STATE OF NEVADA
Department of Employment, Training and Rehabilitation
EMPLOYMENT SECURITY DIVISION
2015
ESTIMATED TAX RATE SCHEDULES
For
Unemployment Insurance
Edgar Roberts – Chief of Contributions
Employment Security Council Meeting and Regulation Workshop
October 8, 2014
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2
Employment Security Council
 ESD Administrator sets the tax rates
each year by adopting a regulation.
(NRS 612.550.5)
 The role of the Employment Security
Council is to recommend a change in
contribution rates whenever it becomes
necessary to protect the solvency of the
Unemployment Compensation Fund.
(NRS 612.310)
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Regulatory Process
 October 8, 2014 – Employment Security
Council Meeting and Regulation Workshop
to provide a recommendation for the
2015 tax schedule to ESD Administrator
 ESD will submit a proposed regulation to
LCB
 October 28, 2014 – Small Business
Workshop
 December 3, 2014 – Public Hearing
 Adoption of annual regulation (NAC
612.270) by December 31, 2014
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FEDERAL UNEMPLOYMENT TAX = FUTA
 FUTA imposes a federal payroll tax on all employers of
6.0% of each employee’s wages, up to $7,000 ($420
per year)
 Employers receive a credit of 5.4%, if the employer
participates in a state unemployment program
approved by the U.S. Secretary of Labor
 Net cost under normal circumstances is 0.6% X $7,000
= $42 per employee
 As of 2013, Nevada’s bonding solution has restored the
full FUTA credit for Nevada employers.
 State UI programs perform a certification process with
the IRS to validate SUTA payments for FUTA credits.
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STATE UNEMPLOYMENT TAX = SUTA
THE ONLY PURPOSE OF THE STATE TAX IS TO PAY
UNEMPLOYMENT BENEFITS. ANY OTHER USE IS
PROHIBITED.
 Paid entirely by employers.
 Tax rates vary based on the employer’s previous
experience with unemployment.
 Funds must be deposited with the U.S. Treasury.
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Experience Rating System
 NEW EMPLOYER RATE
2.95% of Taxable Wages
 ANNUAL TAXABLE WAGE BASE
2013 - $26,900
2014 - $27,400
2015 - $27,800
 EXPERIENCE RATING
3½ to 4 YEARS
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Eligible Employer Rates
Rate Class
Rate
2014 Maximum Cost
Per Employee
Taxable Limit $27,400
2015 Maximum Cost
Per Employee
Taxable Limit $27,800
18 .................
17 .................
16 .................
15..................
14 .................
13 .................
12 .................
11 .................
10 .................
9 .................
8 .................
7 .................
6 .................
5 .................
4 …..............
3 .................
2 .................
1 .................
5.40%....................$1,479.60…………………………..$1,501.20
5.05%....................$1,383.70…………………………..$1,403.90
4.75%....................$1,301.50 ………………..……..…$1,320.50
4.45%....................$1,219.30…………………………..$1,237.10
4.15%....................$1,137.10…………………………..$1,153.70
3.85%....................$1,054.90...………………………..$1,070.30
3.55%....................$ 972.70……..…….…………..…$ 986.90
3.25%....................$ 890.50…………………………..$ 903.50
2.95%....................$ 808.30………………………..…$ 820.10
2.65%....................$ 726.10………………………..…$ 736.70
2.35%....................$ 643.90…………………………..$ 653.30
2.05%....................$ 561.70…………………………..$ 569.90
1.75%....................$ 479.50………………………..…$ 486.50
1.45%....................$ 397.30…………………………..$ 403.10
1.15%....................$ 315.10…………………………..$ 319.70
0.85%....................$ 232.90…………………………..$ 236.30
0.55%....................$ 150.70…………………………..$ 152.90
0.25%....................$
68.50…………………………..$
69.50
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RESERVE RATIO
CONTRIBUTIONS PAID (MINUS) BENEFITS CHARGED
(DIVIDED BY)
AVERAGE TAXABLE PAYROLL FOR PRIOR 3 YEARS
(2011, 2012, 2013)
=
RESERVE RATIO
EXAMPLE
$60,000 - $20,000 = $40,000/$400,000 = .10 or 10% Reserve Ratio
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Setting the Annual Rate
Schedule
 Solvency of the state UI Trust Fund is
measured on September 30th
 Projections are calculated for the next
calendar year
Number of active employers
Amount of taxable payroll
Amount of state UI benefits that will be paid
Estimated revenues required for benefit
payouts and trust fund solvency in the next
calendar year
 Optional schedules are developed with
variable average tax rates and revenue
projections




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10
ESTIMATED REVENUE AND EMPLOYER DISTRIBUTION
CALENDAR YEAR 2015
RESERVE RATIO
From
To
Class
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
<
-14.1
-12.5
-10.9
-9.3
-7.7
-6.1
-4.5
-2.9
-1.3
0.3
1.9
3.5
5.1
6.7
8.3
9.9
11.5
-14.1
-12.5
-10.9
-9.3
-7.7
-6.1
-4.5
-2.9
-1.3
0.3
1.9
3.5
5.1
6.7
8.3
9.9
11.5
>
Total Eligible Employers
New Employers
TAX
RATE
TAXABLE WAGES
($MILL)
%
REVENUE
($MILL)
5.40%
5.05%
4.75%
4.45%
4.15%
3.85%
3.55%
3.25%
2.95%
2.65%
2.35%
2.05%
1.75%
1.45%
1.15%
0.85%
0.55%
0.25%
3,206
231
316
306
395
472
637
785
831
1,198
1,429
1,852
2,542
3,051
3,744
3,925
3,740
8,668
8.6%
0.6%
0.8%
0.8%
1.2%
1.3%
1.7%
2.1%
2.2%
3.2%
3.8%
5.0%
6.8%
8.2%
10.0%
10.5%
10.0%
23.2%
$1,198.17
$129.73
$155.17
$216.23
$142.45
$226.40
$282.37
$386.67
$473.16
$1,070.98
$1,381.33
$2,381.09
$4,629.89
$4,759.63
$4,856.30
$2,007.13
$590.18
$552.12
4.7%
0.5%
0.6%
0.8%
0.6%
0.9%
1.1%
1.5%
1.9%
4.2%
5.4%
9.4%
18.2%
18.7%
19.1%
7.9%
2.4%
2.1%
$64.70
$6.55
$7.37
$9.62
$5.91
$8.72
$10.02
$12.57
$13.96
$28.38
$32.46
$48.81
$81.02
$69.01
$55.85
$17.06
$3.25
$1.34
37,328
22,799
100.0%
$25,439.00
$1,845.00
100.0%
2.95%
$476.60
$54.42
TOTAL
AVERAGE UI RATE 1.95%
EMPLOYERS
#
%
60,127
CEP 0.05%
BOND RATE 0.56%
$27,284.00
TOTAL TAX RATE 2.56%
The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency
$531.02
11
2
ESTIMATED REVENUE AND EMPLOYER DISTRIBUTION
CALENDAR YEAR 2015
RESERVE RATIO
From
To
Class
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
<
-13.7
-12.1
-10.5
-8.9
-7.3
-5.7
-4.1
-2.5
-0.9
0.7
2.3
3.9
5.5
7.1
8.7
10.3
11.9
-13.7
-12.1
-10.5
-8.9
-7.3
-5.7
-4.1
-2.5
-0.9
0.7
2.3
3.9
5.5
7.1
8.7
10.3
11.9
>
Total Eligible Employers
New Employers
TAX
RATE
TAXABLE WAGES
($MILL)
%
REVENUE
($MILL)
5.40%
5.05%
4.75%
4.45%
4.15%
3.85%
3.55%
3.25%
2.95%
2.65%
2.35%
2.05%
1.75%
1.45%
1.15%
0.85%
0.55%
0.25%
3,256
254
299
356
388
516
659
820
916
1,266
1,505
2,021
2,648
3,263
3,783
3,937
3,598
7,843
8.8%
0.7%
0.8%
1.0%
1.0%
1.4%
1.8%
2.2%
2.5%
3.4%
4.0%
5.4%
7.1%
8.7%
10.1%
10.5%
9.6%
21.0%
$1,218.52
$150.09
$127.19
$226.40
$165.35
$249.30
$295.09
$409.56
$582.55
$1,119.31
$1,447.47
$3,006.88
$4,815.60
$5,115.78
$3,999.01
$1,561.95
$470.62
$478.33
4.8%
0.6%
0.5%
0.9%
0.7%
1.0%
1.2%
1.6%
2.3%
4.4%
5.7%
11.8%
18.9%
20.1%
15.7%
6.1%
1.9%
1.8%
$65.80
$7.58
$6.04
$10.07
$6.86
$9.60
$10.47
$13.31
$17.18
$29.66
$34.01
$61.64
$82.37
$74.18
$45.99
$13.28
$2.59
$1.14
100.0%
$25,439.00
$1,845.00
100.0%
2.95%
37,328
22,799
$491.77
$54.42
TOTAL
AVERAGE UI RATE 2.00%
EMPLOYERS
#
%
60,127
CEP 0.05%
BOND RATE 0.56%
$27,284.00
TOTAL TAX RATE 2.61%
The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency
$546.19
12
SUMMARY
Estimated Distribution of Employers
Calendar Year 2015
Page #
1
Range of
Reserve Ratios
Increments
Average UI Rate
CEP
Bond Rate
Total
REVENUE
(in millions)
2
3
4
5
6
-14.6
11
-14.3
11.3
-14.1
11.5
-13.7
11.9
-13.4
12.2
-13.1
12.5
1.6
1.6
1.6
1.6
1.6
1.6
1.85%
0.05%
0.56%
2.46%
1.90%
0.05%
0.56%
2.51%
1.95%
0.05%
0.56%
2.56%
2.00%
0.05%
0.56%
2.61%
2.05%
0.05%
0.56%
2.66%
2.10%
0.05%
0.56%
2.15%
$505.75
$519.66
$531.02
$546.19
$560.22
$573.41
Benefits expected to be paid in calendar year 2014 - $376 million
ELIGIBLE EMPLOYERS
5.40%
5.05%
4.75%
4.45%
4.15%
3.85%
3.55%
3.25%
2.95%
2.65%
2.35%
2.05%
1.75%
1.45%
1.15%
0.85%
0.55%
0.25%
Total
3,135
230
284
313
375
430
586
736
803
1,074
1,388
1,677
2,313
2,875
3,563
3,902
3,792
9,852
3,170
230
308
311
391
456
603
782
805
1,155
1,404
1,793
2,426
2,996
3,673
3,904
3,803
9,118
3,206
231
316
306
395
472
637
785
831
1,198
1,429
1,852
2,542
3,051
3,744
3,925
3,740
8,668
3,256
254
299
356
388
516
659
820
916
1,266
1,505
2,021
2,648
3,263
3,783
3,937
3,598
7,843
3,302
268
300
371
408
523
711
815
963
1,330
1,521
2,197
2,713
3,451
3,824
3,918
3,673
7,040
3,347
285
311
366
426
572
730
800
1,065
1,375
1,629
2,259
2,847
3,544
3,868
3,840
4,139
5,925
37,328
37,328
37,328
37,328
37,328
37,328
The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency