Nebraska Nonresident Employee Tax Percentage

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Nebraska Nonresident Employee Tax Percentage

Background

If you have an employee who is not a resident of Nebraska, you will need to enter a non-resident percent of Nebraska state income tax to be withheld.  By default, this field is blank, which will tax the employee at the same rates as Nebraska residents.  For nonresident individuals performing personal services, enter the percent of income tax to be withheld, either 4% or 6% of the regular tax rate, based on Nebraska Circular EN.

For further information, see this guide for withholding income tax for Nonresident Individuals Performing Services in Nebraska.

For new customers adding employees in the wizard, this field is found on the employee’s Tax Information page.  For employees added after the wizard, this is found under:

  • Payroll > Employees > Employee List > Click the employee name > Taxes > Edit
  • Under the State and Local Withholding section, for the Nonresident Percentage, enter the nonresident tax percentage to be withheld (either 4% or 6%).  Do not enter 0, as this will result in zero tax withholding.
  • Click Save.

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