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Governor Ricketts announces new unemployment tax relief

Posted: 12:33 PM, Feb 04, 2019
Updated: 2019-02-04 13:33:48-05
Gov. Ricketts.jpg

LINCOLN, Neb. (KMTV) — Governor Pete Ricketts and the Nebraska Department of Labor announced new tax relief thanks to a reduction in the unemployment insurance tax rate.

This year, Nebraska's average unemployment insurance tax rate for employers is lower than 2018. The average tax rate for 2019 is 0.70 percent, a decrease of 0.06 percentage points from 2018 and a decrease from 2.63 percentage points compared to 2011.

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 2019 taxes than 2018.

A dramatic decline in continued unemployment claims and benefits paid out led to the decrease in the unemployment insurance tax rate. The state continues to enjoy favorable unemployment tax rankings, ranking in the top ten in 2019, according to the Tax Foundation's State Business Tax Climate Index.

Nebraska is also among states recognized for having the lowest minimum and maximum tax rates.