Panel: Keep unemployment tax rate unchanged during next year

The unemployment insurance tax rate paid by Nevada employers should remain at 2 percent in 2012, the state's The Employment Security Council recommended last week.

Cindy Jones, the administrator for the Employment Security Division of the Department of Employment, Training and Rehabilitation, said she likely will accept the recommendation when she makes a final decision later this year.

The lowest current rate is set at $66.50 per worker, which drops to $66. Employers with the highest turnover will be paying $1,425 per worker, down from the current $1,436. In 2012, employers will pay tax on the first $26,400 of each worker's wage.

The 2 percent rate will create estimated revenue of $438 million for the unemployment fund during 2012. Jones noted, however, the fund has been depleted by high unemployment during the recession and the system would need to generate about $2 billion in revenue in 2012 to get back to the recommended minimum level of reserves.

Nevada has been borrowing money from the federal government to pay jobless benefits since October 2009, when the state's fund was depleted.

Bill Anderson, chief economist with the department of employment, training and rehabilitation, said he expects Nevada's current unemployment rate of about 13.2 percent to improve modestly maybe to 12 percent or so during 2012.

He said the Research and Analysis Bureau of DETR expects the jobless rate will remain steady during the remainder of this year.