By Subrina Hudson Las Vegas Review-Journal October 22, 2021
Nevada businesses are facing a series of hurdles capable of stunting their growth — increased wholesale costs, supply chain nightmares, shipment delays coupled with higher shipment costs, a labor shortage — and they may soon face a higher unemployment insurance tax.
The UI tax rate helps fund the state’s unemployment insurance trust fund, which is used for paying jobless benefits to Nevadans.
While the increase is meant to replenish a trust fund depleted by the thousands of unemployment claims filed over the past 18 months, many businesses are arguing for the increase to be delayed. It’s expected to be raised by one-third of a percent from 1.65 percent to 2 percent, potentially costing employers an additional $130 per employee.
“Our economy is by no means back on track,” said Cara Clarke, spokeswoman for the Vegas Chamber. “Employers of all sizes are facing a lot of economic uncertainty. You have a lot of additional costs in addition to normal things in a business that go up, like health care. So, the timing of this, we think, is a problem and there doesn’t seem to be a real urgent need for it.”
And the Vegas Chamber has asked its members and businesses to voice their concerns at a small-business workshop, hosted by Nevada’s Employment Security Division and the Department of Employment, Training and Rehabilitation.
The virtual meeting at 9 a.m. Friday will solicit public comment over the proposed UI tax increase.
The meeting will take place on Zoom at https://us06web.zoom.us/j/87281264302?pwd=cHpuQWdKZTcrYzRpcyszbE5YcmQzQT09. Virtual public comment will be made available at 669-900-6833, meeting ID 87281264302.