{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/60.2-501.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/60.2-501.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/60.2-501.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/60.2-501.html"}],"law_id":74537,"edition_id":1,"section_id":74537,"structure_id":15800,"section_number":"60.2-501","catch_line":"Financing of benefits to employees of nonprofit organizations","history":"1974, c. 466, \u00a7 60.1-89; 1981, cc. 248, 252; 1986, c. 480.","full_text":"A\n\nBenefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this section. For the purpose of this section, a nonprofit organization is an organization, or group of organizations, described in § 501(c) (3) of the United States Internal Revenue Code which is exempt from income tax under § 501 (a) of that Code.B\n\nAny nonprofit organization which, pursuant to subdivision 8 of subsection B of \u00a7 60.2-210, is or becomes subject to this title shall pay taxes under the provisions of \u00a7 60.2-511, unless it elects, in accordance with this subsection, to pay to the Commission for the unemployment fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable to service in the employ of such nonprofit organization, and that is for weeks of unemployment which begin during the effective period of such election.1\n\nAny nonprofit organization which is or becomes subject to this title may elect to become liable for payments in lieu of taxes for a period of not less than one taxable year beginning with January 1 of each year, provided it files with the Commission a written notice of its election within the thirty-day period immediately following such date.2\n\nAny nonprofit organization which becomes subject to this title may elect to become liable for payments in lieu of taxes for a period of not less than twelve months beginning with the date on which such subjectivity begins by filing a written notice of its election with the Commission not later than thirty days immediately following the date of the determination of such subjectivity.3\n\nAny nonprofit organization which makes an election in accordance with subdivision 1 or 2 of this subsection shall continue to be liable for payments in lieu of taxes until it files with the Commission a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such termination shall first be effective.4\n\nAny nonprofit organization which has been paying taxes under this title may change to a reimbursable basis by filing with the Commission, not later than thirty days prior to the beginning of any taxable year, a written notice of election to become liable for payments in lieu of taxes. Such election shall not be terminable by the organization for that and the next year.5\n\nThe Commission may for good cause extend the period within which a notice of election, or a notice of termination, shall be filed and may permit an election to be retroactive but not any earlier than January 1 of the current calendar year.6\n\nThe Commission, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal and review in accordance with the provisions of § 60.2-500.C\n\nPayments in lieu of taxes shall be made in accordance with the provisions of this subsection, including either subdivision 1 or 2.1\n\na. At the end of each calendar quarter, or at the end of any other period as determined by the Commission, the Commission shall bill each nonprofit organization, or group of such organizations, which has elected to make payments in lieu of taxes for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during such quarter or other prescribed period that is attributable to service in the employ of such organization.\n\t\t\t\tb. If the final adjudication of a disputed claim finds the claimant totally or partially ineligible for benefits, the nonprofit organization shall be liable for any bill resulting from payments made to the claimant during or prior to the appeal process, whether made by erroneous statutory interpretation, administrative error, or incorrect wage reporting.2\n\na. Each nonprofit organization that has elected payments in lieu of taxes may request permission to make such payments as provided in this paragraph. Such method of payment shall become effective upon approval by the Commission.\n\t\t\t\tb. At the end of each calendar quarter, or at the end of such other period as determined by the Commission, the Commission shall bill each nonprofit organization for an amount representing one of the following:1\n\nOne-tenth of one percent of its total payroll for the preceding calendar year.2\n\nSuch percentage of its total payroll for the immediately preceding calendar year as the Commission shall determine. Such determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year.3\n\nFor any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the Commission shall determine.\n\t\t\t\t\tc. At the end of each taxable year, the Commission may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.\n\t\t\t\t\td. At the end of each taxable year, the Commission shall determine whether the total of payments for such year made by a nonprofit organization is more or less than the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with subdivision 3 of this subsection. If the total payments exceed the amount so determined for the taxable year, all or a part of the excess may, at the discretion of the Commission, be refunded from the fund or retained in the fund as part of the payments which may be required for the next taxable year.3\n\nPayment of any bill rendered under subdivision 1 or 2 of this subsection shall be made not later than thirty days after such bill was mailed to the last known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review and redetermination in accordance with subdivision 5 of this subsection.4\n\nPayments made by any nonprofit organization under the provisions of this subsection shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.5\n\nThe amount due specified in any bill from the Commission shall be conclusive on the organization unless, not later than thirty days after the bill was mailed to its last known address or otherwise delivered to it, the organization files an appeal with the Commission, setting forth the grounds for such appeal. Proceedings on appeal to the Commission from the amount of a bill rendered under this subsection or a redetermination of such amount shall be in accordance with the provisions of § 60.2-500. The decision of the Commission shall be subject to the provisions of § 60.2-500.6\n\nPast-due payments of amounts in lieu of taxes shall be subject to the same interest and penalties that, pursuant to § 60.2-519, apply to past-due taxes.","order_by":null,"text":{"0":{"id":267863,"text":"Benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this section. For the purpose of this section, a nonprofit organization is an organization, or group of organizations, described in § 501(c) (3) of the United States Internal Revenue Code which is exempt from income tax under § 501 (a) of that Code.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":267864,"text":"Any nonprofit organization which, pursuant to subdivision 8 of subsection B of \u00a7 60.2-210, is or becomes subject to this title shall pay taxes under the provisions of \u00a7 60.2-511, unless it elects, in accordance with this subsection, to pay to the Commission for the unemployment fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable to service in the employ of such nonprofit organization, and that is for weeks of unemployment which begin during the effective period of such election.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":267865,"text":"Any nonprofit organization which is or becomes subject to this title may elect to become liable for payments in lieu of taxes for a period of not less than one taxable year beginning with January 1 of each year, provided it files with the Commission a written notice of its election within the thirty-day period immediately following such date.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":267866,"text":"Any nonprofit organization which becomes subject to this title may elect to become liable for payments in lieu of taxes for a period of not less than twelve months beginning with the date on which such subjectivity begins by filing a written notice of its election with the Commission not later than thirty days immediately following the date of the determination of such subjectivity.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":267867,"text":"Any nonprofit organization which makes an election in accordance with subdivision 1 or 2 of this subsection shall continue to be liable for payments in lieu of taxes until it files with the Commission a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such termination shall first be effective.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":267868,"text":"Any nonprofit organization which has been paying taxes under this title may change to a reimbursable basis by filing with the Commission, not later than thirty days prior to the beginning of any taxable year, a written notice of election to become liable for payments in lieu of taxes. Such election shall not be terminable by the organization for that and the next year.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":267869,"text":"The Commission may for good cause extend the period within which a notice of election, or a notice of termination, shall be filed and may permit an election to be retroactive but not any earlier than January 1 of the current calendar year.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":267870,"text":"The Commission, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal and review in accordance with the provisions of § 60.2-500.","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"C"},"8":{"id":267871,"text":"Payments in lieu of taxes shall be made in accordance with the provisions of this subsection, including either subdivision 1 or 2.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B6","next_prefix":"C1"},"9":{"id":267872,"text":"a. At the end of each calendar quarter, or at the end of any other period as determined by the Commission, the Commission shall bill each nonprofit organization, or group of such organizations, which has elected to make payments in lieu of taxes for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during such quarter or other prescribed period that is attributable to service in the employ of such organization.\n\t\t\t\tb. If the final adjudication of a disputed claim finds the claimant totally or partially ineligible for benefits, the nonprofit organization shall be liable for any bill resulting from payments made to the claimant during or prior to the appeal process, whether made by erroneous statutory interpretation, administrative error, or incorrect wage reporting.","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"10":{"id":267873,"text":"a. Each nonprofit organization that has elected payments in lieu of taxes may request permission to make such payments as provided in this paragraph. Such method of payment shall become effective upon approval by the Commission.\n\t\t\t\tb. At the end of each calendar quarter, or at the end of such other period as determined by the Commission, the Commission shall bill each nonprofit organization for an amount representing one of the following:","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C21"},"11":{"id":267874,"text":"One-tenth of one percent of its total payroll for the preceding calendar year.","type":"section","prefixes":["C","2","1"],"prefix":"1","entire_prefix":"C21","prefix_anchor":"C21","level":3,"prior_prefix":"C2","next_prefix":"C22"},"12":{"id":267875,"text":"Such percentage of its total payroll for the immediately preceding calendar year as the Commission shall determine. Such determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year.","type":"section","prefixes":["C","2","2"],"prefix":"2","entire_prefix":"C22","prefix_anchor":"C22","level":3,"prior_prefix":"C21","next_prefix":"C23"},"13":{"id":267876,"text":"For any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the Commission shall determine.\n\t\t\t\t\tc. At the end of each taxable year, the Commission may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.\n\t\t\t\t\td. At the end of each taxable year, the Commission shall determine whether the total of payments for such year made by a nonprofit organization is more or less than the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with subdivision 3 of this subsection. If the total payments exceed the amount so determined for the taxable year, all or a part of the excess may, at the discretion of the Commission, be refunded from the fund or retained in the fund as part of the payments which may be required for the next taxable year.","type":"section","prefixes":["C","2","3"],"prefix":"3","entire_prefix":"C23","prefix_anchor":"C23","level":3,"prior_prefix":"C22","next_prefix":"C3"},"14":{"id":267877,"text":"Payment of any bill rendered under subdivision 1 or 2 of this subsection shall be made not later than thirty days after such bill was mailed to the last known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review and redetermination in accordance with subdivision 5 of this subsection.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C23","next_prefix":"C4"},"15":{"id":267878,"text":"Payments made by any nonprofit organization under the provisions of this subsection shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"16":{"id":267879,"text":"The amount due specified in any bill from the Commission shall be conclusive on the organization unless, not later than thirty days after the bill was mailed to its last known address or otherwise delivered to it, the organization files an appeal with the Commission, setting forth the grounds for such appeal. Proceedings on appeal to the Commission from the amount of a bill rendered under this subsection or a redetermination of such amount shall be in accordance with the provisions of § 60.2-500. The decision of the Commission shall be subject to the provisions of § 60.2-500.","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"17":{"id":267880,"text":"Past-due payments of amounts in lieu of taxes shall be subject to the same interest and penalties that, pursuant to § 60.2-519, apply to past-due taxes.","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5"}},"ancestry":[{"id":15800,"edition_id":1,"name":"Employer Taxation","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13052,"metadata":{},"date_created":"2026-06-26 03:59:42","date_modified":"2026-06-26 03:59:42","permalink":{"id":267635,"object_type":"structure","relational_id":15800,"identifier":"1","token":"60.2\/5\/1","url":"\/60.2\/5\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13052,"edition_id":1,"name":"Taxation","identifier":"5","label":"chapter","depth":2,"order_by":1,"parent_id":12883,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":267633,"object_type":"structure","relational_id":13052,"identifier":"5","token":"60.2\/5","url":"\/60.2\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12883,"edition_id":1,"name":"Unemployment Compensation","identifier":"60.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":267273,"object_type":"structure","relational_id":12883,"identifier":"60.2","token":"60.2","url":"\/60.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79987,"structure_id":15800,"section_number":"60.2-500","catch_line":"Determination with respect to whether employing unit is employer; whether services constitute employment; or whether business transfer is illegal","url":"\/60.2-500\/","token":"60.2\/5\/1\/60.2-500","metadata":false},{"id":74537,"structure_id":15800,"section_number":"60.2-501","catch_line":"Financing of benefits to employees of nonprofit organizations","url":"\/60.2-501\/","token":"60.2\/5\/1\/60.2-501","metadata":false},{"id":64084,"structure_id":15800,"section_number":"60.2-502","catch_line":"Bonding of nonprofit organizations","url":"\/60.2-502\/","token":"60.2\/5\/1\/60.2-502","metadata":false},{"id":82934,"structure_id":15800,"section_number":"60.2-503","catch_line":"Authority to terminate elections","url":"\/60.2-503\/","token":"60.2\/5\/1\/60.2-503","metadata":false},{"id":61679,"structure_id":15800,"section_number":"60.2-504","catch_line":"Allocation of benefit costs","url":"\/60.2-504\/","token":"60.2\/5\/1\/60.2-504","metadata":false},{"id":65862,"structure_id":15800,"section_number":"60.2-505","catch_line":"Group accounts","url":"\/60.2-505\/","token":"60.2\/5\/1\/60.2-505","metadata":false},{"id":66996,"structure_id":15800,"section_number":"60.2-506","catch_line":"Financing of benefits to state employees","url":"\/60.2-506\/","token":"60.2\/5\/1\/60.2-506","metadata":false},{"id":63537,"structure_id":15800,"section_number":"60.2-507","catch_line":"Financing of benefits to employees of governmental entities","url":"\/60.2-507\/","token":"60.2\/5\/1\/60.2-507","metadata":false},{"id":75938,"structure_id":15800,"section_number":"60.2-507.1","catch_line":"Financing of benefits to employees of Indian tribes","url":"\/60.2-507.1\/","token":"60.2\/5\/1\/60.2-507.1","metadata":false},{"id":70581,"structure_id":15800,"section_number":"60.2-508","catch_line":"Period of coverage generally; account required","url":"\/60.2-508\/","token":"60.2\/5\/1\/60.2-508","metadata":false},{"id":72820,"structure_id":15800,"section_number":"60.2-509","catch_line":"Termination of coverage","url":"\/60.2-509\/","token":"60.2\/5\/1\/60.2-509","metadata":false},{"id":60892,"structure_id":15800,"section_number":"60.2-510","catch_line":"Election as to coverage","url":"\/60.2-510\/","token":"60.2\/5\/1\/60.2-510","metadata":false}],"previous_section":{"id":79987,"structure_id":15800,"section_number":"60.2-500","catch_line":"Determination with respect to whether employing unit is employer; whether services constitute employment; or whether business transfer is illegal","url":"\/60.2-500\/","token":"60.2\/5\/1\/60.2-500","metadata":false},"next_section":{"id":64084,"structure_id":15800,"section_number":"60.2-502","catch_line":"Bonding of nonprofit organizations","url":"\/60.2-502\/","token":"60.2\/5\/1\/60.2-502","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/60.2-501\/","history_text":"

This law was first created in 1974. The record of its establishment is cataloged in chapter 466 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1974 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1981, chapters 248 and 252; in 1986, chapter 480.<\/p>","references":[{"id":83057,"section_number":"60.2-209","catch_line":"Taxes","order_by":null,"url":"\/60.2-209\/"},{"id":64084,"section_number":"60.2-502","catch_line":"Bonding of nonprofit organizations","order_by":null,"url":"\/60.2-502\/"},{"id":82934,"section_number":"60.2-503","catch_line":"Authority to terminate elections","order_by":null,"url":"\/60.2-503\/"},{"id":65862,"section_number":"60.2-505","catch_line":"Group accounts","order_by":null,"url":"\/60.2-505\/"},{"id":63537,"section_number":"60.2-507","catch_line":"Financing of benefits to employees of governmental entities","order_by":null,"url":"\/60.2-507\/"},{"id":67705,"section_number":"60.2-521","catch_line":"Collection by civil action; persons subject to civil actions; other remedies; compromise and adjustment","order_by":null,"url":"\/60.2-521\/"},{"id":84523,"section_number":"60.2-526","catch_line":"General provisions","order_by":null,"url":"\/60.2-526\/"}],"refers_to":[{"id":76078,"section_number":"60.2-210","catch_line":"Employer","order_by":null,"url":"\/60.2-210\/"},{"id":79987,"section_number":"60.2-500","catch_line":"Determination with respect to whether employing unit is employer; whether services constitute employment; or whether business transfer is illegal","order_by":null,"url":"\/60.2-500\/"},{"id":54110,"section_number":"60.2-511","catch_line":"How and when taxes payable","order_by":null,"url":"\/60.2-511\/"},{"id":58780,"section_number":"60.2-519","catch_line":"Interest on past-due taxes","order_by":null,"url":"\/60.2-519\/"}],"permalink":{"id":267641,"object_type":"law","relational_id":74537,"identifier":"60.2-501","token":"60.2\/5\/1\/60.2-501","url":"\/60.2-501\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/60.2-501\/","token":"60.2\/5\/1\/60.2-501","dublin_core":{"Title":"Financing of benefits to employees of nonprofit organizations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 60.2-501","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this section. For the purpose of this section, a nonprofit organization is an organization, or group of organizations, described in § 501(c) (3) of the United States Internal Revenue Code which is exempt from income tax under § 501 (a) of that Code. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any nonprofit organization which, pursuant to subdivision 8 of subsection B of \u00a7 60.2-210<\/a>, is or becomes subject to this title shall pay taxes under the provisions of \u00a7 60.2-511<\/a>, unless it elects, in accordance with this subsection, to pay to the Commission for the unemployment fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable to service in the employ of such nonprofit organization, and that is for weeks of unemployment which begin during the effective period of such election. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Any nonprofit organization which is or becomes subject to this title may elect to become liable for payments in lieu of taxes for a period of not less than one taxable year beginning with January 1 of each year, provided it files with the Commission a written notice of its election within the thirty-day period immediately following such date. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any nonprofit organization which becomes subject to this title may elect to become liable for payments in lieu of taxes for a period of not less than twelve months beginning with the date on which such subjectivity begins by filing a written notice of its election with the Commission not later than thirty days immediately following the date of the determination of such subjectivity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any nonprofit organization which makes an election in accordance with subdivision 1 or 2 of this subsection shall continue to be liable for payments in lieu of taxes until it files with the Commission a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such termination shall first be effective. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any nonprofit organization which has been paying taxes under this title may change to a reimbursable basis by filing with the Commission, not later than thirty days prior to the beginning of any taxable year, a written notice of election to become liable for payments in lieu of taxes. Such election shall not be terminable by the organization for that and the next year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The Commission may for good cause extend the period within which a notice of election, or a notice of termination, shall be filed and may permit an election to be retroactive but not any earlier than January 1 of the current calendar year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The Commission, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal<\/span> and review in accordance with the provisions of § 60.2-500<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Payments in lieu of taxes shall be made in accordance with the provisions of this subsection, including either subdivision 1 or 2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> a. At the end of each calendar quarter, or at the end of any other period as determined by the Commission, the Commission shall bill each nonprofit organization, or group of such organizations, which has elected to make payments in lieu of taxes for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during such quarter or other prescribed period that is attributable to service in the employ of such organization.\n\t\t\t\tb. If the final adjudication of a disputed claim finds the claimant totally or partially ineligible for benefits, the nonprofit organization shall be liable for any bill resulting from payments made to the claimant during or prior to the appeal<\/span> process, whether made by erroneous statutory interpretation, administrative error, or incorrect wage reporting. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> a. Each nonprofit organization that has elected payments in lieu of taxes may request permission to make such payments as provided in this paragraph. Such method of payment shall become effective upon approval by the Commission.\n\t\t\t\tb. At the end of each calendar quarter, or at the end of such other period as determined by the Commission, the Commission shall bill each nonprofit organization for an amount representing one of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> One-tenth of one percent of its total payroll for the preceding calendar year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Such percentage of its total payroll for the immediately preceding calendar year as the Commission shall determine. Such determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> For any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the Commission shall determine.\n\t\t\t\t\tc. At the end of each taxable year, the Commission may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order<\/span> to minimize excess or insufficient payments.\n\t\t\t\t\td. At the end of each taxable year, the Commission shall determine whether the total of payments for such year made by a nonprofit organization is more or less than the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with subdivision 3 of this subsection. If the total payments exceed the amount so determined for the taxable year, all or a part of the excess may, at the discretion of the Commission, be refunded from the fund or retained in the fund as part of the payments which may be required for the next taxable year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Payment of any bill rendered under subdivision 1 or 2 of this subsection shall be made not later than thirty days after such bill was mailed to the last known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review and redetermination in accordance with subdivision 5 of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Payments made by any nonprofit organization under the provisions of this subsection shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The amount due specified in any bill from the Commission shall be conclusive on the organization unless, not later than thirty days after the bill was mailed to its last known address or otherwise delivered to it, the organization files an appeal<\/span> with the Commission, setting forth the grounds for such appeal<\/span>. Proceedings on appeal<\/span> to the Commission from the amount of a bill rendered under this subsection or a redetermination of such amount shall be in accordance with the provisions of § 60.2-500<\/a>. The decision of the Commission shall be subject to the provisions of § 60.2-500<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Past-due payments of amounts in lieu of taxes shall be subject to the same interest and penalties that, pursuant to § 60.2-519<\/a>, apply to past-due taxes. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFINANCING OF BENEFITS TO EMPLOYEES OF NONPROFIT ORGANIZATIONS (\u00a7 60.2-501)\n\nA. Benefits paid to employees of nonprofit organizations shall be financed in\naccordance with the provisions of this section. For the purpose of this section,\na nonprofit organization is an organization, or group of organizations,\ndescribed in § 501(c) (3) of the United States Internal Revenue Code which\nis exempt from income tax under § 501 (a) of that Code.\n\nB. Any nonprofit organization which, pursuant to subdivision 8 of subsection B\nof \u00a7 60.2-210, is or becomes subject to this title shall pay taxes under the\nprovisions of \u00a7 60.2-511, unless it elects, in accordance with this subsection,\nto pay to the Commission for the unemployment fund an amount equal to the amount\nof regular benefits and of one-half of the extended benefits paid, that is\nattributable to service in the employ of such nonprofit organization, and that\nis for weeks of unemployment which begin during the effective period of such\nelection.\n\n 1. Any nonprofit organization which is or becomes subject to this title may\n elect to become liable for payments in lieu of taxes for a period of not less\n than one taxable year beginning with January 1 of each year, provided it files\n with the Commission a written notice of its election within the thirty-day\n period immediately following such date.\n\n 2. Any nonprofit organization which becomes subject to this title may elect to\n become liable for payments in lieu of taxes for a period of not less than\n twelve months beginning with the date on which such subjectivity begins by\n filing a written notice of its election with the Commission not later than\n thirty days immediately following the date of the determination of such\n subjectivity.\n\n 3. Any nonprofit organization which makes an election in accordance with\n subdivision 1 or 2 of this subsection shall continue to be liable for payments\n in lieu of taxes until it files with the Commission a written notice\n terminating its election not later than thirty days prior to the beginning of\n the taxable year for which such termination shall first be effective.\n\n 4. Any nonprofit organization which has been paying taxes under this title may\n change to a reimbursable basis by filing with the Commission, not later than\n thirty days prior to the beginning of any taxable year, a written notice of\n election to become liable for payments in lieu of taxes. Such election shall\n not be terminable by the organization for that and the next year.\n\n 5. The Commission may for good cause extend the period within which a notice\n of election, or a notice of termination, shall be filed and may permit an\n election to be retroactive but not any earlier than January 1 of the current\n calendar year.\n\n 6. The Commission, in accordance with such regulations as it may prescribe,\n shall notify each nonprofit organization of any determination which it may\n make of its status as an employer and of the effective date of any election\n which it makes and of any termination of such election. Such determinations\n shall be subject to reconsideration, appeal and review in accordance with the\n provisions of § 60.2-500.\n\nC. Payments in lieu of taxes shall be made in accordance with the provisions of\nthis subsection, including either subdivision 1 or 2.\n\n 1. a. At the end of each calendar quarter, or at the end of any other period\n as determined by the Commission, the Commission shall bill each nonprofit\n organization, or group of such organizations, which has elected to make\n payments in lieu of taxes for an amount equal to the full amount of regular\n benefits plus one-half of the amount of extended benefits paid during such\n quarter or other prescribed period that is attributable to service in the\n employ of such organization.\n \t\t\t\tb. If the final adjudication of a disputed claim finds the claimant\n totally or partially ineligible for benefits, the nonprofit organization shall\n be liable for any bill resulting from payments made to the claimant during or\n prior to the appeal process, whether made by erroneous statutory\n interpretation, administrative error, or incorrect wage reporting.\n\n 2. a. Each nonprofit organization that has elected payments in lieu of taxes\n may request permission to make such payments as provided in this paragraph.\n Such method of payment shall become effective upon approval by the Commission.\n \t\t\t\tb. At the end of each calendar quarter, or at the end of such other period\n as determined by the Commission, the Commission shall bill each nonprofit\n organization for an amount representing one of the following:\n\n 1. One-tenth of one percent of its total payroll for the preceding calendar\n year.\n\n 2. Such percentage of its total payroll for the immediately preceding\n calendar year as the Commission shall determine. Such determination shall be\n based each year on the average benefit costs attributable to service in the\n employ of nonprofit organizations during the preceding calendar year.\n\n 3. For any organization which did not pay wages throughout the four calendar\n quarters of the preceding calendar year, such percentage of its payroll\n during such year as the Commission shall determine.\n \t\t\t\t\tc. At the end of each taxable year, the Commission may modify the\n quarterly percentage of payroll thereafter payable by the nonprofit\n organization in order to minimize excess or insufficient payments.\n \t\t\t\t\td. At the end of each taxable year, the Commission shall determine\n whether the total of payments for such year made by a nonprofit organization\n is more or less than the total amount of regular benefits plus one-half of\n the amount of extended benefits paid to individuals during such taxable year\n based on wages attributable to service in the employ of such organization.\n Each nonprofit organization whose total payments for such year are less than\n the amount so determined shall be liable for payment of the unpaid balance\n to the fund in accordance with subdivision 3 of this subsection. If the\n total payments exceed the amount so determined for the taxable year, all or\n a part of the excess may, at the discretion of the Commission, be refunded\n from the fund or retained in the fund as part of the payments which may be\n required for the next taxable year.\n\n 3. Payment of any bill rendered under subdivision 1 or 2 of this subsection\n shall be made not later than thirty days after such bill was mailed to the\n last known address of the nonprofit organization or was otherwise delivered to\n it, unless there has been an application for review and redetermination in\n accordance with subdivision 5 of this subsection.\n\n 4. Payments made by any nonprofit organization under the provisions of this\n subsection shall not be deducted or deductible, in whole or in part, from the\n remuneration of individuals in the employ of the organization.\n\n 5. The amount due specified in any bill from the Commission shall be\n conclusive on the organization unless, not later than thirty days after the\n bill was mailed to its last known address or otherwise delivered to it, the\n organization files an appeal with the Commission, setting forth the grounds\n for such appeal. Proceedings on appeal to the Commission from the amount of a\n bill rendered under this subsection or a redetermination of such amount shall\n be in accordance with the provisions of § 60.2-500. The decision of the\n Commission shall be subject to the provisions of § 60.2-500.\n\n 6. Past-due payments of amounts in lieu of taxes shall be subject to the same\n interest and penalties that, pursuant to § 60.2-519, apply to past-due\n taxes.\n\nHISTORY: 1974, c. 466, \u00a7 60.1-89; 1981, cc. 248, 252; 1986, c. 480.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}