(The Center Square) – A new law taking effect Wednesday will increase unemployment benefits for some Virginians, with higher weekly payments available for new unemployment insurance claims filed on or after July 5.
The legislation, approved by the General Assembly and signed by Gov. Abigail Spanberger in April, raises the maximum weekly unemployment benefit from $430 to $478. The minimum weekly benefit will increase from $112 to $160 under House Bill 1320 and Senate Bill 759.
The higher benefit amounts apply only to new unemployment insurance claims filed on or after July 5. Claims filed before that date will continue under the previous benefit schedule, according to the Virginia Employment Commission.
“These changes will provide additional financial support to eligible Virginians during periods of unemployment and help families meet essential expenses while they search for new employment,” Virginia Employment Commission Commissioner Melissa Smith said. “By ensuring households can maintain spending on necessities during difficult times, unemployment insurance also plays a critical role in stabilizing the economy of the Commonwealth.”
The commission said unemployment claims cannot be backdated and encouraged people considering filing an initial claim to pay close attention to the July 5 filing date before submitting an application. The agency also recommends using its online Unemployment Insurance Benefits Estimator to estimate potential benefits before filing.
According to the Department of Planning and Budget’s fiscal impact statement, the benefit increase is expected to increase annual expenditures from Virginia’s Unemployment Insurance Trust Fund by about $75.6 million.
The analysis estimates the trust fund will pay an additional $75.6 million each year based on historical unemployment claims. To help cover the increase, employer unemployment insurance taxes are projected to rise by an average of about $21.21 per employee annually, or about 0.27% of the taxable wage base.
The fiscal impact statement also estimates the Virginia Employment Commission will incur about $46,000 in one-time administrative costs to update benefit tables, implement computer system changes and notify employers and claimants about the new benefit amounts.
To qualify for the maximum weekly benefit of $478, an individual’s combined earnings from two quarters during the base period must total at least $18,900.01, according to the commission.
House Bill 1320 was sponsored by Del. Marty Martinez, D-Loudoun, while the companion Senate bill, Senate Bill 759, was sponsored by then-Sen. Adam Ebbin, D-Alexandria.
Originally published on thecentersquare.com, part of the BLOX Digital Content Exchange.
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