If required to pay unemployment tax, employers can take a credit against their Federal Unemployment tax due for the amounts paid to the Nebraska state unemployment insurance fund. This credit cannot be more than 5.4 percent of taxable wages. Unemployment taxes paid are tax deductible expenses when filing income tax forms. Unemployment tax is paid by the employer and not deducted from the employee's wages. The purpose of worker's compensation is to compensate an employee for the costs resulting from work-related injuries or illnesses, regardless of fault.
Compensation covers all reasonable medical costs incurred because of the injury or illness.
Additionally, wage benefits are paid if the injury or illness prevents the employee from working for more than seven days. The wage benefits are two-thirds of the employee's average weekly wage. The duration of wage benefits varies depending on whether the disability is total or partial. Agricultural employers are not required, but may choose, to carry worker's compensation on their employees. Worker's compensation insurance policies are purchased from private insurance companies, not from the state.