UI Tax Services

A: In a few states, employees do contribute a small share. However, during the formulation of the federal/state system, the consensus among the states was that this would lead to assertions that the employee has a vested right to the money. The intent was to make benefit entitlement contingent only upon certain conditions regarding employment and unemployment. If the employer bears the entire cost, they will more likely participate in the benefit entitlement process to control costs and limit payment to the truly unemployed.

Q: How can employers control tax costs?

A: Please see the information listed at UI Tax Services - Control Costs.

Q: What is the Career Enhancement Program (CEP)?

A: This is a separate state program established to provide training to unemployed persons to foster job creation, minimize unemployment costs for employers, and meet the needs of employers for skilled workers.

Q: How are employer tax rates determined?

A: Please see the information listed at UI Information - UI Rates.

Q: How are employers notified of rate changes?

A: Each December, employers receive a Notice of Employer’s Contribution Rate Statement advising them of their tax rate for the following calendar year. The notice includes accumulated taxes paid, benefits charged, average taxable wages for the prior three years, and calculation of their “reserve ratio”.

Employers should examine their rate notices carefully. They have 15 days from the date of mailing to request a review. Employers with questions regarding their rate notice should contact the Contributions Section, Rate Unit at (775) 684‑6310.

Q: What is an Experience Rating and how does it affect tax rates?

A: Please see the information listed at UI Tax Services - Experience Record.

Q: What is the self-insurance or "reimbursement" option?

A: The law provides state and local government, certain nonprofit employers (those who are exempt under Section 501(c)(3) of the Internal Revenue Code), and Indian Tribes an option to pay quarterly taxes, or they may elect to be self-insured under the "reimbursement" method. If the "reimbursement method is chosen, the employer must file quarterly wage reports, but does not pay quarterly taxes for unemployment, nor for the Career Enhancement Program (CEP).

When choosing the "reimbursement" method, instead of paying quarterly taxes, an employer must reimburse the state on a quarterly basis for all unemployment benefits charged to their account. The Employment Security Division administers all claims for reimbursement employments in the same manner as for tax paying employers. If an employer elects the "reimbursement" method, they cannot change back to the taxing method for at least two calendar years, and must notify the division no later than December 1, to be effective for the following calendar year.

Q: How do employers know if unemployment benefits have been charged to their UI Employer Account?

A: Benefit Charge Statements are mailed to employers at the end of every calendar quarter. The statement will list each former employee who has collected unemployment benefits during the quarter and the amount of unemployment benefits paid. The charge statement details the dollar amount being charged to the employer's account and the percentage of unemployment benefits paid to each individual charged to that employer.

Q: Why are the experience records of base period employers charged for employees who quit without good cause?

A: Refer to page 52 of the Nevada Unemployment Compensation Program, Employer Handbook. Employer Handbook

Q: If an employee quits or is fired, can they draw benefits?

A: If the division determines that the employee either quit without good cause or was fired for misconduct in connection with their work from their last employer (or in some cases their next to last employer), they will be disqualified. Accurate employer records, timely responses and participation in the benefits process are vital to the division’s ability to make the correct decision.

Q: If an employer has a written agreement with their employees stating they are independent contractors, does that exempt them from unemployment tax?

A: A written contract does not necessarily establish independent contractor status. In fact, any agreement by an individual which waives his rights to benefits is void (NRS 612.700). And while the written contract provisions may be considered in any determination, the conditions described in NRS 612.085 must also be met in fact.

Q: If an employer has workers that meet all the IRS requirements of an independent contractor, does that exempt them from state unemployment taxes?

A: Refer to page 9 of the Nevada Unemployment Compensation Program, Employer Handbook. Employer Handbook

If in doubt, contact the Contributions Section at (702) 486‑0250 for additional assistance.

Q: Are "Cafeteria" and 401k plans reportable wages?

A: Yes. Amounts deducted from employees' gross salaries to pay for these items are wages. If, however, the employer makes a matching contribution to an employee's 401k plan, the amount contributed by the employer are not wages.

Q: Why do officers and sole shareholders of a subchapter S Corporation have to pay taxes on themselves?

A: A corporation is a separate legal entity and thus a separate “employing unit” under Nevada Unemployment Compensation Law. Therefore, any individual performing services for wages is an employee of the corporation. Subchapter S status pertains to federal income tax laws and has no bearing on state law. Unemployment compensation is an insurance program; and while the likelihood of drawing benefits may be less than in other situations, it is still possible, if all other requirements are met.

Q: If an employer has already paid taxes on an employee in another state and then transfers the employee to Nevada, are those wages considered when calculating non-taxable wages?

A: Yes, as long as he continues to work for the same employer.

Q: Why do employers have to report tips separately on quarterly tax reports?

A: Tips are included in a claimant's earnings when determining entitlement to benefits and in what amounts. However, the maximum weekly benefit amount changes each year and is equal to 50 percent of the average weekly wage paid to Nevada workers. The law requires that tips be excluded from the calculation of the maximum weekly benefit amount. Reporting tips separately is important for employers because it reduces overall costs and tax rates.

Q: What posters and notices are required by Nevada law regarding unemployment insurance?

A: Each employer is required to post a Notice to Employees (form NOTICE ENG , NOTICE SP) at each work place and must provide a leaflet, Information for the Unemployed Worker (form INFO ENG , INFO SP), to each employee who separates from employment.

Q: What needs to be done if an employer sells their business?

A: If an employer sells their business, they need to notify the division immediately in writing. Within 10 days of sale or change in ownership, they must file a final Employer's Quarterly Contributions and Wage Report and pay any contributions, forfeits, or interest due.

Q: What needs to be done if acquiring an existing business?

A: When acquiring an existing business, you must complete a Nevada Business Registration (NBR) form or register online. Upon registering the acquisition, the Employment Security Division will send you a Notice of Eligibility/Application for Transfer of Experience Record. You may either pay unemployment insurance taxes at the new employer rate of 2.95 percent (.0295) of taxable wages for a period ranging from 14 to 17 calendar quarters (the same rate as a new business), or apply to transfer the experience record from the previous owner and pay at the tax rate of the previous owner. Such a transfer requires the mutual written consent of the buyer and seller.

Employer Self Service (ESS):

Q: Who can access the online employer portal?

A: Portals can only be accessed by employers and their agents who have created an online account.

Q: What services are available through the online portal?

A: Both interactive and inquiry functions are available. Listed below are the services currently available:

· Tax and Wage Reporting – Submit your Employer's Quarterly Tax & Wage Report or Reimbursable Employer's Quarterly Wage Report using one of the methods indicated below:

o EFW2 File Upload – This option allows employers/agents to upload the quarterly wage detail and summary data utilizing State/Federal specifications based on the Social Security Administration Electronic Filing W2 format.

o Enter Report Using UInv – This option allows manual data entry of all the required data elements and is recommended for employers with less than 100 employees. The system reduces data entry by pre-populating the employee SSN and name fields for employers who have previously submitted Wage Reports. The employer/agent can add or delete employees from this initial listing and must manually enter the required payroll amounts for each employee on the wage screen which will prepopulate the summary information.

o Wage File Upload - This option allows the employer/agent to upload a Comma Separated Value (CSV) or a tab delimited file. To complete the quarterly filing requirements the employer/agent will need to enter the summary report using UInv. To complete the summary report, the employer will need to log into their online ESS portal. Then they will need to choose File Reports/Reporting Options/Enter Report in UInv/Contribution Report Only.

· Online Payments - Make a payment on an Employer Account

· View/Update Account Information – View/Update employer account information including the following:

o Owner Information

o Notification Address Information

o Business Location Information

o Business Records Information

o Account Balances - View current account balance

o Authorized Agents - view a listing of agents currently authorized to access your account information

o Web Contact Information

o Web Reporting and Payment History

o Rate History

· Print Previously Filed Electronic Transmissions

o Employer's Quarterly Contribution and Wage Report

o Nevada Business Registration

· Change Password/Update Web Contact

· Reset Password

· View Reporting and Payment History Confirmations

Q: What should employers do if they experience technical difficulty using the online application?

A: If an Employer experiences an error during the use of the services provided through their online portal, they should capture a screenshot if possible or make a note of the error message and contact the appropriate help desk. Please see the Division Directory of UI Tax Contacts to determine the unit to call for further information.

Q: What should employers do if they have questions regarding an online application?

A: Help is available online for pertinent steps in each application. In addition, employers can access the Guide to Online Employer Self Service. If employers still have additional questions, they should refer to the Division Directory of UI Tax Contacts to determine the unit to call for further information.

Q: If the application "timed out" while an employer is using it, what should they do?

A: For security reasons, if each screen is not completed within a reasonable period of time, a “time out” occurs and you will be disconnected. The user will need to log back into their online portal account and the system will return them to the end of the last completed section that was saved. Any information that was lost will need to be completed again.

Q: Why are employers not able to retrieve their saved data online?

A: Nevada Business Registration data can be retrieved for up to 120 days from the initial date of submission. Employers Quarterly Contribution and Wage Report data can only be retrieved for 31 days from the initial submission date. Once these dates have passed, they will lose all information and must begin the application over again.

Online Employer Registration:

Q: What is online employer registration?

A: Online registration is an internet filing application that allows businesses to register for Nevada unemployment insurance taxes online via the Internet.

Q: Are employers required to use the online registration process?

A: Employers registering their business for the first time are encouraged to use the online process to receive their employer account number immediately upon completion of the registration process.

Employers who are unable to complete their registration online can send in a Nevada Business Registration paper form (Nevada Business Registration Form) and it will be processed by the Division. Once processed, the employer will receive their employer account number via the mail.

Q: What types of business entities can an employer register?

A: The following types of business entities can be registered online:

· Sole Proprietor
· Partnership
· Corporation
· Limited Liability Entities
· Non-profit organization-501 (c) (3)
· Association
· Governmental
· Other (trust, estate, receivership, etc.)

Q: Who cannot register online?

A: Employers will not be allowed to register more than 30 days in advance of their first anticipated payroll. They will not be allowed to register if they are exempt from the Nevada Unemployment Compensation Law and do not wish to voluntarily elect coverage. If an employer has used their FEIN for a previous account, they will be required to file and submit a paper Nevada Business Registration form. Nevada Business Registration Form

Q: Who needs to register?

A: All new or acquired businesses paying wages in Nevada are required to register with the Employment Security Division. Registration is also required for an existing business, which has changed ownership or entity type, i.e., sole proprietor to a partnership, or a partnership to a corporation, etc.

Q: Who is subject to Nevada Unemployment Taxes?

A: The law provides different liability provisions for various categories of employers. Businesses will be classified as one of the following:

· General Employer – Most employment is considered general employment. This includes all types of work except agricultural services, domestic services, and services performed for 501(c)(3) Non-profit organizations, Indian Tribes, or Governmental Entities. Liability provisions are:

o Employer has paid wages of $225 or more during a calendar quarter.

o Employer is subject to the Federal Unemployment Tax Act (FUTA).

o Employer acquired their business from another employer who was subject.

· Agricultural Employer – Services performed in connection with cultivating the soil or in raising or harvesting any agricultural or horticultural commodity. Liability provisions are:

o Employer paid total cash wages of $20,000 or more in a calendar quarter or have 10 or more employees in 20 different weeks during the calendar year.

o Employer is subject to the Federal Unemployment Tax Act (FUTA).

· Domestic Employer – Services performed in a private home or local college club or local chapter fraternity or sorority. Domestic employees include such workers as chauffeurs, cooks, babysitters, gardeners, maids, butlers, and home nurses. Liability provisions are:

o Employer paid total cash wages of $1,000 or more in a calendar quarter to workers who perform domestic services.

o Employer is subject to the Federal Unemployment Tax Act (FUTA).

· Nonprofit Employer – Employers exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and operate exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or for the prevention of cruelty to children or animals. Liability provisions are:

o Employers employ four or more individuals for a portion of a day in each of 20 different weeks during the calendar year.

o Non-profit Employers have the option to pay contributions based upon payroll or reimburse for benefits paid to former employees.

· Government or Political Subdivision Employer – Agency or department of State or Local Government. All political subdivisions, counties, cities, townships, districts of any nature (including schools), and their instrumentalities. Liability provisions are:

o Employer has paid wages of $225 or more during a calendar quarter.

o Employer is subject to the Federal Unemployment Tax Act (FUTA).

o Governmental Employers have the option to pay contributions based upon payroll or reimburse for benefits paid to former employees.

· Indian Tribe Employer – Employment performed in the employ of an Indian Tribe or of any subsidiary or business enterprise wholly owned an Indian Tribe. Liability provisions are:

o You have paid wages of $225 or more during a calendar quarter.

o You are subject to the Federal Unemployment Tax Act (FUTA).

Q: Are employers provided with their Nevada Unemployment Insurance Account Number immediately when they use online registration?

A: In many cases employers will immediately obtain their Nevada Unemployment Insurance Account Number. Occasionally an application may require manual review. In these instances, employers will be notified by mail of the status of their application.

Q: How long will the online registration process take?

A: The registration process is designed in a wizard fashion to aid in guiding employers. The time it will take to complete the process depends on the complexity of the business organization. The process could take as little as ten minutes. Employers should gather all pertinent information before beginning the registration process.

Q: How can an employer correct an error on a previous page when completing the online registration?

A: Employers will be provided with a "Certification" screen upon the completion of the last section of their online registration. This screen will detail all of the information input by the user in each section and provide an "Edit" option for any changes that need to be made prior to submission.

Q: How can an employer get a copy of the Internet Registration?

A: Employers may print a copy of their Internet Registration prior to submission.

Tax and Wage Reporting:

Q: Are employers required to use the online tax and wage reporting service to file quarterly reports?

A: Yes, effective July 1, 2018, regulation requires that employers in Nevada file all quarterly wage and tax reports electronically per Nevada Administrative Code (NAC) 612.035.

Employer’s unable to comply with this regulation may submit a Waiver Request Form for Administrator approval. Approval or denial of this request is determined by the criteria outlined in NAC 612.035.

Additional information pertaining to the electronic filing regulation and requirements can be obtained by contacting the Employer Account Service Unit at (866) 429-9757.

Q: Will employers still receive their filing forms through the mail?

A: No, Employer Quarterly Contribution and Wage Reports will no longer be mailed. Reports are required to filed electronically as of July 1, 2018.

Q: What constitutes wages?

A: In general, all remuneration paid for personal services is considered "wages" and must be reported. Payments may be in the form of cash or any form other than cash, such as meals, lodging, or merchandise. Certain types of payments are often mistakenly considered exempt by employers. For more detailed information please see the Employer Handbook.

Q: Are tips reportable as wages?

A: Yes, tips are reportable and should be listed separately and included in the total wage calculation.

Q: Are employers required to report Corporate Officer wages?

A: Yes, salaries and other payments made to corporate officers for their services to the corporation are wages. This includes officers of "subchapter S" corporations, as well as regular corporations.

Q: What are nontaxable wages?

A: Please see the information listed at Quarterly Reporting Information - Taxable Wage Base.

Q: What does it mean when the taxable wage figure does not match the estimated taxable wage amount indicated in the online application?

A: The calculated taxable wage figure is based on each individual employee’s gross wages reported by the employer to this department for the current calendar year. The following may attribute to these figures being different:

· Wages reported to another state.

· Wages paid by an employer’s predecessor.

Employers should verify the calculated figure against their records and if inaccurate due to one of the above listed bullet points, override this field and enter their own taxable wage amount. If inaccurate for any other reason, please contact the Employer Account Services Unit for further assistance at (866) 429‑9757.

Q: If an employee is required to report to another state; can the employer carry these wages over for the purpose of taxable wage computation?

A: Yes, if the employees are transferred to Nevada and continue to work for the same employer. Note that wages reported to other states will not be included in the estimated nontaxable wage amount automatically calculated by the online application.

Q: Can employers make online corrections to previously filed reports?

A: Online changes can only be made on the Quarterly Report summary information. We are currently unable to process wage item corrections online due to possible pending benefit charges. Employers must complete the Statement to Correct Form (RPT7833) for these types of changes.

Q: Is it necessary for an employer to file an Employer’s Quarterly Contribution and Wage Report if they do not have any employees during the quarter?

A: Yes, employers must file a report if their Nevada Unemployment Account status is active. If their business closes, or if they anticipate having no employees in the future, they may close their account by submitting a written statement to the Division or by contacting the Online Registration Helpdesk at (866) 429‑9758.

Q: Are late fees assessed for late report filings?

A: Yes, employers who file their report after the delinquent date must pay the following penalties:

· Forfeit of $5 if one or more days late filing the report.

· Additional charges for late filing of report after 10 days delinquent 1/10 percent (.001) of taxable wages after 10 days, for each month or part of a month that the report is delinquent.

· If taxes are not paid timely, the employer must pay interest of 1 percent (.01) of UI contributions (taxes) due for each month or part of a month that the payment is delinquent. No interest is charged for delinquent CEP taxes.

Q: When are the delinquent dates for each quarter?

A: Please see the information listed at Quarterly Reporting Information - Delinquent Dates.

Browser Information and Settings:

Q: Is the Employer Self Service compatible with all browsers and versions?

A: Employer Self Service (ESS) works with Internet Explorer 5.5 or higher, Chrome and Firefox. ESS may not run on Safari browsers. Use of this application with other browsers may produce unpredictable results. System is not compatible with WebTV.

Q: Is the Employer Self Service compatible with all computers?

A: Employer Self Service may not run on some Macintosh Computers. Mobile web is not currently supported and may produce unpredictable results. This includes iPads, iPhones, tablets, smart phones and other mobile devices.

Q: What about security settings?

A: Employers Internet Options-Security should be set to MEDIUM or lower and must have JavaScript and Cookies enabled. Popup-blocking software must be disabled when using Internet Employer Registration.

TIP: If the employer disables the primary browser they are using on the popup software options screen/control panel, this may enable them to use the Unemployment Insurance Tax Services.

Employers who have additional questions or need assistance can contact the division at (775) 684-6300.