State unemployment insurance tax unchanged

Mathis Winkler

Tuesday, Nov. 27, 2001 | 9:31 a.m.

Nevada employers will continue to pay the same unemployment insurance tax in 2002 as they did this year.

Following an earlier recommendation by the state's Employment Security Council, Employment Security Division Administrator Birgit Baker set the rate on Monday.

While an average tax rate of 1.29 percent of an employee's wages will likely cause a $24.6 million dip in the state's unemployment trust fund over the next year, Baker said the fund will remain at an adequate level.

By the end of 2002, the fund will likely end up with $495.8 million. That's still $106.7 million more than required by state law, Baker said.

She added that she decided to keep the same rate despite concerns over rising unemployment numbers. More than 15,000 people lost their jobs following the Sept. 11 attacks. With an unemployment rate of 6.3 percent in October, Nevada experienced the steepest increase in unemployment in the country.

Carol Vilardo, president of the Nevada Taxpayer's Association, described the move as a "good decision."

She added that the state seemed to have enough money in its fund to keep it solvent.

Plus, "all of us hope that we're going to see employment levels rise again," said Vilardo, whose association represents mainly businesses and has about 800 members statewide.

By keeping the average tax rate the same, state officials said they hope to help businesses prevent further layoffs. The actual rate a business pays depends on how often people are laid off. It can be as little as 0.25 percent and goes up to 5.4 percent of an employee's wages.

No one came to support or protest Baker's decision. It was made during a meeting that was held in Carson City and broadcast live to the Grant Sawyer state building in Las Vegas.