What’s the difference between a reimbursable employer and a contributory (taxable) employer?
A reimbursable employer is usually a government agency or a 501(c)(3) nonprofit. Instead of paying unemployment taxes every quarter like most employers, they reimburse the state for the exact amount of unemployment benefits paid to their former employees.
A contributory (taxable) employer makes regular unemployment tax payments into Virginia’s Unemployment Insurance Trust Fund. These employers pay taxes based on their payroll and tax rate, regardless of how many former employees collect benefits.
