Nebraska has announced a reduction in their state unemployment insurance taxes.
The average tax rate for 2019 is 0.70 percent, a decrease of 0.06 percentage points from 2018 and a decrease from 2.63 percentage points compared to 2011.
State officials claim the the reduction in unemployment benefit payments and the healthy balance in the Nebraska Unemployment Trust Fund will result in Nebraska employers paying an estimated $4.3 million less in 2019 taxes than 2018. The U.S. Department of Labor Office of Unemployment Insurance Division of Fiscal and Actuarial Services does rate the Nebraska fund as fair with a rating of 1.70 out of 2.5.
Nonprofits Have Other Options
The above applies to most Nebraska employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes – high or low. Even with decreases in unemployment insurance taxes, many organizations are overpaying their unemployment liability. Recent analysis of 501(c)(3) employers reveals that 86% are overpaying into their state fair rating on their unemployment insurance program.
You can calculate your organization’s unemployment insurance overpayment at http://www.501c.com/overpayments/.
Contact us today for more information concerning your nonprofit unemployment insurance tax advantages.