State RegulationsVA specificDifficulty 2/5
A Virginia business employed an average of 50 employees during the preceding calendar year. Under Va. Code § 38.2-3431, how is the business classified for the small-employer market provisions?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Va. Code § 38.2-3431 defines a small employer as one that employed an average of at least 1 but no more than 50 employees during the preceding calendar year, so a business averaging 50 employees falls within the small-employer market provisions. A self-employed owner with no other employees counts as an employee for this definition. The Virginia Bureau of Insurance administers the small-employer market rules built on this definition.
Why the other options are wrong
- A) The statutory ceiling is 50 employees, not 25; an employer averaging 50 is within the small-employer definition.
- B) Employers averaging 51 or more are large employers; 30 or more is not the large-employer threshold.
- C) Self-employed owners with no other employees count as employees, so an owner's presence does not disqualify the business from small-employer status.
Memory hook
One to fifty is small — and owners count as employees too.