June 26, 2023
Nevada's Modified Business Tax to decrease effective July 1, 2023
The Nevada Department of Taxation (Department) announced that because the state's Modified Business Tax (MBT) collected in the previous fiscal year exceeded the forecasted amount by 4%, the MBT rates will decrease proportionately, effective July 1, 2023.
MBT rates effective July 1, 2023
Employers subject to Nevada state unemployment insurance under NRS 612 are subject to the MBT except for non-profit organizations, Indian tribes, political subdivisions and employers with only household employees.
The MBT is paid on total gross wages and taxable tips as reported quarterly to the Nevada Employment Security Division (ESD) on Form NUCS 4072 less employee health benefits paid by the employer. For general businesses only, the first $50,000 of gross wages is not taxable.
When employers register with the ESD for state unemployment insurance they are automatically registered with the Department for the MBT.
To determine the MBT rate that applies, a business must self-report as general business, financial institution or mining.
For more information see the Department's frequently asked questions.
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor
EY Payroll News Flash