Payroll Nebraska, Unique Aspects of Nebraska Payroll Law and Practice

The Nebraska State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is: Department of Revenue Nebraska State Office Bldg. 301 Centennial Mall S. PO Box 94818 Lincoln, NE 68509-4818 (402) 471-2971 (800) 742-7474 http://www.revenue.state.ne.us/index.html Nebraska does not require you to use a state form to calculate state income…

The Nebraska State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is:

Department of Revenue

Nebraska State Office Bldg.

301 Centennial Mall S.

PO Box 94818

Lincoln, NE 68509-4818

(402) 471-2971

(800) 742-7474

http://www.revenue.state.ne.us/index.html

Nebraska does not require you to use a state form to calculate state income tax withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401 (k) to be treated in the same manner as the IRS code allows. In Nebraska cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401 (k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

In Nebraska supplementary wages are taxed at a 5% flat rate.

You may file your Nebraska State W-2s by magnetic media if you choose to.

The Nebraska State Unemployment Insurance Agency is:

Department of Labor

550 S. 16th St.

PO Box 94600

Lincoln, NE 68509-4600

(402) 471-9835

http://www.dol.state.ne.us/

The State of Nebraska taxable wage base for unemployment purposes is wages up to $ 7000.00.

Nebraska has optional reporting of quarterly wages on magnetic media.

Unemployment records must be retained in Nebraska for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; pay pay periods and pay dates; date and circumstances of termination.

The Nebraska State Agency charged with enforcing the state wage and hour laws is:

Department of Labor

Division of Safety

State Office Bldg.

301 Centennial Mall South

PO Box 95024

Lincoln, NE 68509-5024

(402) 471-2239

http://www.dol.state.ne.us/

The minimum wage in Nebraska is $ 5.15 per hour.

There is also no general provision in Nebraska State Law covering paying overtime in a non-FLSA covered employer.

Nebraska State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

  • Employee's name
  • Employee's address
  • Employee's social security number
  • Employer's name
  • Employers address
  • Employer's Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a $ 25.00 penalty for a late report in Nebraska.

The Nebraska new hire-reporting agency can be reached at 888-256-0293 or 402-691-9957 or on the web at [http://www.nenewhire.com]

Nebraska does allow compulsory direct deposit but the employee's choice of financial institution must meet federal regulation E regarding choice of financial institutions.

Nebraska has no State Wage and Hour Law provisions concerning pay stub information.

Nebraska requires that employee be paid on paydays designated by employer or agreed to by employer and employee.

In Nebraska there are no statistical requirements relating to lag time between when the services are performed and when the employee must be paid.

Nebraska payroll law requires that involuntarily terminated employees must be paid their final pay earlier of next regular payday or within 2 weeks and that voluntarily terminated employees must be paid their final pay earlier than next regular payday or within 2 weeks.

There is no provision in Nebraska law concerning paying dismissed employees.

Escheat laws in Nebraska require that unclaimed wages be paid over to the state after one year.

The employer is further required in Nebraska to keep a record of the wages abandoned and turned over to the state for a period of 7 years.

Nebraska payroll law mandates no more than $ 3.02 of minimum wage may be used as a tip credit.

In Nebraska the payroll laws covering mandatory rest or meal breaks are only that manufacturing employees must have a 30-minute meal period between noon and 1 pm or another suitable hour.

There is no provision in Nebraska law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines.

The Nebraska agency charged with enforcement Child Support Orders and laws is:

Child Support Enforcement Office

Department of Health and Human Services

PO Box 94728

301 Centennial Mall So., 5th Fl.

Lincoln, NE 68509-4728

(402) 479-5555

http://www.hhs.state.ne.us/cse/cseindex.htm

Nebraska has the following provisions for child support discounts:

  • When to start Withholding? First pay period after receipt of notice.
  • When to send Payment? Within 7 days of Payday.
  • When to send Termination Notice? 30 days after termination.
  • Maximum Administrative Fee? $ 2.50 per month.
  • Withholding Limits? Federal Rules under CCPA.

Please note that this article is not updated for changes that can and will happen from time to time.