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June 27, 2019
2019-1178

Nebraska law assigns higher SUI taxable wage base to maximum-rated employers

Recently enacted Nebraska legislation (LB 428) increases the state unemployment insurance (SUI) taxable wage base to $24,000 for employers assigned the maximum rate (5.4% for calendar year 2019). This change is effective for calendar year 2020 while the taxable wage base remains $9,000 for all other employers.

Certain employers may file and pay SUI contributions annually

Also, a recent change to Nebraska Department of Labor regulations allows positive-balanced non-delinquent employers, upon approved application, to file SUI contribution returns and pay the associated taxes on an annual basis, rather than quarterly. Employers must still file wage detail reports on a quarterly basis.

Employers desiring to file and pay SUI contributions annually must apply by February 15 of the year for which the election is made. This change is effective for calendar year 2020. (220 Neb. Admin. Code Section 001(B))

For more information on Nebraska SUI taxes, see the Department's website.

Ernst & Young LLP insights

Nebraska is now one of three states with more than one SUI wage base. Rhode Island imposes a higher SUI taxable wage base to employers assigned the maximum SUI tax rate and Michigan assigns a higher taxable wage base to delinquent employers.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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