Change provisions relating to the combined tax rate under the Employment Security Law
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LB 297 — Change provisions relating to the combined tax rate under the Employment Security Law
Last action — Approved by Governor on March 25, 2025
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Legislature
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✓To Executive
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5Enacted
This bill has been enacted into law. Introduced January 15, 2025. Enacted.
Signed by Governor Jim Pillen (Republican) on March 26, 2025.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Cleared a recorded vote
Passed 2 recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
124 added · 137 removedPlain-language change summary
The recent amendments to Bill LB 297 revise how the combined tax rate for employers is calculated under Nebraska's Employment Security Law. Specifically, the changes clarify the conditions under which an employer's experience account affects their tax rate, keeping the focus on contributions and benefits over specified time periods. This is important because it aims to create a fairer and more accurate assessment of employer tax liabilities, potentially impacting the financial responsibilities of businesses in Nebraska.
LB297 LB297 2025 LEGISLATURELEGISLATIVE OFBILL NEBRASKA297 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor FIRSTMarch SESSION25, LEGISLATIVE2025 BILL 297 FINAL READING Introduced by Ibach, 44.
Read firstA timeBILL JanuaryFOR 15,AN 2025ACT Committee:relating to the Employment Security Law;
Business and Labor A BILL FOR AN ACT relating to the Employment Security Law;
Be it enacted by the people of the State of Nebraska, -1- LB297 LB297 2025 Section 1.
48-649.03 (1)48-649.03 (1) Once benefits have been payable from and chargeable to an employer's experience account throughout the preceding four calendar quarters and wages for employment have been paid by the employer in each of the two preceding four-calendar-quarter periods, the employer's combined tax rate shall be calculated according to this section.
(2) The employer's reserve ratio is the percent obtained by dividing (a) the amount by which the employer's contributions credited from the time the employer first or most recently became an employer, whichever date is later, and up to and including September 30 of the year the rate computation is made, plus any part of the employer's contributions due for that year paid on or before October 31 of such year, exceed the employer's benefits charged during the same period, by (b) the employer's average annual taxable payroll for the sixteen-consecutive-calendar-sixteen-consecutive-calendar-quarter quarter period ending September 30 of the year in which the rate computation is made.
For an employer with less than sixteen consecutive calendar quarters of contribution experience, the employer's average taxable payroll shall be determined based upon the four-calendar-quarterfour-calendar- quarter periods for which contributions were payable.
Category Experience Factor 1 0.00 2 0.25 3 0.40 4 0.45 5 0.50 -2- LB297 LB297 2025 6 0.60 7 0.65 8 0.70 9 0.80 10 0.90 11 0.95 12 1.00 13 1.05 14 1.10 15 1.20 16 1.35 17 1.55 18 1.80 19 2.15 20 2.60 -1- LB297 LB297 2025 Eligible experience rated employers shall be assigned to rate categories from highest to lowest according to their experience reserve ratio, with category one assigned to accounts with the highest reserve ratios and category twenty assigned to accounts with the lowest reserve ratios.
(4) The state's reserve ratio shall be calculated annually by dividing the amount available to pay benefits in the Unemployment Trust -3- LB297 LB297 2025 Fund and the State Unemployment Insurance Trust Fund as of September 30, plus any amount of combined tax owed by employers eligible for and electing annual payment status for the four most recent quarters ending on September 30 in accordance with rules and regulations adopted by the commissioner, by the state's total wages for contributory employers from the four calendar quarters ending on September 30.
Once the yield factor for the upcoming rate year has been determined, it is multiplied by the amount of unemployment benefits paid from combined tax during the four -4- LB297 LB297 2025 calendar quarters ending September 30 of the preceding year.
Voluntary contributions by employers may be made up to the amount necessary to qualify -2- LB297 LB297 2025 for one rate category reduction.
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AI-generated reading aid from the bill's amendatory text — verify against the official bill.
This bill amends the calculation of the combined tax rate for employers under the Employment Security Law in Nebraska.
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48-649.03
the state's reserve ratio is 0.70→ the state's reserve ratio is 1.00This change alters the reserve ratio threshold for adjusting the yield factor.
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48-649.03
the average combined tax rate is assigned to rate category twelve as established in subsection (3) of this section. In tax year 2025 only, the category twelve rate shall be 0.48.→ the average combined tax rate shall be assigned to rate category twelve as established in subsection (3) of this section. In tax year 2025 only, the category twelve rate shall be 0.48.This maintains the assignment of the average combined tax rate to category twelve with a specified rate for 2025.
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48-649.03
The combined tax rate shall be based upon the employer's experience rating record and determined from the employer's reserve ratio.→ The combined tax rate shall be based upon the employer's experience rating record and determined from the employer's reserve ratio.This clarifies the basis for calculating the combined tax rate.
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48-649.03
the planned yield is divided by the total taxable wages for contributory employers for the four calendar quarters ending September 30 of the previous year and carried to four decimal places to create the average combined tax rate for the rate year.→ the planned yield is divided by the total taxable wages for contributory employers for the four calendar quarters ending September 30 of the previous year and carried to four decimal places to create the average combined tax rate for the rate year.This reaffirms the procedure for calculating the average combined tax rate.
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48-649.03
Beginning January 1, 2025, through December 31, 2029, the final average combined tax rate shall be reduced by five percent.→ Beginning January 1, 2025, through December 31, 2029, the final average combined tax rate shall be reduced by five percent.This establishes a fixed timeline for the tax rate reduction.
Action History
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Approved by Governor on March 25, 2025
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Passed on Final Reading with Emergency Clause 45-0-4
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President/Speaker signed
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Presented to Governor on March 20, 2025
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Placed on Final Reading
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Advanced to Enrollment and Review for Engrossment
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Placed on Select File
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Advanced to Enrollment and Review Initial
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Placed on General File
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Notice of hearing for February 03, 2025
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Referred to Business and Labor Committee
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Date of introduction
Sponsors
- Teresa Ibach · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 48 not signed on
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (48)
48 members have not signed on to this bill.
Show all 48 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 45 | 0 | 0 | 4 |
| Total | 45 | 0 | 0 | 4 |
| % of votes cast | 92% | 0% | 0% | 8% |
How each member voted (49)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 37 | 0 | 0 | 12 |
| Total | 37 | 0 | 0 | 12 |
| % of votes cast | 76% | 0% | 0% | 24% |
How each member voted (49)
Subjects
Frequently asked questions
- Who sponsors LB 297?
- LB 297 is sponsored by Teresa Ibach.
- What is the current status of LB 297?
- This bill has been enacted into law. Introduced January 15, 2025. Enacted.
- Where can I track LB 297?
- Track LB 297 free on One Click Politics — get push/email alerts when it moves.
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