Reporting a change or error
If you’ve discovered an error on a previously submitted quarterly Combined Tax Report or Wage Report you can download a correction form and submit the correction by mail. Click here* to download the U.I. 11A Adjustment form now.
If you need to change your mailing address or report some change in the ownership or status of your business you can do that as well by downloading a form. Click here* to download a Notice of Change Form now.
If you need to talk to someone, click here to get the name and phone number of your closest unemployment insurance tax representative.
*Requires Adobe Acrobat Reader
Controlling unemployment costs
Here are a few suggestions on ways to control your unemployment costs:
Federal Unemployment Tax (FUTA)
Most employers pay federal unemployment tax to the IRS. The federal unemployment tax is in addition to state unemployment tax. The tax is reported to the IRS by January 31, each year on IRS Form 940 or 940EZ. Employers who have a liability of $500 or more at the end of any calendar quarter are to make a quarterly deposit of FUTA along with their federal withholding payment.
The state and federal unemployment insurance tax systems are interrelated. All employers have a basic FUTA tax rate of 6.2% on the first $7,000.00 paid to each employee each year. However, if the employer is current with state unemployment insurance contributions, the employer gets a 5.4% FUTA credit so the effective FUTA rate becomes .8% on the first $7,000.00.
Click here to view the Federal Unemployment Tax Act webpage.
It is common to encounter misconceptions about who is and who is not an independent contractor. For Nebraska state unemployment insurance purposes, services provided by an Independent contractor are exempt from employment. This means no tax is owed and no benefits can be paid based on services provided as an independent contractor. However, Nebraska revised statutes (§48-604(5)) include a definition or test to define an independent contractor relationship and it is this statute that controls who is or is not an independent contractor. The requirements extend far beyond simply calling an individual an independent contractor or having a worker sign an independent contractor agreement.
The statute creates a three-part conjunctive test which is not the same as the common law or 20 point test used by the Internal Revenue Service. All three parts of the test must be met for an individual to be exempt from employment as an independent contractor. The test is sometimes referred to as the A-B-C test. Payment for services will be considered employment unless and until it can be shown to the satisfaction of the commissioner that:
If you need more information concerning independent contractors, please contact your field representative.
Experience rate abuse
Instances of abusing state unemployment insurance tax rate systems across the country have been brought to light in the recent past. The term “SUTA dumping” refers to attempts to “dump” a high experience tax rate in order to obtain an artificially low tax rate. SUTA stands for “State Unemployment Insurance Tax Act” - a generic term for a state’s unemployment insurance program. SUTA dumping unfairly allows one employer to escape the true cost of unemployment insurance and shift that cost to other employers.
SUTA dumping as well as advising others to participate in SUTA dumping is a felony under state statute and carries civil penalties as well. In addition to judicial remedies, SUTA dumpers will be assigned penalty tax rates for future years. Nebraska Workforce Development advises employers to be wary of schemes being promoted to reduce unemployment insurance costs by manipulating accounts, transferring employees or creating artificial structures for reporting payroll.
Other employment tax related responsibilities
New employers need to be aware of the following responsibilities concerning employment taxes.
Click here to find links to these and other resources.
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