How to Pay Unemployment Insurance for Employees in Nevada

Everything employers need to know about paying unemployment insurance taxes in Nevada.

If your small business has employees working in Nevada, you’ll need to pay Nevada unemployment insurance (UI) tax. The UI tax funds unemployment compensation programs for eligible employees. In Nevada, state UI tax is one of the primary taxes that employers must pay. Unlike most other states, Nevada does not have state  withholding taxes. However, other important employer taxes, not covered here, include federal UI and withholding taxes.

Different states have different rules and rates for UI taxes. Here are the basic rules for Nevada’s UI tax.

Register With the Employment Security Division

As a Nevada employer, your small business must establish a Nevada UI tax account with the  Employment Security Division  (ESD) of the Nevada Department of Employment, Training and Rehabilitation. You can register for an account with the ESD either online or on paper. Once registered, you’ll be issued a Nevada UI account number.

To register online, go to the  Employer Self Service  (ESS) section of the ESD website and click on the link to register a new business. To register on paper, use Form APP-01.00,  Nevada Business Registration Form. (Note: A Supplemental Registration Form is required for agricultural, domestic, and nonprofit employers.) Blank forms are available for download from the  Forms section  of the ESD website. There is no fee to register your business with IDES.

Note:  To establish your Nevada UI tax account, you should have a federal  employer  identification  number  (EIN). You can apply for an EIN at  irs.gov. Generally, if you apply online, you will receive your EIN immediately. If you have not yet been issued an EIN, you can write “PENDING” on your business registration form.

Rules for UI Tax Liability

In Nevada, most for-profit employers are liable for state UI taxes as soon as they have either:

  • paid wages of $225 or more during a calendar quarter
  • acquired their business from an employer who was subject to UI tax, or
  • become subject to the Federal Unemployment Tax Act (FUTA).

Different rules, not covered here, apply to agricultural (farm) workers, domestic (in-home) workers, and employees of some (but not all) non-profit organizations.

One piece of good news is that state UI tax payments generally can be credited against your FUTA taxes.

Wage Base and Tax Rates

UI tax is paid on each employee’s wages up to a maximum annual amount. That amount, known as the taxable wage base, increases slightly every year in Nevada. In recent years, it has approached and then exceeded $28,000.

The state UI tax rate for new employers, also known as the standard beginning tax rate, also can change from one year to the next. In recent years, the rate has been just under 3%. Established employers are subject to a lower or higher rate than new employers depending on an “experience rating.” This means, among other things, whether your business has ever had any employees who made claims for state unemployment benefits.

File Scheduled UI Tax Reports and Payments

In Nevada, UI tax reports and payments are due by the last day of the first month following the close of the calendar quarter covered by the report. In other words:

Calendar Quarter

Due Date

January, February, March

April 30

April, May, June

July 31

July, August, September

October 31

October, November, December

January 31

If the due date is a Saturday, Sunday, or legal holiday, reports and taxes are due on the next day which is not a Saturday, Sunday, or legal holiday.

You can file your reports and payments online or on paper. To file and pay online, go to  Employer Self Service(ESS) section of the ESD website. Once there, you’ll first have to create a new online user account. You can pay electronically using Automated Clearing House (ACH) credit or debit. To file on paper, use Form NUCS 4072,Employer's Quarterly Contribution and Wage Report. You can pay by check if the amount due is less than $10,000.

You must file quarterly returns even if you didn’t pay any wages. You will be subject to a penalty if you fail to file.

Post a Notice (Poster)

You are required to post a notice (poster) regarding state unemployment claims in each work place. The poster provides basic information about who is eligible for unemployment benefits and how to file an unemployment claim. You can download a notice (Form ENG,  Notice to Employees) from the  Forms section  of the ESD website that meets all legal requirements.

Do Not Misclassify Employees as Independent Contractors

Employers who use independent contractors rather than hiring employees are not subject to the UI tax. However, it’s important that you do not misclassify an  employee  as an independent contractor. If you do misclassify an employee, you could be subject to penalties or fines.

Using Payroll Service Companies

You may decide that it’s easiest to hand over responsibility for payroll, including UI taxes, to an outside payroll service. If so, keep in mind that your business, or even you personally, may still be held directly responsible for mistakes made by the outside company.

Additional Information

This article touches on only the most basic elements of Nevada UI taxes. Avoid possible penalties for making mistakes by checking both the IRS and ESD websites for the latest information. In addition to state UI tax, employers have other responsibilities not covered in this article, such as federal UI and withholding taxes, and required reporting of new hires. You can get more information about other  small  business  tax issues  in other articles on Nolo.com.

Talk to a Tax Attorney

Need a lawyer? Start here.

How it Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you
FEATURED LISTINGS FROM NOLO
Swipe to view more
NEED PROFESSIONAL HELP ?

Talk to a Tax attorney.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you