Unemployment Insurance Law Summaries
Nevada, Unemployment Insurance Law Summaries
Nevada's unemployment insurance law is located in Nevada Revised Statutes, Title 53, Chapter 612, Secs. 612.010 to 612.760 (for full text, see Unemployment Insurance Reports UI-NV ¶4001 ); and in the Regulations under the Nevada Unemployment Compensation Law, Ch. 612 of the Nevada Administrative Code, Reg. Nos. 612.010 to 612.580.
DEFINITIONS
An “employer” employs one or more during quarter for wages of $225 or more; employs one or more persons in the state during current or preceding year and is subject to FUTA.
“Employment” means service, including service in interstate commerce, performed for wages or under any contract of hire, written or oral, express or implied, with certain exceptions.
Service performed for wages constitutes employment unless and until it is shown that individual is:
free from control or direction; and
performing such service outside usual course of employer's business or outside all places of employer's business; and
performing such service in course of independently established business in which individual is customarily engaged, of same nature as that involved in contract of service.
The following services are covered: service by an individual for a corporation, service as an officer or member of the crew of an American vessel or aircraft if management and control of that vessel or aircraft is within Nevada, and service by certain agent-drivers or commission-drivers and traveling or city salespersons.
Generally, employment subject to the federal law is automatically subject to the Nevada law.
“Wages” means all remuneration paid for personal services, including commissions, bonuses, cash value of all remuneration payable in any medium other than cash, and sick pay where paid as part of a regular salary account. Wages includes income from tips reported by an employee to the employer (tips reports may not be amended and tips reported after the 10th day of the month following the month in which received may not be included or used in any claim for benefits). The following types of remuneration are excluded:
Remuneration over $26,600 for 2009 paid to an individual by an employer with respect to employment during any calendar year, including wages paid by a predecessor employer. For each calendar year, taxable wage base computed as 66 2/3 % of average annual wage for preceding calendar year. Remuneration paid for employment in another state must be included in taxable wage base. Wage base will be increased to correspond with any increase in the federal taxable wage base.
Other exclusions from wages are listed below.
COVERAGE
Generally, employment subject to the federal law is automatically subject to the Nevada law. Certain exceptions are listed below. Service performed for wages constitutes employment unless and until it is shown that individual is:
free from control or direction;
performing such service outside usual course of employer's business or outside all places of employer's business; and
performing such service in course of independently established business in which individual is customarily engaged, of same nature as that involved in contract of service.
The following services are covered: service by an individual for a corporation, service as an officer or member of the crew of an American vessel or aircraft if management and control of that vessel or aircraft is within Nevada, and service by certain agent-drivers or commission-drivers and traveling or city salesmen.
Agricultural and domestic employers.- Service performed in agricultural labor for an employer who employs 10 or more workers in such labor in 20 different weeks in the current or preceding calendar year or pays $20,000 or more for such labor in any quarter of the current or preceding calendar year is covered. Service by aliens prior to 1/1/80 is excluded. When agricultural labor is supplied by a crew leader, the employing unit for which the service is performed is the employer unless the crew leader is registered under the Farm Labor Contractor Act of 1963 or substantially all of the crew members operate or maintain certain mechanized equipment that is provided by the crew leader. In either of these cases, the crew leader is the employer.
Domestic service.- Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed for an employer who paid $1,000 or more in any quarter of the current or preceding calendar year for such service.
Government and nonprofit employers.- Coverage is required for tax-exempt nonprofit organizations employing four or more individuals for some portion of a day in each of 20 weeks in the current or preceding calendar year.
Most service performed for the state and its political subdivisions is covered. Note the exclusions listed below.
Nonprofit organizations, tribal units, and all covered state entities may elect the contribution or the reimbursement method.
Under reimbursement financing, payments equal the full amount of regular plus 50% (100% for state entities) of extended benefits paid to claimants. Bills must be paid not later than 30 days after mailing.
EXCEPTIONS
Wages.- The following types of remuneration are excluded:
Remuneration over $24,600 for 2007, and $25,400 for 2008, paid to an individual by an employer with respect to employment during any calendar year, including wages paid by a predecessor employer. For each calendar year, taxable wage base computed as 66
% of average annual wage for preceding calendar year. Remuneration paid for employment in another state must be included in taxable wage base. Wage base will be increased to correspond with any increase in the federal taxable wage base.
Payments to individual or his or her dependent under plan or system established on account of retirement, sickness or accident disability, medical or hospitalization expenses, or death.
Certain other retirement payments.
Payments for sickness or accident disability made over six months after separation.
Payments from, to, or under trust or annuity plan exempt from federal income tax.
Payment of employee's FICA tax without deduction from wages.
Stand-by pay to employee 65 or over.
Noncash remuneration for service not in course of employer's trade or business.
Employment.- The term employment does not include the following:
Direct sellers selling or soliciting sale of products in person or by telephone on the basis of a deposit, commission, purchase for resale or similar arrangement if the products are to be resold to another person in other than a retail store, if compensation is based on sales or services rather than hours worked and there is a written agreement providing that the seller is not an employee.
Maritime employees. Service on a foreign vessel or aircraft if employed on such vessel or aircraft when outside the United States.
Mining lessees under lease agreements.
Newspaper and shopping news carriers under 18.
Railroad employees covered by Railroad Unemployment Insurance Act.
Real estate salespersons or brokers on commission basis.
Relatives, i.e., service performed by individual in employ of son, daughter, or spouse, or by child under 18 in employ of parent.
Service by student enrolled at a nonprofit or public educational institution in a full-time work-study program. Exemption not applicable to service performed in a program established for an employer or group of employers.
Service for a hospital by a patient of the hospital.
Service for a school, college, or university by a student enrolled and in regular attendance, or a spouse of a student if the spouse's employment is provided under a program of assistance to the student by the school, college, or university.
Service covered by federal unemployment compensation system.
Agricultural and domestic employers.- Service by aliens prior to 1/1/80 is excluded.
Government and nonprofit employers.- Coverage is required for tax-exempt nonprofit organizations employing four or more individuals for some portion of a day in each of 20 weeks in the current or preceding calendar year.
Most service performed for the state and its political subdivisions is covered. The following services for a nonprofit organization or for the state are not covered:
Church or organization operated primarily for religious purposes and which is controlled by a church.
Religious duties of a minister or member of a religious order.
Patients performing services in a rehabilitation facility or sheltered workshop.
Individual receiving unemployment work relief or work training under program financed in whole or in part by a federal agency or an agency of a state or political subdivision.
Inmate performing services in a custodial or penal institution.
Elected officials.
Members of a legislative body or judiciary.
Members of Nevada National Guard or Air National Guard.
Temporary employees serving in case of fire, storm, snow, earthquake, flood or similar emergency.
Individuals in certain major nontenured policymaking or advisory positions.
PROCEDURES
Base period.- First four of the last five completed quarters preceding benefit year; however, if the first of the last five quarters was included in the base period for a prior benefit year, the base period is the last four quarters just preceding the benefit year. An extended base period may be elected by an individual who has received compensation for a temporary total disability or a temporary partial disability.
Benefit year.- 52-week period beginning with first day of week with respect to which individual files valid claim.
Weekly benefit amount.-
of highest quarterly base-period earnings, but not less than $16. Maximum is 50% of the state-wide average weekly wage. Maximum for year beginning 7/1/2008 is $393. If individual fails to qualify for weekly benefit amount of
of his or her high-quarter wages, but can qualify for weekly benefit amount of $1 less than
of his or her high-quarter wages, the individual's weekly benefit amount will be $1 less than
of his or her high-quarter wages. Partial benefit is determined as weekly benefit amount less 75% of the remuneration payable for that week.
Maximum total benefits.- Either 26 times the weekly benefit amount or
of base period wages, whichever is less, computed to next higher multiple of $1. In addition, during certain periods of high unemployment, payment of extended benefits at claimant's weekly benefit amount.
Benefit eligibility: Requirements-
Base period wages of at least 1
times total wages during the high quarter or wages in each of at least three of the four quarters of the base period. Wages paid immediately prior to retirement are not included. If claimant fails to qualify for weekly benefit amount of
of high-quarter wages, see discussion above.
Able and available for work, except claimant not deemed ineligible due to uninterrupted period of illness or disability occurring while unemployed if no suitable work offered. Notwithstanding the availability for work requirement or the disqualification for failure to apply for or accept suitable work, no benefits may be denied to an otherwise eligible individual in approved training.
Participate in reemployment services under worker profiling program if required to do so. No benefits may be paid in a benefit year unless, subsequent to the beginning of the preceding benefit year during which benefits were paid, the claimant earned at least three times his or her weekly benefit amount for the preceding benefit year in covered or noncovered employment.
No benefits may be paid to instructors, researchers or principal administrators of any educational institution during periods between academic years or terms if there is a contract or reasonable assurance of reemployment in the second year or term.
No benefits may be paid to nonprofessional employees of educational institutions between academic years or terms if there is reasonable assurance of reemployment in the second year or term. If there is no opportunity offered to work in the second year or term, retroactive payments of benefits may be claimed.
Benefits are not payable to a professional athlete during periods between two sport seasons if there is a reasonable assurance that he or she will return for the second season.
Benefits are not payable to an alien unless he or she has been lawfully admitted for permanent residence, is lawfully present in the U.S. for the purpose of performing services, or is otherwise permanently residing in the United States under color of law.
Disqualifications-Period.- Discharge by most recent employer, or by next most recent employer, if worker has not earned at least five times his or her weekly benefit amount following the work immediately preceding his or her most recent work, for misconduct connected with work-two to 16 weeks, in addition to which the individual's total benefit entitlement for his or her benefit year will be reduced by an amount equal to the number of weeks of disqualification times his or her weekly benefit amount, not to exceed half of his or her total entitlement to benefits.
Voluntarily leaving most recent or next to last work without good cause-until claimant earns remuneration at least equal to his or her weekly benefit amount in each of 10 weeks.
Voluntarily leaving last or next to last work to seek better work-week of leaving and all subsequent weeks until individual secures better work or earns remuneration equal to his or her weekly benefit amount in each of 10 weeks.
Failure to apply for or accept suitable work-week of such failure and until the claimant earns wages equal to or exceeding his or her weekly benefit amount in each of up to 15 weeks, as determined by the circumstances of the case.
Labor dispute-any week of unemployment due to a labor dispute which is in active progress at claimant's last place of work.
Receipt of unemployment benefits under other state or federal law-period for which payments are made.
Receipt of wages in lieu of notice, severance pay or vacation pay-weeks to which payments apply.
Receipt of back pay due to unlawful discharge-repayment of benefits paid during period for which back pay was awarded, without regard to length of time that has passed since benefits were paid.
Receipt of governmental or private pension, annuity or other similar periodic payment under a plan maintained by a base period or chargeable employer-
no reduction if the claimant made any contribution to the plan and
reduction by entire proportionate weekly amount of the pension if the employer contributed the entire amount of the pension plan.
No reduction if the services performed during the base period or compensation received for such services did not affect the claimant's eligibility for or increase the amount of his or her pension (except in the case of social security or railroad retirement benefits).
False statement, representation, or failure to disclose material fact-repayment of benefits received as a result of false statement, representation or failure to disclose material fact plus disqualification for not more than 52 weeks beginning with week in which improper claim was filed.
Discharge for commission of assault, arson in any degree, sabotage, grand larceny, embezzlement or wanton destruction of property in connection with work, if such act is admitted in writing or under oath or in a hearing, or has resulted in a conviction in a court-no entitlement to wage credits based on employment with employer against whom act is committed.
Discharge from or leaving employment with a private employer while incarcerated in a custodial or penal institution due to transfer or release from the institution-week of discharge or leaving and until the individual earns remuneration equal to his or her weekly benefit amount in each of 10 weeks.
WHAT THE EMPLOYER MUST DO
Pay the standard rate.- 2.95%. Maximum possible rate is 5.4%. No employee tax.
Experience rates.- Contribution rates are assigned on a calendar-year basis, and may be as low as 0.25%. However, until it has the required employment experience, no employer is eligible for the experience rating that allows it to obtain a reduced rate. The experience period, during which the employer must be subject to the law with benefits chargeable to its account, is 10 consecutive calendar quarters ending on June 30 preceding the year for which rates are being set. Until the required experience has been accumulated, the employer's rate will be 2.95%.
The tax rate of the experience-rated employer depends on its reserve ratio, which is the ratio of its reserve balance (excess of total contributions paid over total benefit charges to its account) to its average annual payroll over the past three years.
Each contributing employer (except those paying 5.4%) must pay an assessment for the employment of claimants at the rate of .05% of taxable wages. Note that basic employer rates (except the 5.4% rate) are reduced by .05%.
Contribution rates for calendar year 2009 may be determined from the following schedule, which does not include the .05% claimant employment tax:
|
|
|
|
Reserve Ratio
|
|---|
Class
|
2008ContributionRate
|
AtLeast
|
But LessThan
|
|---|
1
|
|
0.25%
|
6.9
|
|
-
|
2
|
|
0.55%
|
5.5
|
|
6.9
|
3
|
|
0.85%
|
4.1
|
|
5.5
|
4
|
|
1.15%
|
2.7
|
|
4.1
|
5
|
|
1.45%
|
1.3
|
|
2.7
|
6
|
|
1.75%
|
-.01
|
|
1.3
|
7
|
|
2.05%
|
−1.5
|
|
-0.1
|
8
|
|
2.35%
|
−2.9
|
|
−1.5
|
9
|
|
2.65%
|
−4.3
|
|
−2.9
|
10
|
|
2.95%
|
−5.7
|
|
−4.3
|
11
|
|
3.25%
|
−7,1
|
|
−5.7
|
12
|
|
3.55%
|
−8.5
|
|
−7.1
|
13
|
|
3.85%
|
−9.9
|
|
−8.5
|
14
|
|
4.15%
|
−11.3
|
|
−9.9
|
15
|
|
4.45%
|
−12.7
|
|
−11.3
|
16
|
|
4.75%
|
−14,1
|
|
−12.7
|
17
|
|
5.05%
|
−15.5
|
|
−14.1
|
18
|
|
5.40%
|
-
|
|
−15.5
|
SUTA dumping.- The Administrator will adopt regulations establishing procedures to identify transactions in which the transfer or acquisition of a business entity is for the sole or primary purpose of obtaining a lower unemployment insurance contribution rate; and common ownership, management or control between two or more business entities, including, without limitation, through the movement of workforce between such business entities.
If, for any rate year, the Administrator determines that an employer has, through deliberate ignorance, reckless disregard, intent to evade, fraud, misrepresentation or willful nondisclosure, obtained or attempted to obtain a more favorable rate of contribution, the Administrator will assign to the employer the maximum contribution rate plus two percent for each applicable rate year, the current rate year and the subsequent rate year. In addition to any penalty imposed pursuant to NRS 612.730, the Administrator will impose on the employer a civil penalty of the greater of $5,000; or 10 percent of the total amount of any resulting underreporting of contributions and any other penalties and interest imposed.
If the Administrator determines that a person or business entity knowingly advised another person or business entity to violate or attempt to violate any provision of this chapter, in addition to any penalty imposed pursuant to NRS 612.730, the Administrator will impose on such person or business entity a civil penalty of the greater of $5,000; or 10 percent of the total amount of any resulting underreporting of contributions and any other penalties and interest imposed.
DEADLINES
Tax and wage.- Contribution and quarterly wage report, Form NUCS-4072, must be received by Department no later than the last day of month following quarter covered. If due date falls on Saturday, Sunday or holiday, it will be deemed timely filed if postmarked by midnight of the next business day following such date. Magnetic media and online-internet filing is available and encouraged by the Department.
ENFORCEMENT
The Nevada Unemployment Compensation Law is administered by the Administrator of the Employment Security Division, Department of Employment, Training and Rehabilitation.
If, after due notice, an employer defaults in the payment of any contributions, interest or forfeit imposed by the law, the Administrator or his authorized representative may collect the amount due by civil action brought in the name of the State of Nevada. This also includes the right of attachment.
In addition to or independent of the remedy by civil action, the Administrator or his authorized representative, after giving 15 days' notice to an employer who defaults in any contribution, interest or forfeiture payment, may file in the clerk's office of the district court in which the employer has his principal office a certificate setting forth among other things the amount of payment due together with a request for judgment for such amount. The employer within the fifteen days may pay the amount under protest and he then has the right within sixty days from his date of payment to initiate an action in the district court to recover any or all of the amount as may have been erroneously assessed or paid. If no protest is made by the employer, the clerk will enter a judgment for the amount set forth in the certificate.
Where a jeopardy assessment of contributions has been made, the employer may stay its collection until such time as the contributions would normally become due by filing a bond with the Administrator in an amount equal to the assessment.
WHO TO CONTACT
The Nevada Unemployment Compensation Law is administered by the Administrator of the Employment Security Division, Department of Employment, Training and Rehabilitation, 500 East Third St., Carson City, Nevada 89713. Telephone: (702) 687-4545.
RECORDKEEPING
Each employing unit must keep true and accurate work records, containing such information as the Administrator may prescribe. Such records must be open to inspection and be subject to being copied by the Administrator or an authorized representative at any reasonable time and as often as may be necessary. Such information is confidential, but may be disclosed to certain authorized persons and agencies.
The Administrator may destroy certain records and reports of employing units after four years or after microfilming the records. The Law also provides that all letters, reports, or communications between an employer, an employee, and the Department are privileged.
POSTING
Each employer must post and maintain in places readily accessible to individuals in its employ a prescribed printed statement relative to regulations and other matters. See ¶29-9900 .
PENALTIES
Whoever makes a false statement or representation knowing it is false or knowingly fails to disclose a material fact, to obtain or increase any benefit or other payment under the act, shall either be punished by fine or imprisonment or both. For failure to submit any report required by the Administrator within the prescribed time period, a $5 forfeit for each report not submitted is imposed. Any person who fails to submit any report of wages within 10 days following the expiration of the time prescribed by the Administrator shall, in addition to the $5 mentioned above, pay interest upon the wages subject to contributions or payments involved in such report of 0.1% for each month or portion of each month until the report is filed. If the Administrator feels the failure to file the report within the prescribed time was due to uncontrollable circumstances, then the collection of all or any portion of such forfeit or interest may be waived.
Employers who finance benefits by the reimbursement method and whose payments are past due are subject to the same interest charges and penalties applicable to employers whose contributions are past due.
If an employer neglects or refuses to file a report of wages and contributions or refuses to correct such a report after notice, the Administrator may make an estimate and upon the basis of the estimate assess the amount of contributions the employer must pay, plus all forfeit and interest which may have accrued. The employer may apply for a readjustment of the assessment. The Administrator may make a modification of an assessment.
If any employing unit is delinquent in the payment of any contribution, forfeit or interest provided for in the Law, the Administrator may give notice of the amount of such delinquency by registered mail to any person having in his possession or under his control any credit or other personal property belonging to such delinquent employing unit, or owing any debt to such employing unit at the time of the receipt of the registered notice. This registered notice must be given not later than three years after the payment became delinquent, or within six years of the recording of a judgment for contributions, interest or forfeiture. A person so notified may not make any disposition of such debt, credit, etc., until the Administrator consents to such disposition in writing, or until 30 days have elapsed from and after the receipt of such notice. All persons so notified must, within five days after the receipt of such notice, advise the Administrator of any and all such credits, debts or other personal property in their possession under their control, or owing by them as the case may be.
Interest.- Contributions and payments in lieu of contributions unpaid on the date on which they are due and payable bear interest at the rate of
% per month or portion thereof from the due date until payment, plus accrued interest, is received by the Administrator. Accrued interest may not be waived.
Liens.- In the event of any distribution of an employer's assets either voluntarily or pursuant to an order of any court under the laws of Nevada, a lien for contributions then due will be paid in full prior to all other liens or claims except prior taxes and liens which have been recorded prior to the time the contributions became due and claims for wages not over $600 to each claimant which were earned within three months of the proceeding. In proceedings under the Federal Bankruptcy Act, contributions shall be entitled to the same priority as is afforded by that Act to taxes due other states.
At the time that a judgment for contributions, interest or forfeiture is recorded, it becomes a lien upon the employer's property in the county where the judgment is recorded.
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