Va. policy change could provide payroll tax relief for some employers

RICHMOND, Va. (AP)- State officials are making a temporary policy change that will provide about $200 million in payroll tax relief next year to Virginia businesses that laid off workers amid the pandemic.

Under an executive order from Gov. Ralph Northam, the Virginia Employment Commission won’t be counting layoffs that took place in April, May or June of 2020 against businesses when calculating unemployment insurance tax rates for 2021.

The governor’s office announced the change Tuesday, saying it would prevent Virginia’s struggling businesses from having to devote critical resources to higher state payroll taxes.

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