August 23, 2023
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.
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.
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor