Neb. Admin. Code tit. 220 — Contribution Tax

Chapter 1 Filing of Quarterly Tax and Wage Reports and Payment of Combined Tax

Neb. Admin. Code tit. 220, ch. 1 Filing of Quarterly Tax and Wage Reports and Payment of Combined Tax {#sec-220-nac-1 omnilex-key=us-ne-regs-official--title-220--220 NAC 1}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §§48-607, 48-661, 48-648 and 48-648.01.

A. Quarterly requirements:

(i) Quarterly combined tax reports and wage reports shall become due on the last day of the first month following the end of a calendar quarter. Quarterly combined tax reports and wage reports shall report wages for the quarter in which wages are paid or made available to the employee. A quarterly combined tax report is required of every liable employer each quarter even if no wages were paid during the quarter.

(ii) Except as provided in 220 NAC 1, paragraph 001(B), combined tax shall become due and be payable quarterly on the last day of the next month following the calendar quarter for which combined tax has accrued, except as otherwise provided herein.

(iii) Quarterly combined tax and wage reports and combined tax payments of employers who become newly liable for combined tax in any year shall become due on, and be paid on or before, the last day of the first month following the quarter wherein such individual or organization became an employer subject to the law. The first payment of such an employer shall include combined tax with respect to all wages paid for employment for such individual or organization for all completed calendar quarters since the first day of the calendar year.

(iv) Any employer may, upon application, be authorized to pay overdue combined tax in monthly installments. The entire balance shall become due upon either the demand of the Commissioner of Labor, or upon failure to make timely payment.

(v) The first combined tax payment of any employer that voluntarily elects to become liable for the payment of combined tax under the Employment Security Law shall include combined tax with respect to all wages paid for employment occurring on and after the dates stated in such approval.

(vi) When the regular filing date for any combined tax falls on Saturday, Sunday, or a state holiday, such combined tax will be due and payable on the next business day.

(vii) The Commissioner may advance the due date of an employer's combined tax to be earlier than the regular due date if the collection of the combined tax by the Department may be jeopardized by the later due date.

(viii) The Commissioner may, at his/her discretion, charge to a suspense or uncollectible debt account any unpaid combined tax due or any unpaid payments in lieu of contribution due when collection is unlikely. Any receivable charged to this account may be subsequently removed from the account and reactivated if it appears that collection of at least a portion of the receivable becomes possible. Charging a receivable debt to the suspense account shall not constitute a compromise or forgiveness of the debt.

B. Exceptions:

(i) Subject to the requirements of this chapter, an employer with a positive experience account balance on October 31 of any year that is eligible for experience rating and which has no delinquent tax payments may elect to pay taxes due for the following tax (calendar) year on an annual basis if the employer agrees to report hours worked by its employees on each quarterly wage report for the following tax year in addition to the wages paid to that employee. Hours worked by salaried employees may be reported as 40 hours per week or a lesser percentage if the salaried employee is employed on a less than full-time basis.

(ii). Combined tax owed by employers eligible for and electing annual payment status pursuant to this chapter shall become due and payable for the year to which the election applies on the last day of the January following the calendar year for which combined tax has accrued, except as otherwise provided in this chapter.

(iii) An employer electing to report hours worked by its employees on its quarterly wage reports and pay combined tax on an annual basis shall notify the commissioner of its election on or before February 15th of the year for which the election is made. No election is valid unless approved by the commissioner.

(iv) If an employer elects to pay combined tax annually pursuant to this chapter, but fails to provide the information on hours worked by each employee on its quarterly wage reports, the commissioner may revoke the employer’s election and require the employer to pay combined tax owed on a quarterly basis.

(v) The commissioner may revoke the annual payment status of any electing employer if the employer fails to report hours worked for any quarter or fails to pay the combined tax when due.

History

• Effective 2019-04-10

Chapter 2 Cash Value of Certain Remunerations

Neb. Admin. Code tit. 220, ch. 2 Cash Value of Certain Remunerations {#sec-220-nac-2 omnilex-key=us-ne-regs-official--title-220--220 NAC 2}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §48-602(29) and §48-607.

002 If board, lodging, or any other payment in kind considered as payment for services performed by a worker is in addition to or in lieu of (rather than a deduction from) money wages, the Commissioner shall determine or approve the cash value of such payment in kind, and the employer shall use these cash values in computing combined tax due under the law.

003. Where a cash value for board and lodging furnished a worker is agreed upon in any contract of hire, the amount so agreed upon shall, if more than the rates prescribed herein, be deemed the value of such board and lodging. Board and lodging furnished in addition to money wages shall be no less than the amount allowed by the Nebraska Department of Administrative Services for state employee travel reimbursement, (see, Nebraska DAS State Accounting Manual at http://www.das.state.ne.us/accounting/nis/am005.htm#expense).

History

• Effective 2012-01-16

Chapter 6 Voluntary Transfer of Experience Account

Neb. Admin. Code tit. 220, ch. 6 Voluntary Transfer of Experience Account {#sec-220-nac-6 omnilex-key=us-ne-regs-official--title-220--220 NAC 6}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §§48-654 and 48-607.

002. An employer that acquires the organization, trade, business, or substantially all the assets of another employer may assume the position of such employer with respect to the resources and liabilities of such employer's experience account as if no change had occurred. Partial transfers are governed by 220 NAC 7.

003. Upon being notified of the acquisition of a business by another as in section 002, the Department shall provide to the successor employer the latest available balance of the predecessor's experience account as well as the predecessor employer's combined tax rate. The Department may provide forms for the purpose of applying for a transfer of the account.

004. An employer which desires to assume the resources and liabilities of the experience account of a predecessor employer shall make, within one-hundred twenty days of the acquisition, an application for a transfer of such experience account. An application may be withdrawn at any time within one hundred eighty (180) days following the date of acquisition by the successor employer.

005. The Department shall, upon the receipt of an application for transfer, determine if any of the following circumstances apply and, if so, will not allow a transfer of an experience account:

A. If the predecessor or successor employer has not fully paid all combined taxes due within sixty (60) days after the successor employer has made application for a transfer;

B. If the predecessor employer had paid no wages during the most recent complete calendar year; or

C. If the successor employer does not provide necessary information as requested by the Department pursuant to an application for a transfer.

006. Whenever there is a merger of accounts and the merger did not take place as of the beginning of a calendar quarter, the combined tax rate for the merged accounts will become effective as of the beginning of the quarter following the merger.

007. The Department shall notify the predecessor and successor employers if a transfer of an experience account has been allowed or denied. Should either party desire to contest the decision, a written appeal must be filed with the Department within thirty (30) days from the date of mailing of the notice. An appeal by the predecessor or successor will make both parties to the appeal. Appeal hearings shall be conducted in the manner set out in 223 NAC 1.

008. A successor employer which continues to file combined tax reports and pay all combined taxes for predecessor employer and who fails to make an application with the Department for a transfer of the experience account within the time period provided in this chapter shall automatically receive the resources and liabilities of the predecessor employer's experience account.

009. Nothing in this chapter shall be read or interpreted to affect the provisions of Neb. Rev. Stat. §48-658 which states, in part, that an employer must notify the Department of Labor five days prior to the acquisition of another employer in order to avoid being liable for the combined tax due and unpaid of the previous employer.

010. The Department may redetermine a transfer allowed pursuant to this chapter whenever it finds that the transfer was granted on the basis of misrepresentations of fact, but in no case shall such redetermination be made more than four years after the date of the approval of the transfer.

History

• Effective 2014-12-27

Chapter 7 Mandatory Transfers of Experience Accounts

Neb. Admin. Code tit. 220, ch. 7 Mandatory Transfers of Experience Accounts {#sec-220-nac-7 omnilex-key=us-ne-regs-official--title-220--220 NAC 7}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §§48-654, 48-654.01 and 48-607.

002. If a successor acquires all or part of the business of a commonly owned, managed or controlled predecessor, a partial or full transfer of the predecessor's unemployment insurance account resources and liabilities is mandatory. The successor shall file a notice of acquisition and a statement setting forth the appropriate percentage of the predecessor's experience account which it believes should be transferred to it. Such notice of acquisition shall constitute the election of the successor, if not already liable, to become liable to the provisions of the Employment Security Law and shall provide such information as requested. The notice of acquisition shall be filed within thirty days from the date of business acquisition. In the case of a partial account transfer, information required to segregate the payroll shall be provided to the Department within sixty days from the date of the notice of acquisition The Department shall take action to process an account transfer or partial transfer which it considers to be mandatory under Neb. Rev. Stat. §48-654.01 based upon best information available should a successor fail to file a notice of acquisition or provide information requested.

003. Substantially common ownership, management or control exists if any individual or group of individuals has an influence on the decision making of the common entities beyond what would be considered minimal or inconsequential.

004. If the predecessor in a partial transfer situation does not provide payroll information within sixty days after request has been made, the Department shall proceed with the transfer and make its best estimate of the amount of payroll being transferred and the correct employer for each employee.

005. Notice of action taken on a transfer shall be promptly given to the predecessor and successor by the Department. Should either party desire to contest the decision, a written appeal must be received by the Department within thirty days from the date of mailing of the notice. An appeal by the predecessor or successor will make both parties to the appeal. Appeal hearings shall be conducted in the manner set out in 223 NAC 1.

006. In partial transfer cases, the Department shall assign to the transferee that portion of the taxable payroll experience represented by the portion of the business acquired. The Department shall also assign to the transferee that portion of the experience account of the transferor represented by the ratio of the sum of the taxable payrolls of the portion of the business acquired to the sum of the entire taxable payrolls of the transferor. The Department shall utilize wage information during the period of the current incomplete calendar year, if applicable, and the four completed calendar years immediately preceding the transfer. The transferee, if not already an employer, shall become an employer as of the date of the transfer.

007. The Department may redetermine a mandatory transfer or partial transfer made pursuant to this chapter whenever it finds that the transfer or partial transfer was granted on the basis of misrepresentations of fact, but in no case shall such redetermination be made more than four years after the date of approval of the transfer or partial transfer.

History

• Effective 2012-11-24

Chapter 8 Interest

Neb. Admin. Code tit. 220, ch. 8 Interest {#sec-220-nac-8 omnilex-key=us-ne-regs-official--title-220--220 NAC 8}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §§48-607 and 48-655.

002. Combined taxes or payments in lieu of contributions unpaid on the date on which they are due and payable, as prescribed by the Commissioner, shall bear interest at the rate of one and one-half percent per month from and after such date until payment plus accrued interest is received by the Commissioner. Interest so collected shall be paid into the Employment Security Special Contingent Fund.

003. Interest prescribed by law on overdue combined tax payments or payments in lieu of contributions shall accrue on and after the day following the due date of any combined tax payment or payment in lieu of contributions. Interest due shall be computed at the rate of one and one-half percent for each full month and for any period of less than one full month at the rate of one-thirtieth of one and one-half percent for each calendar day or fraction thereof.

004. Combined taxes or payments in lieu of contributions received from employers that owe combined tax or payments in lieu of contributions, interest, or a penalty shall first be applied to the penalty, then to interest, and then to combined taxes or payments in lieu of contributions. When full payment is in jeopardy, the Commissioner may apply payments first to amounts owed for combined tax or payment in lieu of contributions, and then to interest and penalties.

History

• Effective 2012-01-16

Chapter 9 Refunds of Overpaid Combined Tax

Neb. Admin. Code tit. 220, ch. 9 Refunds of Overpaid Combined Tax {#sec-220-nac-9 omnilex-key=us-ne-regs-official--title-220--220 NAC 9}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §§48-607 and 48-660.

002. An employer may claim a refund or credit adjustment. The claim shall be made in the manner prescribed by the Commissioner. The employer shall state the reason for its claim. The form shall be signed by the owner, a partner, or an authorized officer or employee of a corporation.

003. Applications for adjustments or refunds shall be made within four years after the date of such over-collection. The Unemployment Insurance Tax Administrator may determine the frequency of the refunds necessary for efficient administration within such period.

004. If a claim is allowed, the employer will be notified of the Department's decision including the method of repayment. Interest shall not accrue on overpaid combined taxes.

005. A denial of a claim under section 002 shall become final unless the employer files a request for a hearing. The request must be filed within thirty days of the date of the denial.

006. Hearings for review of a denial of a refund or credit adjustment shall be conducted in the manner set out in 223 NAC 1.

History

• Effective 2012-01-16

Chapter 11 Review and Redetermination of Combined Tax Rates of Employers

Neb. Admin. Code tit. 220, ch. 11 Review and Redetermination of Combined Tax Rates of Employers {#sec-220-nac-11 omnilex-key=us-ne-regs-official--title-220--220 NAC 11}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §§48-607 and 48-650.

002. An employer desiring to appeal a combined tax rate assigned to the employer shall file, within thirty days of the mailing of the notice of the combined tax rate assigned or within thirty days of the delivery of said notice in the absence of mailing, an application for review and redetermination. Said application must be received by a Department office prior to the expiration of the thirty-day limit.

003. An application for review and redetermination shall include the following:

A. The name, address, and official position of the person filing the application;

B. The name, address, and identification number of the employer; and

C. An explanation of the question involved, the reasons for seeking the review and redetermination, and the relief sought.

004. The Commissioner, upon receiving such an application, may summarily grant the relief sought, may deny the relief sought, or may grant a hearing when appropriate or if requested by the employer.

005. A hearing granted pursuant to this chapter shall be conducted in accordance with 223 NAC 1 to the extent that said chapter does not conflict with the provisions of this chapter or Neb. Rev. Stat. §48-650.

History

• Effective 2008-05-28

Chapter 12 Determination of Liability

Neb. Admin. Code tit. 220, ch. 12 Determination of Liability {#sec-220-nac-12 omnilex-key=us-ne-regs-official--title-220--220 NAC 12}

001 . This chapter is adopted pursuant to Neb. Rev. Stat. §§48-603, 48-607 and 48-650.

002 . The Commissioner may, at any time, determine that an employer is liable for additional combined tax for wages not previously reported to the Department. The Commissioner may also make a determination at any time determining whether an employer is liable for to the payment of combined tax under the Employment Security Law.

003 . Each employer shall complete a combined tax status determination form as prescribed by the Commissioner to determine if said employer is liable for the payment of combined tax. Services performed by an individual operating as a sole proprietor or services performed by partners of a partnership shall be exempt from liability.

004 . The Department may audit, at any time, an employer's financial records for the purpose of determining if the employer is liable for the payment of combined tax and, further, for the purpose of determining the amount of wages which have been paid but upon which no payment of combined tax has been made.

005 . The employer shall be informed any time a determination by the Department is made that it is either (1) a liable employer, or (2) liable for additional combined tax. A determination that the employer is liable for combined tax shall contain the basis for such determination.

006 . An employer may appeal a determination made pursuant to this chapter by a request to the Department within thirty days from the date of mailing such determination.

007 . Hearings on appeals from such determinations shall be conducted pursuant to 223 NAC 1 to the extent that the provisions of said chapter do not conflict with this chapter or Neb. Rev. Stat. §48-650.

History

• Effective 2019-04-10

Chapter 13 Certification as to Combined Tax Status of Contractors Employed on Public Contracts

Neb. Admin. Code tit. 220, ch. 13 Certification as to Combined Tax Status of Contractors Employed on Public Contracts {#sec-220-nac-13 omnilex-key=us-ne-regs-official--title-220--220 NAC 13}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §48-607 and §48-657.

002. Any contractor who has been employed on a public contract shall be furnished, without cost, a statement as to his/her standing with respect to combined tax, interest, or penalties due the Unemployment Compensation Fund. Such a statement shall be signed by the Treasurer of the Fund on behalf of the Commissioner. If there are no delinquencies, a form prescribed by the Commissioner shall be used in so certifying. If the contractor has delinquent combined tax, interest, or penalties which he/she claims are connected with a period other than that in which the work was performed on the public contract, he/she shall obtain, from the contracting public agency, a statement to the Commissioner as to the beginning and ending dates of the contract performance. Upon receipt of such request, a certificate as to the period shown shall be made on a form prescribed by the Commissioner.

History

• Effective 2012-01-16

Chapter 14 Penalty Waiver Conditions

Neb. Admin. Code tit. 220, ch. 14 Penalty Waiver Conditions {#sec-220-nac-14 omnilex-key=us-ne-regs-official--title-220--220 NAC 14}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §§48-607 and 48-656(3).

002. The department may waive penalties for delinquent combined tax/wage quarterly reports in the following types of situations:

A. NEWLY LIABLE EMPLOYERS. Waiver may be considered for a newly liable employer if the employer has not exhibited a willful disregard for unemployment insurance status requirements, and has submitted the requested delinquent reports within thirty days of the Department’s notification of potential liability for combined taxes.

B. PAYMENTS TO ANOTHER STATE OR FEDERAL AGENCY. Waiver may be considered where the report was mailed within the period required by law but was addressed or delivered to the wrong state or federal agency.

C. DEATH OR SERIOUS ILLNESS. Waiver may be considered where the delay was caused by the death, serious illness, or incapacitation of the employer or any member of his/her immediate family, or by the death or serious illness of the person in the employer's organization responsible for the preparation and filing of the reports.

D. DESTROYED OR LOST RECORDS. Waiver may be considered when the delay was caused by destruction of the employer's place of business or business records by fire or other casualty.

E. PAST COMPLIANCE. Waiver may be considered in those instances where the employer has (i) met all reporting requirements on a timely basis for the eight previous quarters, and (ii) timely responded to all required reports upon a written notice to last known address of delinquency.

003. An employer may apply for waiver by providing specific reasons as to why the reporting infractions occurred. Such application must be provided to the Commissioner of Labor or his/her designee in writing. The burden shall be upon the employer to establish the facts or circumstances involved to the satisfaction of the Commissioner.

004. If an application for waiver is denied, the employer shall be given notice and opportunity for appeal. Requests for appeal and hearings on denials of applications for waiver shall be governed by 223 NAC 1.

History

• Effective 2008-05-28

Chapter 16 Limited Liability Companies and Limited Liability Partnerships

Neb. Admin. Code tit. 220, ch. 16 Limited Liability Companies and Limited Liability Partnerships {#sec-220-nac-16 omnilex-key=us-ne-regs-official--title-220--220 NAC 16}

001. This chapter is adopted pursuant to Neb. Rev. Stat. §48-607 and is intended to distinguish between wages paid and distributions of profits made to a member of a limited liability company or a partner of a limited liability partnership.

002. For purposes of this chapter:

Limited liability company shall mean a domestic or foreign limited liability company as defined in the Limited Liability Company Act (Neb. Rev. Stat. §21-2601, et seq.); and

Limited liability partnership shall mean a domestic or foreign limited liability partnership as defined in the Uniform Partnership Act, Limited Liability Company Act (Neb. Rev. Stat. §67-301, et seq.); and

Wages shall mean wages as defined in the Employment Security Act (Neb. Rev. Stat. §48-601, et seq.).

003. Distribution of a share of the profits of a limited liability company or limited liability partnership to a member of the limited liability company or partner of a limited liability partnership shall be presumed to not be subject to the payment of combined tax except to the extent that the same are paid as wages.

004. Distribution of a share of the profits to a member of a limited liability company or partner in a limited liability partnership, shall be presumed to be paid as wages if:

A. The distribution exceeds the proportion of the total paid in capital investment of the limited liability company or limited liability partnership owned by the person receiving the distribution; or

B. The distribution is made based upon the number of hours, days, weeks or months the individual performed services for the limited liability company or limited liability partnership; or

C. The distribution is made primarily based upon services performed for the limited liability company or limited liability partnership.

History

• Effective 2008-05-28