Unemployment Insurance Tax (FUTA/SUTA): Nebraska

Federal law and guidance on this subject should be reviewed together with this section.

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

Summary

• Nebraska uses the ABC Test to determine who is an employee for state unemployment insurance (SUI) tax purposes. See ABC Test.
• The law defines wages for SUI purposes as all compensation for personal services, including salaries, commissions and bonuses and the cash value of all compensation paid in any medium other than cash. The annual total SUI tax rate is based on a range of rates. See SUI Taxable Wages; Contribution Rates.
• The Nebraska anti-SUTA dumping law mirrors the federal SUTA Dumping Prevention Act. Under state law, employers that knowingly attempt to manipulate businesses to get a lower tax rate are liable for serious penalties. See SUTA Dumping.
• The state permits voluntary contributions to lower SUI tax rates. Contributions may be lowered one rate category. See Voluntary Contributions.
• An employer that is required to make unemployment insurance contributions must file quarterly reports. Certain employers may apply for permission to file annually. In addition, employers that operate more than one establishment in Nebraska may be requested to submit Multiple Worksite Reports. See Quarterly Reporting Requirements; Multiple Worksite Reporting.
• Employers must respond to information requests from the Department of Labor within 10 days. See Requirement to Respond to Information Requests.
• All employers in Nebraska must maintain records for each employee for four years and keep them available for inspection by the state Department of Labor. See Recordkeeping Requirements.