|
|

Nebraska Withholding: What you need to know

All Nebraska employers are required to deduct state income tax from the paychecks of both resident and nonresident employees. Withholding may be based on wage bracket withholding tables or the percentage method tables provided by the Department of Revenue. If federal tax is calculated by annualized wages, average estimated wages, cumulative wages, or part-year employment methods, state taxes may be calculated in the same way.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
The number of withholding allowances is determined from the federal Form W-4 filed by the employee. Employers may not accept different W-4s for federal and state purposes. Employees, however, may request additional state withholding in writing.
A flat rate of 5 percent is used to calculate withholding on supplemental wages and taxable awards that are subject to the 25 percent federal withholding rate.
Employers that employ 25 or more employees at any time during the year must withhold state income tax for each employee at the rate of at least 3 percent of gross wages, less tax-qualified deductions. The tax commissioner has set an alternate minimum level of acceptable withholding of 50 percent of the withholding table rate for a single person with one withholding allowance or of a married person with two allowances. If withholding is imposed at this level (or greater), there will be no imposition of any employer penalty. Withholding at a rate below these amounts is allowed if the employee provides satisfactory evidence to the employer that a lesser state withholding amount is not an attempt to evade applicable state taxes.
The withholding tables in the 2008 Nebraska Circular EN remain in effect. The nonshaded area indicates withholding of at least 3 percent, or ...

>> Read more about Withholding

More on this topic:

State Requirements

National | Alabama | Arizona | Arkansas | California | Colorado | Delaware | District of Columbia | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | Utah | Vermont | Virginia | West Virginia | Wisconsin |

Nebraska Withholding Resources

Withholding Products

Taxation and Withholding Explained Webinar Recording
BLR Webinar: "Taxation and Withholding Explained: Compliance Tips for Multistate Employers""
Employment Taxes in Multiple States Webinar Recording
BLR Webinar: "Employment Taxes in Multiple States: Step-by-Step Calculation and Reporting Strategies""
Payroll Webinar Recording
BLR Webinar: "Payroll: How to Legally Handle Tax Levies and Garnishments""
IRS and ICE Audit Alert Webinar Recording
BLR Webinar: "IRS and ICE Audit Alert: How to Avoid and Manage Payroll and Recordkeeping Scrutiny""
Free Special Reports
Get Your FREE HR Management Special Report. Download Any One Of These FREE Special Reports, Instantly!
Featured Special Report
Claim Your Free Copy of Critical HR Recordkeeping

Record retention is complex and time consuming. However, in addition to complying with various federal and state laws, keeping good, well-organized records can be very helpful in documenting and supporting an organization’s employment actions.
Download Now!


This special report will discuss how you can ensure your records are in good order, and establish a record-retention policy.

Topics covered:
1. Hiring Records
2. Employment Relationships
3. Termination Records
4. Litigation Issues
5. Electronic Information Issues
6. Tips for Better Recordkeeping
7. A List of Legal Requirements

Make sure you have the information you need to know to keep your records in order.