Nevada has decided to change its unemployment insurance taxes for 2016. Most state employers will see an increase in the amount they pay per employee next year.
The average employer unemployment insurance tax rate, a tax which almost all employers pay, will drop to 1.95 percent in 2016 from 2 percent in 2015.
That official rate remains higher due to a separate percentage imposed to finance bonds issued to pay off a loan to the federal government when Nevada’s unemployment trust fund emptied during the recession. The final overall rate will be 2.62 percent on average in 2016, up from 2.61 percent.
The state also decided to increase its taxable wage base, the metric on which unemployment taxes are calculated, to $28,200, up from $27,800.
When all the changes are taken into account, the average cost per employee for all unemployment insurance contributions will increase to $738.84 next year, up from $725.58.
The overall fee increase will allow Nevada’s Unemployment Trust Fund to grow to $585 million from $409 million. That fund is used to pay employee unemployment insurance claims for most all employers.
The above applies to all Nevada employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes. Many Nevada nonprofits could save as much as 30 percent on their unemployment cost 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.