Nevada to keep unemployment insurance tax rate for businesses at 1.65%

Local News

LAS VEGAS (KLAS) — Nevada employers will pay the same rate for unemployment insurance taxes in 2022, according to a statement from the office of Gov. Steve Sisolak on Wednesday.

That means a recommended increase to 2% will not happen for next year.

“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,” Sisolak said.

The pandemic exhausted the unemployment trust fund and forced Nevada to borrow from the Social Security Administration to continue paying unemployment benefits. But the state announced in mid-October that it was using eligible funds from the American Rescue Plan Act to repay the debt before interest began to accrue.

Moving forward, unemployment taxes will begin to rebuild the trust fund to be prepared for another unemployment disaster.

The decision to keep the tax at 1.65% came after “considerable analysis, conversation and discussion between the Governor’s Office, the Nevada Department of Employment, Training and Rehabilitation and the Nevada business community,” according to a Wednesday news release.

“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.”

The regulation will go before the Employment Security Council on Dec. 18. For information on the public meeting visit this link: https://detr.nv.gov/Page/Public_Meetings.

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