Nevada to hold unemployment insurance tax rate steady
CARSON CITY – Unemployment insurance taxes will remain steady for 2022 Nevada Gov. Steve Sisolak announced Wednesday.
“I’ve done everything I can to support Nevada’s businesses, and this is one more step toward recovery from the ongoing effects of the pandemic. Since 2019, the Average Tax Rate has declined to its lowest level in more than a decade, and we intend to keep it low,” said Gov. Sisolak. “I appreciate the hard work of the Employment Security Council and the Employment Security Division Administrator to hear from all the stakeholders and come to a conclusion that protects Nevada’s businesses in this critical moment.”
Last month, the Employment Security Council (ESC) recommended an increase of the state UI tax on employers, from 1.65% to 2%.
Lynda Parven, an administrator in the Employment Security Division, said community meetings and discussions with business owners and state agencies provided valuable feedback. Through that process officials decided to increase the tax.
“The public comment process worked. We are open to hearing from our constituents and adjusting as needed to ensure the success of all Nevadans,” said Parven.
Nevada’s Department of Employment, Training and Rehabilitation (DETR) also worked with a number of state agencies to find funding to repay federal loans taken to cover unemployment benefits during the pandemic. American Rescue Plan funds will be used to repay those loans, removing loan repayment and interest obligations.
“DETR worked with the legislature to relieve businesses of the cost of unemployment benefits for the second, third and fourth quarters of 2020 and the first, second, and third quarters of 2021. Their experience rating will also not be charged for the same six quarters,” said DETR Director Elisa Cafferata. “As we move forward, we will continue this type of collaboration on behalf of all Nevadans.”
Source: Nevada Governor’s Office
