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Payroll and Benefits Guide United States – Nebraska

Last updated: Mar 29, 2023

Currency
United States Dollar (USD)
Employer Taxes
14.90% – 20.30%
Payroll Frequency
Monthly
Employee Costs
0%
Capital
Lincoln
Date Format
mm/dd/yyyy
Fiscal Year
1 January- 31 December

Contributions

Employer

Employer Payroll Contributions

0.00% – 5.40% (Max taxable wages is 9,000 USD for category 1-19) Unemployment Insurance (State)
0.00% – 5.40% (Max taxable wages is 24,000 USD for category 20) Unemployment Insurance (State)
1.25% (Voluntary Contribution permitted) Unemployment- New Employer (State)
6.20% (Maximum taxable wages is 160,200.00 USD) FICA Social Security (Federal)
1.45% FICA Medicare (Federal)
0.60% – 6.00% (Maximum taxable wages is 7,000 USD) FUTA (Federal Unemployment Tax Act)  The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to0.6%.
14.90% – 20.30% Total Employment Cost

Employee

Employee Payroll Contributions

7.65% – 8.55% Total Employee Cost
6.20% (Maximum taxable wages is 160,200.00 USD) FICA Social Security (Federal)
1.45% FICA Medicare (Federal)
0.90% Additional tax on earnings over 200,000 USD (High-income earners also pay an additional 0.90% in Medicare taxes)

Employee

Employee Income Tax

State Employee Income Tax
State Tax – Single Filer
2.26% 0 USD to 500 USD
3.22% 500 USD to 1,623 USD
4.91% 1,623 USD to 2,351 USD
6.20% 2,351 USD to 2,895 USD
6.39% 2,895 USD to 5,606 USD
6.75% 5,606 USD and above
Married taxpayers filing jointly
2.26% 0 USD to 968 USD
3.22% 968 USD to2,409 USD
4.91% 2,409 USD to 3,748 USD
6.20% 3,748 USD to 4,651 USD
6.59% 4,651 USD to 6,168 USD
6.95% 6,168 USD and above
Standard Deduction and Personal Exemption
Single 7,900 USD
couple /Married Filing Jointly 15,800 USD
Personal exemption
Single 157 USD
Couple /Married Filing Jointly 314 USD
Dependent 157 USD
Federal Employee Income Tax
Federal Tax – Singles
10.00% Up to 11,000 USD
12.00% 11,001 USD to 44,725 USD
22.00% 44,726 USD to 95,375 USD
24.00% 95,376 USD to 182,100 USD
32.00% 182,101 USD to 231.250 USD
35.00% 231,251 USD to 578,125 USD
37.00% 578,126 USD or more
Federal Tax – Married, filing jointly
10.00% Up to 22,000 USD
12.00% 22,001 USD to 89,450 USD
22.00% 89,451 USD to 190,750 USD
24.00% 190,751 USD to 364,200 USD
32.00% 364,201 USD to 462,500 USD
35.00% 462,501 USD to 693,750 USD
37.00% 693,751 USD or more
Federal Tax – Heads of Households
10.00% Up to 15,700 USD
12.00% 15,701 USD to 59,850 USD
22.00% 59,851 USD to 95,350 USD
24.00% 95,351 USD to 182,100 USD
32.00% 182,101 USD to 231,250 USD
35.00% 231,251 USD to 578,100 USD
37.00% 578,101 USD or more
Standard Deduction and Personal Exemption
13,850.00 USD Single
27,700.00 USD Married Filing Jointly
20,800.00 USD Head of Household

Minimum Wage

General

The state minimum wage in Nebraska is 9.00 USD per hour worked.

Payroll

Payroll Cycle

In general, employees in Nebraska are paid either semi-monthly or monthly, with payments on set dates as stipulated in the employee contract.

13th Salary

There is no legislation for 13th-month payments in Nebraska.

Working Hours

General

The standard working week in Nebraska consists of a maximum of 40 hours per week, 8 hours per day.

Overtime

Nebraska adheres to the Fair Labour Standards Act (FLSA), with overtime being paid when employees work more than 40 hours in a working week. The employer must pay 150% of the regular salary rate for the extra hours worked. Similarly, if employees are scheduled to work on weekends or rest days, no additional payment is required.

However, should an employer request an employee to work in exceptional circumstances on these days, then overtime will be paid at 150% of the regular salary rate for the extra hours worked.

The Wage and Hour Division (WHD) of the Department of Labour (DOL) is responsible for the administration and enforcement of the FLSA.

Working Week

Monday-Friday

Leave

Paid Time Off

Nebraska does not have any state statute governing the amount and payment of vacation time; however, it is common for employers to decide to offer paid vacation leave.  This must comply with employment law and must be stipulated in the employment contract or collective bargaining agreement.

Public Holidays

There are 11 official holidays, however private employers are not required to provide either time off or overtime pay on these days.

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA), which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA eligible employees are entitled to:

  • Twelve working weeks of leave in any one year for a child’s birth and to care for a new born child within one year of birth.
  • The employee may be entitled to leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • To care for the employee’s spouse, child, or parent who has a severe health condition.
  • A serious health condition that makes the employee unable to perform the essential functions of their job.
  • any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

OR

  • Twenty-six working weeks of leave during a single one-year period to care for a covered servicemember with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

Maternity Leave

Maternity leave falls under the FMLA.

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Paternity Leave

Paternity leave falls under the FMLA.

Parental Leave

Parental leave falls under the FMLA.

Other Leave

Nebraska law requires all employers to provide their full-time employees job-protected but unpaid leave for their duty as jurors or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.

In addition to the federal law USERRA, Nebraska law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.

Nebraska law requires that all employees who are registered to vote must be allowed to take up to two hours paid leave, to vote in any municipal, county, state or federal primary or general election.

Employees must provide reasonable notice to their employers to take time off to vote.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.”

This means that either the employer or the employee may end the employment relationship without giving notice or reason, provided it is not illegal, e.g. based upon the discrimination on the grounds of a category protected by law, etc as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination case-by-case.

Notice Period

In Nebraska, most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Nebraska, pay out of unused vacation time is not required by law. Generally though it is custom for employers to pay employees for unused vacation days, provided the employee gives some advanced notice.

Whilst there is no official notice period, the general practice is to provide two weeks’ notice.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers do not need not make severance payments to terminated employees. Employers who choose to offer severance need to have the provisions within the employee’s contract and agreed to by both parties.

Many employers choose to offer severance payment linked to the employee’s length of service., the most common practice being one week pay for every year of service.

Probation Period

No legal provision governs a formal “trial /probation period.” However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of between 3 and 6 months.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (“USCIS”) for an employment visa on behalf of the prospective employee.

If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).  To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request; the types of visas include:

  • H-1B – for applicants with a college degree hired to do specialised work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialised knowledge.
  • 0 – for people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
  • E-2 – for those with advanced degrees or exceptional ability.
  • E-3 – for skilled workers and professionals, as well as unskilled workers.
  • E-4 – Members of certain immigrant groups.
  • E-5 – Immigrant investors in US companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States.

The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorised to work in the United States.

VAT

General

Nebraska has a minimum combined 2023 Sales Tax Rate of 6.85% (State tax at 5.50% and Local tax average 1.35%).

Stay up to date on payroll & employment law changes

Version History

February 10, 2022
VAT: Nebraska has a minimum combined 2022 Sales Tax Rate of 6.05% (State tax at 5.50% and Local tax between 0% and 2.5% USD).
Payroll contributions and personal income tax rates have been updated.
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Payroll and Benefits Guide in United States – Nebraska

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Payroll and Benefits Guide
in United States – Nebraska

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

United States – Nebraska 2023
Download:
CSV
PDF
ICS
Day Date Holiday Notes
Sunday Jan-1 New Year's Day
Monday Jan-16 Martin Luther King Jr. Day
Monday Feb-20 President's Day
Monday May-29 Memorial Day
Monday Jun-19 Juneteenth Independence Day
Tuesday Jul-4 Independence Day July
Tuesday May-9 Labor Day
Monday Oct-9 Columbus Day
Friday Nov-10 Veterans Day
Thursday Nov-23 Thanksgiving Day
Monday Dec-25 Christmas Day