The Nebraska Department of Labor oversees the state’s workplace laws. This Article Covers laws that affect payroll procedures in Nebraska like Nebraska laws, federal laws, employees and independent contractors, payroll forms, workers’ compensation, and filing taxes.
Payroll Set Up in Nebraska
- Set up your business as an employer
- Register with Nebraska
- Create your payroll process
- Have employees fill out forms
- Review and approve time sheets
You must establish regular paydays. Pay employees by the next regularly scheduled payday or within two weeks when they leave. File taxes electronically if remittances were over $5,000. Get workers’ compensation coverage.
Nebraska Payroll Taxes
- Personal income tax
- Unemployment insurance
- Workers’ compensation
Payment of Income Tax in Nebraska
To pay individual income tax in Nebraska, go to the Nebraska Department of Revenue website. Under Individuals, navigate to "Make a Payment Only". You’ll be redirected to payment options. Click "Estimated Income Tax".
You can pay estimated Nebraska taxes online through your bank. Payments will show "Nebraska Revenue" as the payer on your bank statement. You can also pay state taxes with a credit card, regardless of whether you file electronically or on paper.
Nebraska uses a progressive income tax system based on tax brackets. As your income rises, you pay higher taxes. Tax credits can reduce your tax liability if you qualify. The Nebraska Tax Form 1040N Instruction Book details how to complete your state tax return. It is published annually with the latest tax laws and regulations.
Nebraska income taxes fund state services like education, healthcare, and infrastructure. Employees pay more taxes as their income rises. Businesses pay various state taxes beyond federal payroll taxes. These include income tax, sales tax, withholding tax, and unemployment tax. Most small businesses don’t pay income tax directly. Instead, it passes through to owners’ personal returns. 2023 Nebraska income tax rates range from 2.46% to 6.64%.