method for financing benefits to its employees from electing to finance benefits by the alternative method during any subsequent year.
G. Any joint account electing to finance benefits to its employees by taxes shall receive a tax rate computed, pursuant to the provisions of §§ 60.2-526 through 60.2-533 of the Code of Virginia, on the combined experience of each of its member units.
H. Initial responsibility to the commission for payment of the quarterly cumulate billing shall rest with the authorized representative of the joint account; however, if he does not meet that responsibility within 30 days from the date the billing was mailed to him by the commission, each member of the joint account shall be liable for payments in lieu of taxes in accordance with § 60.2-505 of the Code of Virginia. Past due or unpaid amounts in lieu of taxes by a joint account are subject to the same interest, penalty, assessment, or other collection provisions of the Act as apply to employer taxes pursuant to §§ 60.2-513 and 60.2-519 through 60.2-524 of the Code of Virginia.
I. Any joint account electing to finance benefits to its employees by taxes pursuant to §§ 60.2-526 through 60.2-533 of the Code of Virginia shall follow the procedures set forth in 16VAC5-20-10.
J. The representative shall file, within 30 days after the end of each calendar quarter, the wage reports of each member of the joint account on forms furnished by the commission; however, failure to furnish such forms shall not relieve the representative from filing such reports.
K. The commission shall issue a quarterly billing for each joint account with respect to the combined benefit charges of all members of the joint account and shall mail such billing to the last known address of the authorized representative of said joint account.
Statutory Authority
§ 60.2-111 of the Code of Virginia.
Historical Notes
Derived from VR300-01-4:1 § 2, eff. December 14, 1994.