Because the loan was repaid prior to Novemand the state continued to have no loan balance as of January 1, 2022, Nevada employers are spared a Federal Unemployment Tax Act (FUTA) credit reduction for calendar year 2022, which would have increased the FUTA tax rate for Nevada employers by 0.3%.įor additional information concerning this Alert, please contact: Nevada began borrowing from the federal government in December 2020 when the state's UI trust fund, which had a balance of almost $2 billion prior to the pandemic, became insolvent. Repayment before Septemavoided the need for the ESD to assess employers for federal interest due Septemon the federal UI loan through an additional surcharge. Nevada repaid its federal UI loan in full in late 2021 using federal American Rescue Plan Act (ARPA) funds. Reimbursable employers did receive a billing statement for the third quarter of 2021, for benefit weeks ending from Septemthrough October 2, 2021. Reimbursable employers were relieved from paying UI benefits, and did not receive a billing notice, for the second through fourth quarters of 2020 and the first and second quarters of 2021. ( EY Tax Alert 2020-1997, 8-6-2020.)Ĭontributory employers did not receive benefit charge statements for the applicable quarters.( Employer Self-Service ( ESS ) account.) According to the ESD's website, employers have not been charged for UI benefits from second quarter of 2020 through the third quarter of 2021.Īccordingly, UI benefits for these quarters were disregarded when the ESD calculated employer the SUI tax rates for 20. The ESD announced that through the issuance of regulations and the passage of SB75 in 2021 employer accounts would not be charged with UI benefits during the pandemic. Įmployers not charged with UI benefits through second-quarter 2021 )įor information on how the average SUI tax rate and the tax rate schedule are determined each year, see the public meeting site of the Nevada Department of Employment, Training and Rehabilitation at. ( December 2021 quarterly employer newsletter. Tax rate notices are also available electronically on the employer's Employer Self-Service ( ESS) account. The 2022 employer tax rate notices were mailed on December 17, 2021. The SUI taxable wage base is calculated each year at 66 2/3% of the average annual wage paid to Nevada workers in the previous calendar year. The 2022 SUI taxable wage base increased to $36,600, up from $33,4. Note that this additional surcharge is not counted as SUI contributions for federal Form 940 calculation purposes. The additional Career Enhancement Program (CEP) surcharge remains at 0.05%. The 2022 new employer rate remains at 2.95%. Instead, after discussion with the business community, the Employment Security Division (ESD) decided to hold the average rate at 1.65%, the same as was in effect for 20. )Īccording to Governor Steve Sisolak's news release, the Nevada Employment Security Council recommended an increase to the SUI tax rates for 2022, increasing the average rate from 1.65% for 2021 to an average rate of 2% for 2022. The tax brackets changed slightly, but the average SUI tax rate remains 1.65% for 2022. The 2022 state unemployment insurance (SUI) tax rates continue to range from 0.25% to 5.4%. Nevada 2022 SUI wage base increased but tax rates remain unchanged
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