Unemployment insurance to remain same

Friday, Nov. 21, 2003 | 11:05 a.m.

CARSON CITY -- Birgit Baker, director of the state Division of Employment Security, today set the rate for 2004 paid by Nevada employers into the jobless fund at 1.29 percent, the same as it has been since 2001.

Employers in Nevada will pay the tax on the first $22,000 in wages of an employee and will be assessed 0.05 percent to finance a job training program.

At a public hearing to set the rate, Baker said, "The forecast shows a slow but steady brightening of the Nevada economic horizon."

She said the continued rate will bring in enough money to pay out unemployment benefits for the coming year and still keep the fund solvent.

The fund has $434.2 million and it is predicted to have $424.2 million next year. Even though the balance would be lower next year, the fund would meet the annual solvency test coming in $36.3 million higher than required.

The division estimates it will receive $276 million in 2004 in taxes and interest and will pay out $286 million in jobless benefits. The average weekly payment to an unemployed division will be $240 next year compared to the present $235, the division predicted.

A business pays the unemployment tax based on the turnover of workers. The rates range from 0.25 percent to 5.4 percent for those with the highest turnover.

The division said 48 percent of the 26,728 employers pay the lowest rate of 0.25 percent and only 3.3 percent pay the highest rate.

New employers, who have been under the system less than four years, all pay a 3 percent rate. There are 21,735 businesses in the "new employer" category.