Nebraska payroll taxes for employers (2026)

How Nebraska payroll differs from its neighbors

The two-tier wage base lands hardest on employers with the highest rates. Most employers pay on the first $9,000, but an employer that lands in category 20 pays the 5.40% top rate on the first $24,000. That is 5.40% x $24,000 = $1,296.00 per worker, against $112.50 for a new employer. Nebraska calls its levy a combined tax, and 20% of whatever combined rate you pay is allocated to the State Unemployment Insurance Tax (SUIT); you do not pay SUIT on top.

• Construction starts at the ceiling: new construction employers pay 5.40%, the same as the maximum rate.
• $15.00 minimum wage for employers of 4 or more, with a $2.13 tipped cash wage. Since July 18, 2026, workers aged 14 and 15 may be paid $13.50.
• Bonus withholding dropped: the 2026 Circular EN sets a flat 3.5% supplemental rate, down from 5%. Form W-3N is due January 31.
• Changing paydays takes notice: you set your regular paydays, but changing them takes 30 days' written notice to employees (Neb. Rev. Stat. 48-1230).
• Final pay in two weeks or less: the next regular payday or within 2 weeks of termination, whichever is sooner, for quits and firings alike.
• Workers comp from one employee, for resident and nonresident employers working in Nebraska, with agricultural exemptions (48-106).
• PEOs register with NDOL, which publishes a public listing of registered PEOs.

Nebraska has no state paid leave or disability payroll program.

Nebraska employer payroll facts at a glance

The cost of one $50,000 employee in Nebraska

For a new employer outside construction, the state line is small:

A new construction employer at 5.40% pays 5.40% x $9,000 = $486.00, for $4,353.00 in total. An employer in category 20 pays $1,296.00 on the $24,000 base, for $5,163.00. Our 2026 SUTA rate list shows the other states, and the 2026 minimum wage table covers hourly pay.

Setting up as a Nebraska employer

1. Get a federal EIN.
2. Open your UI tax account with NDOL. Its guide, Establishing Your NDOL Tax Account, is linked from dol.nebraska.gov/UITax.
3. Register for income tax withholding with the Nebraska Department of Revenue and use the 2026 Circular EN tables.
4. Report new hires within 20 days through the state new hire portal (ne-newhire.com); the Department of Health and Human Services explains the rules.
5. Buy workers comp before the first employee starts.
6. Designate your regular paydays in writing.

Nebraska payroll services and PEOs

Nebraska payroll is mostly simple, so price and support should decide. Two settings to confirm: the 3.5% supplemental rate (an old 5% default over-withholds every bonus) and, if your rate notice ever shows category 20, the $24,000 base. If you are weighing a PEO, check that it is on the NDOL listing.

Start with our payroll software rankings and the true cost of payroll services. For bundled benefits and workers comp, see the PEO comparison. Neighbors Iowa and Kansas use very different wage bases.