Nevada Unemployment Insurance costs to rise

Employers will pay more unemployment insurance taxes in 2011. To cover the shortfall in Nevada’s unemployment fund Nevada employers will get a little surprise in January. According to an article in the Nevada Appeal, “Through the end of September this year, the state collected $570 million from employers but paid out $1.8 billion.”  This means that the state of Nevada has to borrow the rest from the Federal Government and does not expect to have it paid back until 2018.  An average 2% increase in the unemployment rate means approximately a 33% increase in overall taxes paid. How can you reduce your unemployment rate? Control turnover. Employers only pay unemployment taxes on the first $27,000 of gross wages for each employee.  So if your business has a lot of turnover  And contrary to popular belief unemployment insurance is never paid by the employee, it’s an employer paid tax. Finally, document the circumstances surrounding an employee’s termination. Sometimes employers can contest the unemployment charge but proper documentation is necessary.