Commissioner of Labor Gary Molloy reminds all employers in the territory that following the insightful Unemployment Insurance Payroll Variation Tax Methodology Town Hall events held from February 2023 through November 2023, the Virgin Islands Department of Labor (VIDOL) has actively prepared employers for the imminent implementation of the new tax system, effective Jan. 1, 2024.
Commissioner Molloy indicated that “As we take proactive steps to usher in this new system, employers can anticipate a comprehensive tax rate assessment in accordance with Title 24, Chapter 12, Section 308.”
Unemployment Insurance Director Gary Halyard said “Commencing in the first quarter of 2024, covering January 1 to March 31, employers are required to remit taxes by April 30, to avoid penalties and interest on their respective liabilities.” The refined tax framework introduces three crucial components for employers’ rates: Base Contribution Rate, Solvency Rate and Tax Rate Factor experience rate).
By law, the commissioner will disclose the Total Contribution Rate for all Virgin Islands employers on or before Jan. 31. Individual experience rates will be communicated through comprehensive notifications dispatched via mail and email.
For more information, contact the Unemployment Insurance Division Tax Unit at 773-1994 on St. Croix or 776-3700 on St. Thomas. Stay informed by visiting www.vidol.gov or following the Virgin Islands Department of Labor on Facebook.
