No businesses oppose NV unemployment insurance rate decrease
CARSON CITY, Nev. — Given that the Employment Security Division is planning to lower unemployment insurance tax rates, it probably wasn’t a surprise that no business owners showed up at a workshop on the proposal Wednesday, Oct. 23.
The workshop is held annually before the rates for the coming year are approved to give businesses a chance to comment and/or object.
Economist Jeremy Hays testified that Nevada’s UI Trust Fund now has more than $1.84 billion, the highest amount in state history. He said that’s enough to pay more than 17 months of benefits in a normal recession.
“Even under the worst case scenario, we have enough money to last just over a year,” he said.
Hays said Nevada’s economy is so strong that benefit payments are down to an average of just $23 million a month compared to more than $90 million during the depths of the recession just a few years ago.
It’s because of that economic health that the Employment Security Council recommended reducing the overall average tax rate two-tenths of a percent at its Oct. 3 meeting.
While that doesn’t sound like much, it would cut the total amount paid by more than 79,000 Nevada businesses by some $73 million next year.
The proposed rate will still generate some $600 million in tax revenue in 2020. After deducting projected unemployment benefit payments of $260 million, Hays said the remaining revenue would add $376 million to the Trust Fund unless a recession hits.
Without a recession, that would increase the total in the Trust Fund to more than $2 billion, enough money to cover a two-year normal recession.
Employment Security Administrator Kimberly Gaa is expected to adopt the new 1.65 percent rate at a Dec. 5 meeting. That new rate would take effect Jan. 1.
Kingvale Recreational Resort off Interstate 80 in Soda Springs, about eight miles from Donner Summit and 45 minutes or so west of Reno, has been listed for $5,999,000 by California Outdoor Properties.