Nebraska’s average unemployment insurance tax rate is decreasing next year.
The average rate will be 0.75 percent, compared to 1 percent this year.
Gov. Pete Ricketts says the state is paying out fewer claims.
“From January of this year through September, compared to January of last year through September, we paid out $13.4 million fewer in claims, despite the fact that unemployment ticked up, slightly,” Gov. Ricketts told reporters at a news conference.
This is the sixth year in a row the average unemployment insurance tax rate has declined in Nebraska.
Labor Commissioner John Albin says the state’s re-employment program is helping Nebraskans find work faster.
“That is why we believe it is the primary driver in reducing the amount of unemployment benefits paid and we’re really happy to administer this program that presents a win-win – claimants are reemployed more quickly and employers end up paying less taxes,” Albin told reporters.
The state estimates companies will pay $17.6 million less next year than they spent this year on unemployment insurance.
“That is money that can be reinvested, can be used to create more jobs, and grow Nebraska,” Gov. Ricketts says. “Companies will have more resources, because they’re not paying those unemployment taxes at the rate they were paying this year. We’re helping companies save money – tax relief – so they can reinvest.”