The Nevada Department of Employment, Training and Rehabilitation recently announced that it has repaid its remaining bond balance in full. The Department has decided that the third quarter 2017 is the last period that employers will pay the bond assessment. Employers will not submit a bond assessment return or pay the bond assessment starting the fourth quarter 2017. The last bond assessment return was submitted in October for the third quarter of 2017.
WHAT TO EXPECT
Employers will be notified of the elimination of the bond assessment in the mailing of the fourth quarter 2017 blank SUI tax return.
Fourth Quarter 2017 Collection
Paylocity did collect and accrue fourth quarter 2017 Nevada bond assessment on our clients’ behalf (October through December payrolls.) These have not been paid to the agency and Paylocity will return fourth quarter collections during our normal Quarterly variance process on or around January 20, 2018.
First Quarter 2018 Collection
You may have seen a line item for the Nevada bond assessment on your January 2018 Payroll Summary Reports. However, the collection of the bond assessment was suppressed prior to the payroll tax bank draft. All collections have ceased and no first quarter 2018 monies have been collected. Clients will be able to reconcile their payroll tax bank draft by subtracting the amount for the Nevada bond assessment first.
2018 SUI Tax Rates Remain on the Same Schedule
The Department issued the 2018 state unemployment insurance (SUI) tax rate notices on December 22, 2017. The average SUI tax rate for 2018 remains at 1.95%, the same as for 2016 and 2017.
Combined with the elimination of the bond assessment, the overall average tax rate for 2018 decreases from 2.63% for 2017 to 2.0% for 2018. These rates include the 0.05% Career Enhancement Program (CEP) surcharge.
The average cost per employee decreases to $610 in 2018, down from $775.85.
SUI Taxable Wage Base Increases for 2018
The SUI taxable wage base increases to $30,500 for 2018, up from $29,500 for 2017.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.