Taxes Large Employers Over Employee Federal Benefits
Virginia · HB243 · Introduced Jan 8, 2026
Why it matters
Employers that offer qualified benefits would owe a tax equal to the full value of those benefits. Job applicants could not be asked about federal benefits they receive.
What it does
- Would tax large employers 100% of qualified employee benefits
- Would bar employers from asking job applicants whether they get federal benefits
- Would add a new section to Virginia's tax code, section 58.1-1749
- Would amend the state's employment discrimination law, section 2.2-3905
Status
Latest action (2026-07-21): Continued from last session
About this bill
Would tax large employers 100 percent of federal benefits received by their Virginia employees. The Tax Department would match state data with employer rosters, and hiring staff could not ask applicants about these benefits.
Perspectives
💬 The case for
Some groups would likely say the tax discourages companies from relying on public benefits. They may also argue applicants should not be judged on federal benefits.
💬 The case against
Some business groups would likely say a tax equal to 100% of benefits is too harsh. Employers may also argue it would raise hiring costs.
Sponsored by
Sponsor details for this state bill are at the source link.
News
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