Employers would follow revised unemployment tax and innovation funding rules

The Labor Commissioner would set the state unemployment insurance tax rate for the next calendar year and divide the combined tax between unemployment contributions and the state insurance tax. The rules would apply to employers subject to Nebraska's Employment Security Law. If the state insurance tax rate were zero, all of the combined tax would count as employer contributions. Otherwise, at least 80 percent would count as contributions and no more than 20 percent would count as the state insurance tax. Employers assigned a combined tax rate of at least 5.4 percent would have a zero state insurance tax rate, with all of their combined tax counted as contributions. The commissioner would determine the rate by December 1 for the following calendar year and designate fund allocations by December 31 each year.

Businesses seeking or receiving financial help under the Business Innovation Act would have to submit quarterly wage reports to the Labor Department. The requirement would cover any assisted entity that employs someone in Nebraska, even if the entity is not otherwise covered by the Employment Security Law. Reports would use forms and methods required by the Labor Commissioner. The requirement would apply to entities applying for assistance and to entities receiving assistance. The requirement would apply while an entity applies for or receives financial assistance under the Business Innovation Act.

The Department of Economic Development would use the Business Innovation Cash Fund to carry out the Business Innovation Act and, when necessary, pay unemployment benefits. The fund would support the act's innovation programs, but not the Bioscience Innovation Program or the other sections specifically excluded by the bill. Money would come from deposits required under the Employment Security Law. Up to five percent of an appropriation could be used for administrative expenses. The Labor Commissioner would determine whether money should be used for unemployment benefits. The fund would be used after money is deposited and remains available for authorized purposes.