Nevada businesses will not see an unemployment insurance (UI) tax rate change in 2022. The UI tax on employers will be 1.65% in 2022, the same tax rate that was in effect for 2021.
In October, the Employment Security Council recommended increasing the UI tax to 2.0% to maintain the Unemployment Trust Fund. However, after input from the business community, the decision was made to keep the rate the same to protect Nevada businesses while they continue to tackle the COVID-19 pandemic.
While the UI tax rate will remain the same, the state taxable wage base for 2022 will increase. Beginning January 1, 2022, the Nevada taxable wage base is $36,600 (up from $33,400 in 2021). The taxable wage base is calculated each year at 66 2/3% of the average annual wage paid to Nevada workers. While total wages paid to each employee must be reported each quarter, unemployment insurance taxes are only paid on an individual’s wages up to the taxable wage base during a calendar year. Any wages paid to an individual which exceed that amount during the calendar year are not taxed.
The foregoing information is provided to assist employers in understanding their obligations for 2022. Nevada Association of Employers (NAE) encourages employers to consult with their tax advisor for advice on implementing these obligations.
Need help administering unemployment? Consider participating in our unemployment insurance administration program. We have decades of experience with unemployment administration — from handling claims from inception through the appeals process to reviewing quarterly statements and rate notices for accuracy. The unemployment insurance process can be complex and represents a considerable risk to a business’ bottom line. Instead of facing this risk alone, enlist NAE, an experienced and trusted third-party administrator. Contact us for more information about our UI program.
