Department of Labor

Introduction & Background

Important Highlights

Contributions

Federal Unemployment Tax Act (FUTA)

Experience Rating

Reimbursing Employers

Records, Reports, and Audits

Independent Contractors

Localized and Non-Localized Employment

Reciprocal Coverage

Combined Wage Claims

Interstate Claims

Benefit Payment Program

Employment Service

Forms

Glossary

FAQ'S

Registration As Employer

All employing units paying wages in the Virgin Islands are required by law to (1) notify the Agency within 5 days after the first employee starts to work and (2) to register as a covered employer. Registration forms are furnished upon request for this purpose.

The registration is used to provide the Agency with the necessary information with respect to ownership, location, and type of business needed to make a determination of an employing unit's liability.

A registration and status report is also required when an employer acquires all or part of the business of another employer and when there is any change in the type of business or entity or business status.

Employment Records

The law requires that all employing units keep accurate and up-to-date records on all employees.

These records must show:

• Each employee's name and social security number.
• The date each employee was hired, separated or furloughed, rehired, or returned to work after a temporary layoff.
• The approximate age or year of birth for each employee.
• Citizenship of each employee.
• The reason for each separation or layoff.
• The period covered by the payroll record.
• The rate of pay (e.g. hourly, daily, piece rate).
• The total wages paid to each employee for each pay period showing (1) cash remuneration, (2) the cash value of other remuneration, including gratuities and tips, and (3) expenses incurred by each employee for which deduction from wages is claimed.
• Full-time scheduled working hours.
• Record of daily attendance.

NOTE: The law requires employers to make their records available and to furnish such information to authorized representatives of the Agency as it may require and in the manner and at the times it may require.

Quarterly Wage and Contribution Report

Contributing and reimbursing employers are required to file an Employer's Quarterly Wage and Contribution Report to report wage and tax information for a calendar quarter. The report and proper remittance (payable by contributing employers) are due at the end of the month following the end of a completed calendar quarter as follows:

The Agency has no authority to grant extensions of time to file quarterly reports or to pay contributions. Reimbursing employers are required to make payments in lieu of contributions within 30 days after billed.

Employer's quarterly reports are mailed to every employer in active status. The forms are preprinted with the employer's name, address, account number, quarter and year to be reported, due date, the tax rate and taxable wage base to be used in computing the tax due. If for any reason you fail to receive this form, you should request that a form be mailed to you. Whenever possible, you should use the preprinted form in order to insure correct processing of your report.

FAILURE TO RECEIVE THIS FORM DOES NOT RELIEVE YOU OF THE RESPONSIBILITY FOR FILING THE REPORT.

Extreme care should be taken to insure that the employee's name, social security number and total wages are correctly and clearly reported, because the information provided by the employer is used in processing claims for unemployment benefits. Use the instructions on the back of the Employer's Quarterly Wage and Contribution Report as a guide to filling out the form.

If you keep your payroll records on magnetic tape or diskette and would like to report to the Agency in that manner, please contact the Agency so that appropriate arrangements may be made.

Employers who discontinue or sell their business must file reports within 20 calendar days after such event occurs.
Corrections and Adjustments

If you find that a previously filed Employer's Quarterly Wage and Contribution Report was incorrect, you should notify the Agency in writing and furnish the corrected information. You may request a form for your use in making corrections or adjustments. Do not use the regular quarterly report form for making adjustments to prior quarters.

Interest and Penalty

Contributions and payments in lieu of contributions not paid when due are subject to interest at the rate of 9.0% per annum or fraction thereof until paid. In addition to the interest imposed for delinquent payments, a penalty is assessed of $5.00 for each month, or fraction of thereof, of delinquency, unless good cause is found for such delinquency.

Carelessness in preparing and filing report is insufficient as a ground for waiver of a penalty. Requests for waiver must be submitted to the Agency in writing.

Injunctions

In extreme cases where the Agency cannot secure compliance, it may petition the courts to issue an injunction prohibiting the employer from operating his business in the Virgin Islands until the employer has complied with the law.

Audits and Employer Records

In order to insure compliance with the tax provisions of the law, field audits are conducted on employers' records periodically. An audit may disclose an underpayment or overpayment of contributions by an employer. In cases of underpayment, the field auditor will collect additional contributions and interest due. In cases of overpayment, the field auditor will assist the employer in applying for a refund or credit adjustment.

All field auditors carry identifying documents issued by the Agency. Do not hesitate to ask for proper identification.