What it is
The Virginia Employment Commission (VEC) is the state agency that administers unemployment insurance in Virginia. For a startup, it matters as soon as you hire: employers that meet the liability thresholds must register, report wages and pay state unemployment tax. The VEC is also responsible for Virginia's new Paid Family and Medical Leave program and links to Virginia Works for workforce services and labor market information.
When and how employers register
According to the VEC's employer responsibilities page, employers liable for federal unemployment tax are also liable in Virginia. A general employer becomes liable with a quarterly payroll of $1,500 or more, or by employing someone in at least 20 weeks of a calendar year. Agricultural, domestic and 501(c)(3) nonprofit employers have different thresholds, and buying a liable business also creates liability. Employers register online through iFile/iReg, or by mailing Form VEC FC-27 only once they meet a requirement. New accounts receive a mailed New Employer notice with the account number, tax rates and reporting information.
Ongoing filing and obligations
The tax filing and registration page lists three free online options for quarterly payroll reports: eForms FC20/21 for employers with up to 25 employees, Employer Self Service for up to 99 employees, and Web Upload for larger or multiple companies. Employers must respond to separation reports when former employees file claims, and those responses go through Employer Self Service. Failure to respond can bring penalties and loss of appeal rights. Employers must also display required workplace notices.
Paid Family and Medical Leave
Under the VEC's PFML program, payroll contributions begin April 1, 2028 and workers may apply for benefits starting December 1, 2028. The program is expected to cover most Virginia workers, including part-time and small business employees, with optional participation for the self-employed. The contribution rate will be set annually, with the 2028 rate due by October 1, 2027. Employers with 10 or fewer employees do not pay the employer share, and employers may apply to offer an approved private plan.
Contact and why it matters
The Employer Line is (866) 354-5579 and iFile/iReg help is (804) 786-1082, with phone hours of 8:00 a.m. to 4:30 p.m. on weekdays. Mail goes to P.O. Box 26441, Richmond, VA 23261-6441. Any DMV startup with employees working in Virginia should plan for VEC registration alongside Virginia Tax withholding, and should budget now for PFML contributions in 2028.
