Nebraska Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Nebraska.
Nebraska imposes a higher minimum wage rate than the one required by the federal government in the Fair Labor Standards Act (FLSA). This is similarly reflected in the state's higher tip credit rate.
When it comes to processing payroll, Nebraska-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
The below information was last updated January 30, 2024. It is not intended as legal or tax advice.
Nebraska Minimum Wage Rates
|
Wage Type |
Nebraska Rates |
Federal Rates |
|
Minimum Wage |
$12.00 |
$7.25 |
|
Tipped Minimum Wage |
$2.13 |
$2.13 |
|
Actual Tip Credit |
$9.87 |
$5.12 |
Nebraska State Income Tax (SIT) Rates
Nebraska's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:
| Filing Status | Income Tax Bracket [Over X] - [But not over Y] |
2024 Income Tax Rate |
| Single / Head of Household | $0 - $3,210 | 0.00% |
| $3,210 - $6,290 | 2.26% of excess over $3,210 | |
| $6,290 - $20,440 | $69.61 + 3.22% of excess over $6,290 | |
| $20,440 - $29,620 | $525.24 + 4.91% of excess over $20,440 | |
| $29,620 - $37,610 | $975.98 + 5.77% of excess over $29,620 | |
| $37,610 - $70,630 | $1,437.00 + 5.94% of excess over $37,610 | |
| $70,630 or greater | $3,398.39 + 6.10% of excess over $70,630 | |
| Married | $0 - $7,680 | 0.00% |
| $7,680 - $12,190 | 2.26% of excess over $7,680 | |
| $12,190 - $30,360 | $101.93 + 3.22% of excess over $12,190 | |
| $30,360 - $47,230 | $687.00 + 4.91% of excess over $30,360 | |
| $47,230 - $58,600 | $1,515.32 + 5.77% of excess over $47,230 | |
| $58,600 - $77,710 | $2,171.37 + 5.94% of excess over $58,600 | |
| $77,710 or greater | $3,306.50 + 6.10% of excess over $77,710 |
|
Additional Nebraska SIT Details |
|
|
Supplemental Withholding Computation |
5.00% |
|
Valid Filing Statuses |
|
|
Exemptions |
Number of allowances |
|
Form W-4 |
Form W-4N |
|
Reconciliation Frequency |
Annual |
Nebraska State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
Nebraska SUI Tax Details |
|
|
Taxable Wage Base |
$9,000 or $24,000* |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.00% - 5.40% |
|
Rates for New Employers |
1.25% |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
Yes; due on or before February 28 every year |
*Category 20 employers and employees only.
Nebraska State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Nebraska, however, doesn't require employers to collect an SDI tax.
Miscellaneous Nebraska Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Nebraska currently has no reciprocal agreements with any other states.
This doesn’t mean, however, that interstate workers living in Nebraska pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
Paid Sick Leave (PSL)
The state of Nebraska doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.
Paid Family and Medical Leave (PFML)
The state of Nebraska doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
Nebraska Employer Registration
The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Department of Labor for unemployment tax topics.
|
Registration Details |
Department of Revenue |
Department of Labor |
|
Phone |
(402) 471-5729 | (402) 471-9898 |
|
Online Registration |
Online Business Registration | NEworks Registration Page |
|
Registration Form |
Form 20 | UI Form 1 |
|
Registration Instructions |
Online and paper registration options are available. Account numbers will be issued after the online process or in 2 weeks via mail. | Online and paper registration options are available. Account numbers will be issued in 30 days via online process or in 45 days via mail. |
|
Employer Self-Service Login |
NebFile Homepage | NEworks Login Page |
Additional Nebraska Payroll Tax Resources
- Department of Revenue Tax Calendar
- Department of Labor Business Homepage
- Department of Labor Standards Page
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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