Tax News Update    Email this document    Print this document  

August 23, 2023
2023-1439

Nebraska law changes deadline for submitting unemployment insurance voluntary contributions

Governor Jim Pillen signed into law LB191, which, effective May 26, 2023, changes the due date of state unemployment insurance (SUI) voluntary contributions and makes other changes affecting employers.

Voluntary contributions

Nebraska law allows experience-rated employers to make voluntary contributions that may reduce their combined SUI tax rate to the next lower rate. The Nebraska Department of Labor (Department) sends to eligible employers each December information concerning the voluntary contribution required to affect a lower SUI tax rate for the subsequent calendar year along with complete experience rating information. (Nebraska Department of Labor, Employer's Guide to Unemployment Insurance, Rev. 9-14-2022.)

Under prior law, for the lower SUI tax rate to apply in the current calendar year, employers were required to make voluntary contributions on or before January 10. LB191 extends this deadline to February 28 effective for voluntary contributions paid for calendar year 2024.

Notice of determination of liability or combined SUI tax rate

LB191 requires that the Department "promptly" notify employers of a determination of liability or the combined SUI tax rate either electronically or by mailing a notice to the last known address of the employer.

Employers newly liable for Nebraska SUI tax on or after May 26, 2023, must, at the time of registering for a Nebraska SUI account, designate their preferred method of receiving notices (electronic or mail) and provide the name of their designated representative, if applicable.

Nonresident contractor fee

LB191 removes the requirement that nonresident contractors pay a fee of $25 for registering each contract to which the contractor is a party if the contract price or compensation to be received is more than $10,000.

Ernst & Young LLP insights

The ability to make voluntary SUI contributions gives employers an opportunity to potentially lower the SUI taxes they pay; however, careful evaluation is needed to confirm that this advance SUI payment will result in tax savings. LB191 gives employers some extra time to perform this vital evaluation.

———————————————

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

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement