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Quarterly Reporting Information |
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Contents:
Quarterly Contribution and Wage Reports: Every quarter, all registered employers must file (even if no wages were paid) and pay any taxes due, on or before the delinquent date for the quarter. NAC 612.035 requires employers to file their Contribution and Wage Reports online. Employers unable to comply with the online filing requirement may submit a waiver. Information that is to be reported quarterly includes tax summary details as well as wage information on all employees. For each employee, the following information is required: social security number, first and last name, tips reported, and total gross wages including tips paid during the quarter. Before filing online for the first time, an ESS online user account must be created (https://apps.detr.nv.gov/ESS) to access the secure web portal. User access can be established for direct reporting by the employer or can allow for reporting by an authorized agent. Additionally, the amount of tax due is calculated by the online process. Employers can view the balance due and print a payment coupon through their online portal. Payments can be submitted by mailing in a check with the Payment Coupon or by signing up for one of the convenient Electronic Payment System (EPS) options (ACH Credit or ACH Debit). If the amount due is $10,000 or more, Nevada law requires the payment be made electronically. Electronic Payment System To report online use one of the following methods: · 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's Electronic Filing W2 format. · 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. · 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. Additional information on the online reporting methods, including step by step instructions, are in the Guide to Online Employer Self Service Generally, the completed quarterly report together with payment due, must be received by the division, by the last day of the first month following the close of the calendar quarter covered by the report. 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.
While taxes are paid on wages up to the taxable wage limit for each employee, total wages must be reported for each employee. Benefit entitlement is based on total wages earned. Amounts in excess of the taxable wage limit paid during a calendar year, and occurring in a calendar quarter, are deducted from total wages to arrive at taxable wages for the quarter. The taxable wage limit is calculated by the division each year (66 2/3 percent of the average annual wage in Nevada).
Note: The amount of tips reported by each employee for Internal Revenue Service purposes must be listed separately and included in the total wages. While tips are used in determining the amount of an individual claimant's benefits, they are excluded from the annual computation of the maximum weekly benefit amount and, therefore, must be reported separately. The Unemployment Insurance (UI) tax rate for new employers is 2.95 percent (.0295) of taxable wages. For experience rated employers, the rates may range from a low of .25 percent to a maximum of 5.4 percent of taxable wages. In addition, all employers, except those with a 5.4 percent rate, must pay a tax for the Career Enhancement Program (CEP) of .05 percent (.0005). Unemployment Insurance tax rates are available through ESS, under Summary Information. A Reporting agent can locate information regarding client rates under ESC requests. Tax rates represent a percentage of the taxable wages and as such, when calculating and reporting the amounts, care must be given in correct decimal equivalents. Below are the decimal equivalents of each of the tax rates:
Unemployment Insurance taxes are due quarterly. If the amount due is $10,000 or more Nevada law (NRS 353.1467) requires the payment to be made electronically. This also applies to authorized agents and submitters who file for multiple employers with a total aggregate amount of contributions of $10,000 or more. Electronic payments can be made by Electronic Fund Transfer (EFT) through the Automated Clearing House (ACH) network by utilizing either ACH Credit or ACH Debit methods. Electronic Payment System
Penalty and Interest Calculations: Employers who file reports after the due date are required to pay the following penalties: · Forfeit of $5 if one or more days late filing the report · Additional interest charge of 1/10 percent (.001) of taxable wages after 10 days, for each month or part of a month that the report is delinquent.
Note: These costly penalties can be avoided by filing all reports on time even if the tax payment cannot be made when due. If taxes are not paid when due, the employer must pay interest of 1 percent (.01) of the UI Contributions (taxes) due for each month or part of a month that the payment is delinquent. There is no interest charged for delinquent CEP taxes. Electronic payments must be received on or before the due date to avoid late fees. Payments made by check, via the mail or a mailing service, must be postmarked on or before the due date to avoid interest.
Note: Dishonored checks will be charged a processing fee of $25.00. The Employer's Quarterly Contribution and Wage Report requires information on the number of employees. It is required that employers enter the Number of Covered Workers. This is a count of all full-time and part-time employees who worked or received pay subject to the Nevada Unemployment Compensation Law for the payroll period which includes the 12th of the month. These numbers are used to compute the maximum weekly benefit amount and the annual taxable wage limit. These statistics are important as they impact the overall cost to employers. Address and Other Business Changes: To provide the best service possible, it is important that employers notify the division of any business changes, including address changes. Employers that have established an ESS online account for unemployment insurance taxes can view their information through the portal. Through the ESS online portal employers can update addresses, contact information, owner information, Doing Business As (DBA), and Reporting Service information. To correct a FEIN, Legal Business Name or to close or reopen an account, employers will need to notify the division in writing by submitting an Employer's Report of Changes. Reporting Employees Who Work in Other States: All states have a uniform provision regarding multi-state workers to prevent reporting to more than one state: · If a worker performs all services in Nevada, or if only temporary or incidental services are performed in other states, the services are "localized" in Nevada, and all the worker's wages must be reported to Nevada. · If the worker performs some services in Nevada and some services in other states which are more than temporary or incidental, all wages should be reported to the state in which the "base of operations" is located. Note: "Base of operations" is the place or fixed center of more or less permanent nature from which the employee works; that is, from which the employee starts their work and to which they customarily return. It may be the worker's office for business purposes (which may be maintained in the worker's home). If the worker has no "base of operations," wages should be reported to the state from which they receive direction and control. · If some services are performed in Nevada, but the worker has neither a "base of operations" nor a specific location from which they receive direction and control, all wages should be reported to this state, if the worker's residence is in Nevada. If an employer employs U.S. citizens who perform services in foreign countries (except Canada), their wages must be reported to Nevada if: 1. The employer's principal place of business is in Nevada; or 2. If the employer has no principal place of business in the U.S.; but a. The employer is a resident of this state; or b. The employer is a Nevada corporation. Employers who have paid no wages during a calendar quarter will not owe any taxes. However, they are still required to submit an Employer's Quarterly Contribution and Wage Report online. Four consecutive "no payroll" reports will result in an automatic suspension of the employer account by the division. Employers who close their business or have no employees must notify the division immediately by submitting an Employer's Report of Changes to the division so the account can be suspended. If the division is not advised, the employer will remain in active status and could be subject to unnecessary levies of assessment for failure to file reports. Each quarter, mail payments made payable to the Nevada Employment Security Division to: Department of Employment, Training and
Rehabilitation Corrections to Quarterly Reports: Employers who discover a reporting error for a previous quarter need to supply the correct information using a Statement to Correct (form RPT 7833, https://ui.nv.gov/PDFS/RPT7833.pdf) form. All corrections must be made on paper, whether the error was made online or on paper. The most common error is an incorrect social security number. Do not submit an "amended" Employer's Quarterly Contribution and Wage Report. Applications for adjustment must be made not later than three years after the date on which such payments became due. An adjustment or refund will not be made in any case with respect to contributions on wages which have been included in the determination of an eligible claim for benefits, unless and until it is shown to the satisfaction of the administrator that such determination was due entirely to the fault or mistake of the Employment Security Division. Employer credits do not expire and a request for refund must be submitted to the Division in writing. Corrections which result in an overpayment will be credited to the employer's online account to apply against future taxes. Employer accounts which are no longer active and would like a refund, must make the request in writing https://ui.nv.gov/PDFS/Refund_Request_Form.pdf. The law requires that all refunds will be made without interest. Tax refund checks will be issued to the same business entity which is responsible for payment of unemployment insurance tax. The "Pay to the Order" will list the corporate name or doing business as listed on the account. Credit Against Federal Unemployment Tax: Currently, the Federal Unemployment Tax is 6.0 percent (.060) of taxable wages up to $7,000 per individual. Employers who pay all state unemployment taxes when due receive a federal credit resulting in the federal tax being reduced to .6 percent (0.006). Should Nevada become subject to FUTA Credit Reduction, the federal tax an Employer pays would increase. Employers should report the sum, which was paid timely, for the four calendar quarters of the year on their form 940. Do not include CEP tax; this is a separate state tax and cannot be credited against an employer's Federal Unemployment Tax.
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