2017 Nevada Bond Rates

What is the Nevada Bond and why do I have to pay?

Nevada received federal loans to pay unemployment insurance benefits. To repay the loans, Nevada issued out bonds. To repay the bonds, all contributory employers, in addition to paying UI taxes, must also pay quarterly bond contributions. (NRS 612.6102-612.6134)  Bonds Issued to Repay Federal Loans.

The State of Nevada has issued special revenue bonds, as provided for in recent legislation SB515, for the purpose of repaying federal loans needed to pay unemployment benefits. An advantage to using bonds to pay for these loans is that Nevada will no longer be a federal unemployment (FUTA) credit reduction state for the 2013 tax year, restoring the full federal credit offset of 5.4%. Additionally, with the loans being repaid, no future interest associated with them will be accruing. Contributory employers subject to Nevada unemployment insurance (UI) taxes will be required to pay a quarterly bond assessment to cover the principal, interest, and administrative payments on the bonds.

Bond contributions began with the first quarter 2014, with a due date of April 30, 2014 and continue to be collected quarterly from employers until the bonds are fully repaid in late 2017 or early 2018.  Bond contributions are separate from, and in addition to, regular quarterly Nevada unemployment insurance taxes.  The collection of bond contributions will be administered using the same laws as those for regular UI contributions.

Bond contribution rates will be calculated according to the formula established in the regulation. 
Quarterly Bond Contribution = quarterly Taxable Wages paid X your assigned Bond Factor.

Like your UI tax rate, your bond factor will be reviewed annually, and is based on the employer’s previous experience with unemployment.  Employers with low UI rates will have lower bond factors than employers with higher UI rates.  

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