The Nebraska Department of Labor announced last week that the average unemployment insurance tax rate will drop in 2016 – the fifth straight year a decrease has occurred. For most employers there will be 1 percent decrease. The state’s rate has decrease 2.33 percent since 2011.
The taxable wage base will remain $9,000.
“Nebraska employers continue to benefit from a stable Trust Fund and the decline in benefit payouts resulting from a strong economy and a decrease in unemployment claims,” said John Albin, the state labor commissioner.
Employers are expected to pay almost $20 million less in taxes in 2016 than they did in 2015. The Tax Foundation ranked Nebraska’s unemployment insurance tax system as second best in the nation in their 2016 State Business Tax Climate Index.
The above applies to all Nebraska employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes. Many Nebraska nonprofits could save even more money by opting out of the unemployment insurance tax system – an advantage provided to them by the IRS. Doing so affords nonprofits unique avenues that allow them to strategically handle unemployment claims administration and unemployment insurance taxes in ways that for-profits can only dream about.
Contact us today for more information concerning your nonprofit unemployment insurance tax advantages.