Nebraska Using Array System to Set Unemployment Insurance Tax Rates

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Each November, the Nebraska Department of Labor (NDOL) sets the employer Unemployment Insurance combined tax rates for the coming calendar year. Nebraska law prescribes an Array System to stabilize the Unemployment Insurance Trust Fund so that it is sufficient to cover benefits based upon wages paid, and solvent in the event of unexpected increases in unemployment.

Employer accounts are ranked, or arrayed, based on experience ratios.  Experience ratios, or ratings, are determined by dividing the balance in the employer’s experience account, all previous contributions (taxes credited to the employer’s experience account) paid through October 31 minus any benefit charges, by the employer’s average taxable payroll for the four preceding tax rating periods (October 1 through September 30).

Employers are assigned to one of 20 rate categories, with category 1 being employers with the highest (best) experience rating and lowest tax rate, and category 20 the employers with the lowest experience ranking and highest tax rate.  Each category is limited to 5 percent of the state’s total taxable wages for the four quarters ending September 30.  Categories do not have an equal number of tax-rated employers, but do have approximately equal amounts of taxable wages. To get the current tax rates or for more information, visit, email or call (402) 471-9898.

Providing timely and accurate information can help reduce benefit overpayments and experience account charges.  Paperless E-Response to requests for employee separation information is now available.  To learn more, visit

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