47°F
weather icon Clear

Nevada businesses won’t see hike in unemployment tax next year

Gov. Steve Sisolak announced some relief to businesses Wednesday: The unemployment insurance tax — charged to Nevada’s employers — will not increase next year, despite a recommendation by Nevada’s Employment Security Council to raise the tax.

“Since 2019, the average tax rate has declined to its lowest level in more than a decade, and we intend to keep it low,” Sisolak said in a statement. “I appreciate the hard work of the Employment Security Council and the Employment Security Division administrator to hear from all the stakeholders and come to a conclusion that protects Nevada’s businesses in this critical moment.”

The Employment Security Council voted last month to recommend raising the average UI tax rate by one-third of a percent from its current 1.65 percent to 2 percent — a move that quickly drew criticism from businesses as it meant a potential tax increase of $130 more per employee.

The recommendation was passed along to ESD Administrator Lynda Parven, who has the authority to accept the council’s proposed increase or choose a different rate.

She’s now expected to make the regulation to keep the 1.65 percent tax rate another year. It will then go before the ESC on Dec. 18, 2022 and when formally approved the tax rate will go into effect Jan. 1, 2023.

Henderson Chamber of Commerce President and CEO Scott Muelrath welcomed Sisolak’s announcement.

“Now is not the time to make Nevada a more expensive place for job creators to do business,” said Muelrath. “We’re proud that our advocacy work on this issue resulted in real solutions for all of our member businesses, many of whom continue to struggle during this time.”

Keeping the current average UI tax rate at 1.65 percent for another year means employers will continue to pay about $622 per employee in 2022, compared with $750 per employee at the proposed 2 percent rate, according to the Department of Employment, Training and Rehabilitation.

It also means the state’s trust fund will grow at a slower pace to $561 million next year as opposed to an estimated $675 million if employers were paying an average UI tax rate of 2 percent.

But with businesses facing a series of headwinds from increased costs of supplies, higher shipping costs and difficulty finding workers, nearly all business owners who spoke during a virtual hearing last month argued for keeping the rate at 1.65 percent for another year.

Parven said in a news release Wednesday that the “public comment process worked.”

“We are open to hearing from our constituents and adjusting as needed to ensure the success of all Nevadans,” she said.

Contact Subrina Hudson at shudson@reviewjournal.com. Follow @SubrinaH on Twitter.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Tonopah will build new $15.2M elementary near town high school

Tonopah will create a centralized learning campus for pre-k through 12-grade students by constructing a new elementary on 5.5 acres near the town’s high school.

Funding will help save endangered Pahrump poolfish

Bureau of Land Management officials have worked with other agencies over the past five years to improve habitats for the threatened fish, which can be found in three locations at the Shoshone Ponds about 30 miles south of Ely.

Fairgrounds parking lot will be used for motorcycle trainings

The Veterans of Foreign Wars Riders Group of Pahrump is expected to begin hosting motorcycle training sessions at the parking lot of the Pahrump Fairgrounds.

2 transported to hospital after crash

One person was transported by air to UMC Trauma, while another was transported to Desert View Hospital following a two-vehicle collision at the intersection of Gamebird Road and Winchester Avenue just after 11 a.m. on Tuesday, Jan. 18.

 
NBC exhumes Ted Binion case on ‘Dateline’ episode

Casino magnate Ted Binion was found dead in September 1998, but many believe he buried treasure at his Pahrump property.

Rise of COVID-19 cases have canceled visits at Nevada prisons

Following a sharp increase in COVID-19 infections, the Nevada Department of Corrections suspended inmate visitations until further notice. The agency did not indicate whether inmate and attorney visits are part of the suspension period.

 
Staffing crisis at area hospitals continues

An increasing number of sick employees and an continuing rise in COVID-19 hospitalizations have extended a staffing crisis in Southern Nevada hospitals for a second week.