Everything a Nevada company needs to know about paying unemployment insurance taxes.
If your small company employs people in Nevada, you must pay the Nevada unemployment insurance (UI) levy. The UI tax pays for unemployment insurance programs for qualifying workers. In Nevada, one of the key taxes that companies must pay is the state unemployment insurance levy. Nevada, unlike most other states, does not have state withholding taxes. Other essential employer taxes that are not mentioned here include federal unemployment insurance and withholding taxes.
Varied states have different UI tax policies and rates. Here are the fundamentals of Nevada’s UI tax.
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Become a member of the Employment Security Division.
As a Nevada employer, your small company must open a Nevada UI tax account with the Nevada Department of Employment, Training, and Rehabilitation’s Employment Security Division (ESD). You may open an account with the ESD either online or in person. You will be assigned a Nevada UI account number after you have enrolled.
To register online, go to the ESD website’s Employer Self Service (ESS) section and click on the link to establish a new firm. Use Form APP-01.00, Nevada Business Registration Form, to register on paper. (Note: Agricultural, domestic, and nonprofit employers must complete a Supplemental Registration Form.) Blank forms may be downloaded from the ESD website’s Forms section. There is no cost to register your company with IDES.
You must have a federal employer identification number to open a Nevada UI tax account (EIN). You may get an EIN by visiting irs.gov. In most cases, if you apply online, you will obtain your EIN very instantly. If you have not yet received an EIN, enter “PENDING” on your company registration form.
UI Tax Liability Regulations
In Nevada, most for-profit firms are subject to state unemployment insurance fees as soon as they:
paid $225 or more in compensation during a calendar quarter acquired their company from an employer subject to UI tax or became subject to the Federal Unemployment Tax Act (FUTA).
Different restrictions apply to agricultural (farm) workers, domestic (in-home) workers, and employees of certain (but not all) non-profit organizations, which are not included here.
One piece of good news is that state UI tax payments are often deductible from FUTA taxes.
Wage Structure and Tax Rates
Each employee’s salaries are subject to UI tax up to a certain yearly limit. In Nevada, this amount, known as the taxable wage base, rises slightly each year. It has recently neared and then surpassed $28,000.
The state unemployment insurance tax rate for new employers, often known as the normal starting tax rate, might alter from year to year. In recent years, the rate has been little less than 3%. Based on a “experience rating,” established employers are liable to a lower or higher rate than new firms. This includes, among other things, whether your company has ever had workers file claims for state unemployment benefits.
File UI Tax Reports and Payments on Time
UI tax reports and payments are required in Nevada on the last day of the first month after the end of the calendar quarter covered by the report.
Reports and taxes are due on the following day that is not a Saturday, Sunday, or legal holiday if the due date is a Saturday, Sunday, or legal holiday.
You have the option of filing your reports and payments online or on paper. Go to the Employer Self Service (ESS) area of the ESD website to file and pay online. You must first register a new online user account once you arrive. You may pay online with credit or debit via an Automated Clearing House (ACH). Use Form NUCS 4072, Employer’s Quarterly Contribution and Wage Report, to submit on paper. If the amount owed is less than $10,000, you may pay by check.
Even if you did not pay any compensation, you must submit quarterly reports. If you do not file, you will face a penalty.
Make a Public Notice (Poster)
You must put a notification (poster) about state unemployment claims in each workplace. The poster includes general information on who is eligible for unemployment benefits and how to submit a claim. You may download a notification that satisfies all legal requirements (Form ENG, Notice to Employees) from the Forms area of the ESD website.
Employees should not be misclassified as independent contractors.
Employers that hire independent contractors rather than employees are exempt from the UI tax. It is critical, however, that you should not misclassify an employee as an independent contractor. If you misclassify an employee, you may face penalties or fines.
Using Payroll Service Providers
You may decide that it is easier to delegate payroll obligations, including UI taxes, to an outside payroll agency. If this is the case, bear in mind that your firm, or even you personally, may be held directly liable for the faults committed by the outside company.
Further Information
This article simply covers the most fundamental aspects of Nevada UI taxes. Check the IRS and ESD websites for the most up-to-date information to avoid fines for errors. In addition to state unemployment insurance payments, companies must also pay federal unemployment insurance and withholding taxes, as well as record new hiring.