Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 316 - NEBRASKA DEPARTMENT OF REVENUE › Chapter 21 - PROPOSED INCOME TAX WITHHOLDING REGULATIONS › Section 316-21-006 - DETERMINING INCOME TAX WITHHOLDING ON WAGES PAID TO A NONRESIDENT

Current through June 17, 2024
006.01 An employer must deduct and withhold
				Nebraska income tax from all wages paid to an employee who is a nonresident of
				Nebraska for services performed in Nebraska. The income tax withholding to be
				deducted is determined according to the methods in
				Reg-21-004. If
				the work of a nonresident employee is performed entirely in Nebraska, his or
				her employer must deduct and withhold income tax from all wages paid to the
				employee. Wages paid to a nonresident employee for work performed entirely
				outside of Nebraska are not subject to Nebraska income tax
				withholding.
006.02 If a
				nonresident employee works partly in and partly outside Nebraska, the employee
				may file a Nebraska Nonresident Employee Certificate for Allocation of
				Withholding Tax, Form 9N, with his or her employer so that the correct amount
				of Nebraska income tax withholding may be determined. This section does not
				apply to income tax withholding on gambling winnings, pensions and annuities,
				nonresidents performing personal services substantially in Nebraska, or persons
				or contractors receiving payments from another contractor for construction
				services performed in Nebraska. The requirements of Reg-21-004.05 through
				Reg-21.004.09 apply in these situations.
006.03 The employer may withhold Nebraska
				income tax on the basis of the apportionment shown by the nonresident employee
				on his or her Form 9N, but must make necessary adjustments during the year so
				that the proper amount of income tax is withheld and deducted from the
				employee's wages. For the purpose of making these adjustments, the portion of
				the employee's wages which is paid for work performed in Nebraska is determined
				as follows:
006.03A If the work is performed
				by a traveling sales representative, agent, or other employee whose pay is
				based directly on the volume of business transacted by him or her, the amount
				attributable to work in Nebraska is that portion of the wages received from
				business transacted by the employee in Nebraska bears to the total volume of
				business transacted.
Example:
Employee's Nebraska sales =
$1,000
Employee's total sales =
$5,000
Nebraska's portion of total sales =
20%
Nebraska withholding on total from tables =
$300
Multiplied by the Nebraska portion of total sales =
20%
Nebraska income tax withholding =
$60
006.03B For employees paid on an hourly
				basis, the amount of wages attributable to work in Nebraska is that portion of
				the total wages, which the total number of hours worked in Nebraska bears to
				the total number of hours worked.
Example:
Employee's monthly Nebraska hours =
80
Employee's monthly total hours =
160
Nebraska portion of hours =
50%
Nebraska withholding from tables =
$300
Multiplied by the Nebraska portion of hours =
50%
Nebraska income tax withholding =
$150
006.03C For employees who are paid on a
				per-mile basis, the amount of wages attributable to work in Nebraska is that
				portion of the total wages, which the total number of miles traveled monthly in
				Nebraska bears to the total number of miles traveled monthly.
Example:
Employee's monthly Nebraska mileage =
2,000
Employee's monthly total mileage =
10,000
Nebraska portion of mileage =
20%
Nebraska withholding from tables =
$300
Multiplied by Nebraska portion of mileage =
20%
Nebraska income tax withholding =
$60
006.03D For all other employees, the portion
				of wages attributable to work in Nebraska is that portion of the total wages
				paid for working days in Nebraska bears to the total wages paid, not counting
				nonworking days. Nonworking days means all days given off work, for example
				weekends, holidays, and days absent because of illness, personal injury,
				vacation, or leave with or without pay.
Example:
Employee days worked in Nebraska in the month =
10
Total employees days worked in the month =
20
Nebraska portion of the total days =
50%
Nebraska withholding from tables =
$300
Multiplied by the Nebraska portion of the days =
50%
Nebraska income tax withholding =
$150
006.03E The apportionment calculations and
				examples in this section do not apply to income tax withholding on gambling
				winnings, pensions and annuities, nonresidents performing personal services
				substantially in Nebraska, or persons or contractors receiving payments from
				another contractor for construction services performed in Nebraska. The
				requirements of Reg-21-004.05 through Reg-21.004.09 apply in these
				situations.