Governor, Dept. of Labor announce change in unemployment insurance rates
The rates on unemployment insurance taxes will be lower this year than in 2018, Gov. Pete Ricketts announced February 4.
“When the state controls spending and delivers tax relief, businesses can focus more of their resources toward creating great job opportunities and helping to grow Nebraska’s economy,” the governor said in a news release announcing the new rates.
“The average tax rate for 2019 is 0.70 percent, a decrease of 0.06 percentage points from 2018 and a decrease of 2.63 percentage points compared to 2011,” according to the release. “Under the statutory formula, the reduction in unemployment benefit payments in 2018 and the healthy balance in the Nebraska Unemployment Trust Fund will result in Nebraska employers paying an estimated $4.3 million less in taxes in 2019 than they paid in 2018.”
Reemployment Plan Given Credit
Part of the credit for the reduced unemployment insurance rates was given to Nebraska’s first-in-the-nation reemployment program. According to the governor’s news release, “Nebraska’s reemployment program is unique among state labor departments in that all jobseekers who receive unemployment benefits are required to enroll in an individualized reemployment plan to remain eligible for benefits unless they are only on temporary layoff from their regular employer.”
Commissioner of Labor John H. Albin said, “The positive effects of the reemployment program have continued to pay dividends for Nebraska As of October, the number of Nebraska workers exhausting their claims is one-third less than the national average, 25.38 percent vs. 35.32 percent nationally.”
According to the Tax Foundation’s 2019 State Business Tax Climate Index, Nebraska the 9th best unemployment insurance tax ranking in the nation. The state is also ninth best on sales tax rates. Its overall ranking of 24th best is due to the drags of its property tax rates (40th), corporate taxes (28th), and individual income tax rates (26th).
