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Nevada Unemployment Insurance Posters

August 25th, 2006 Posted by Emily

As stated on Nevada Unemployment Insurance Posters, Unemployment Insurance is a Federal/State insurance system established to protect workers by paying benefits during periods of involuntary unemployment and aid the business community by stabilizing the available work force. The system is funded through payroll taxes on employers.

Generally, any employing unit that has paid wages for employment in Nevada of $225 or more during any calendar quarter must register with the Employment Security Division, and pay taxes on those wages. In general, an “employing unit” means any individual or type of organization, including any partnership, association, trust, estate, joint-stock company, insurance company, corporation, or a receiver or trustee in bankruptcy. If you are an employing unit, you are required by law to post Nevada Unemployment Insurance posters in areas visible to your employees.

Employers starting a new business in Nevada must pay unemployment insurance (UI) tax at a rate of 2.95 percent (.0295) of wages paid to each employee up to the taxable wage limit. The employer retains this rate for a period of 14 to 17 calendar quarters (depending on the quarter in which he becomes subject to the law), after which his rate will be determined under the “Experience Rating” system.

Once an employer becomes eligible for “experience rating,” he will receive one of 18 unemployment insurance (UI) tax rates, ranging from .25 percent to 5.40 percent of taxable wages. Each employer’s tax rate may vary from year to year, depending on previous experience with unemployment and the rate schedule in effect.

Nevada Unemployment Compensation Law does not define “independent contractor.” It uses what is commonly referred to as the “ABC” test. This test is unique to the Unemployment Compensation Program. Unless otherwise specifically excluded, payment for personal services is deemed subject to unemployment taxes unless the following conditions are met. All three conditions must be met in fact; a written contract alone is not sufficient. The burden of proof rests upon the employer to demonstrate the existence of these conditions as described on Nevada Unemployment Insurance posters:

The person has been and will continue to be free from control or direction over the performance of the services, both under his contract of service and in fact; and
The service is either outside the usual course of the business for which the service is performed or that the service is performed outside of all the places of business of the enterprise for which the service is performed; and The service is performed in the course of an independently established trade, occupation, profession or business in which the person is customarily engaged, of the same nature as that involved in the contract of service.

If you cannot demonstrate the above conditions, the person is an employee. A written contract, in itself, does not establish “independent contractor” status. If in doubt, contact the Contributions Section for a ruling. Please see the Nevada Unemployment Insurance posters for further information.