Unemployment Insurance Tax (FUTA/SUTA): Nevada

Federal law and guidance on this subject should be reviewed together with this section.

Author: Dora V. Lane, Holland & Hart LLP

Summary

• Nevada uses the ABC test to determine who is an employee for state unemployment insurance (SUI) tax purposes. See ABC Test.
• The law defines wages for SUI purposes as all compensation for personal services, including salaries, commissions, bonuses and the cash value of all compensation paid in any medium other than cash. The annual total SUI tax rate is based on a range of rates. See SUI Taxable Wages; Contribution Rates.
• The Nevada anti-SUTA dumping law mirrors the federal SUTA Dumping Prevention Act. Under state law, employers that knowingly attempt to manipulate businesses to get a lower tax rate are liable for serious penalties. See SUTA Dumping.
• Nevada law does not permit voluntary contributions to lower SUI tax rates. See Voluntary Contributions.
• An employer that is required to make unemployment insurance contributions must file quarterly reports. In addition, employers that operate more than one establishment in Nevada may be requested to submit Multiple Worksite Reports. See Quarterly Reporting Requirements; Multiple Worksite Reporting.
• An employer's account will not be relieved of charges for overpayments caused by the employer's failure to properly respond to requests for information about the underlying claim for benefits. Also, employers may be subject to adiminstrative withholding for benefits obtained fraudulently by an employee. See Benefit Overpayments.
• All employers must maintain true and accurate records with respect to each employee and pay period for at least four years. See Recordkeeping Requirements.