The below content should be reviewed in conjunction with the in-depth federal coverage of this topic provided above.

Authors: Kathryn E. Jones and Meghan M. Blinn, Kutak Rock LLP

Summary

  • Wages paid to Nebraska residents who work inside or outside the state are subject to withholding. An employee is a Nebraska resident for income tax purposes if certain criteria are met. Nebraska income tax must also be withheld from wages paid to Nebraska nonresident employees for services performed in the state. See Withholding on Residents, Nonresidents and Expatriates.
  • Nebraska employers determine withholding using federal Form W-4, Employee's Withholding Allowance Certificate. See Employee's Withholding Allowance Certificate.
  • The withholding rate on supplemental wage payments, such as bonuses, is calculated differently depending on when the supplemental wage payments are made. See Supplemental Wages.
  • Each year employers must provide copies of federal Form W-2, Wage and Tax Statement, to each employee from whom any amount of Nebraska income tax was withheld, or would have been withheld under the approved tables and other methods if the employee had claimed no more than one withholding allowance. See Form W-2 Requirements.
  • Employers are required to keep records of wages paid and taxes withheld. See Recordkeeping Requirements.