How to Do Payroll in Nevada in 9 Steps

Nevada does not levy a state income tax, and its reporting obligations are straightforward.

Disability Insurance Provided by the State is not required, although it does levy state unemployment taxes (SUTA) on a quarterly basis.

You could opt to use payroll software or a service that takes care of all the regulations and paperwork for you.

The fundamental processes for handling payroll are outlined here, along with advice on how to conduct payroll in Nevada.

Because there is no state income tax, filing is simple; all you have to worry about is SUTA withholdings.

Step 1:

Register your company as an employer. Your EIN and an account in the Electronic Federal Tax Payment System (EFTPS) Electronic Federal Transfer System are required at the federal level.

Step 2:

Register with the Nevada Department of Motor Vehicles. To open a Nevada UI tax account, use your federal EIN. Go to the Nevada UI website’s Employer Self Service area and choose “I wish to create a new online user account.”

Fill out the ACH Debit Authorization Form and send it to the state for approval if you wish to pay via ACH Debit.

Step 3:

Create a payroll system. There are no specific salary difficulties in Nevada, so this should be simple.

Step 4:

Collect employee payroll paperwork. It’s simplest if you do it throughout the onboarding process. W-4, I-9, and Direct Deposit information are some of the most typical payroll forms required by small companies. Although you will want to record your new employees, Nevada does not have any extra paperwork.

step 5:

Collect, evaluate, and approve timesheets. If you have workers that work or reside out of state, keep note of where they do the majority of their job since this might affect whether you are responsible for state unemployment insurance. If you want to do it manually, download one of our free timesheet templates.

Step 6:

Work out your payroll and pay your staff. Include garnishments in your payroll calculations and make sure your pay stub is itemized.

Step 7:

Submit payroll tax returns to the federal and state agencies. For federal taxes, including unemployment, follow the IRS’s guidelines. Even if you don’t have to pay anything, Nevada mandates you to submit the NUCS 4072 quarterly. If you don’t get a preprinted form from the state, contact the Department of Employment, Training, and Rehabilitation to request one.

If any of these days occur on a Saturday, Sunday, or legal holiday, you may file the next business day.

If your debt is less than $10,000, you may pay with a check. If you go over that limit, you’ll have to submit and pay your taxes online. If you want to pay by check, please send the form and payment to:

Employment Security Division, Contributions Section, Department of Employment, Training, and Rehabilitation 500 East Third Street Carson City, Nevada 89713-0030

Please arrive on time! For each month or half month, you are late, Nevada imposes a $5 late fee plus 1% interest.

Step 8:

Keep track of your payroll data by documenting and archiving them. Nevada requires you to keep records for at least two years for all workers, even those who have been fired. More information about keeping payroll records may be found in this article.

Step 9:

Finish your payroll tax reports for the year. W-2 (for workers) and 1099 (for non-employees) are the government forms (for contractors.) These must be obtained by employees and contractors by January 31 of the following year.

Payroll Laws, Taxes, and Regulations in Nevada

Employers must pay state unemployment insurance taxes (SUTA) and workers’ compensation insurance, but not state income taxes or disability insurance, according to Nevada law. The procedures are similar to federal legislation, and filing is done on a quarterly basis.

Unemployment Insurance Taxes in Nevada (SUTA)

If you pay more than $225 in wages in a calendar quarter, you are subject to state UI tax withholdings, with certain exceptions. For new employers, the tax rate is 2.95 percent of taxable earnings. The state then calculates your rate and provides it to you on your preprinted Form NUCS 4072. For the year 2021, Nevada offers 18 different tax rates ranging from 0.25 percent to 5.4 percent on employee salaries up to $33,400. If you pay less than 5.4 percent, you’ll additionally have to pay a 0.05 percent Career Enhancement Program tax.

The majority of employers are required to pay SUTA. If they paid over $20,000 in salary or employed 10 or more employees, even agricultural firms may be held guilty. Nevada has the following exemptions:

Domestic servants
Family
Employees on a foreign vessel or aircraft
Patients who work in hospitals
Students enrolled in academic programs
Spouses labor in schools.
Several charitable organizations or NGOs
Newspaper delivery
Drivers of agents and commission-drivers
Some commission-based salesmen

What if I told you that

You’ve come to the right place! Because Nevada has no state income taxes, you won’t have to worry about state income tax withholdings. However, you must still calculate, submit, and pay federal income tax withholdings.

Insurance for Workers’ Compensation

Nevada requires employers to have Insurance for Workers’ Compensation for all workers, even aliens, and minors, but excludes casual or theater performers, Workers at the home in the home, volunteers, clergy, real estate brokers, workers doing direct sales via phone, and commission workers like salespeople. You can get your own policy, but it should include at least the following:

Medical attention
Compensation for lost time (temporary total/temporary partial disability)
Partially Permanent Disability
Total and Permanent Disability
Rehabilitation of the Workforce
Benefits to dependents in the case of death
Other benefits or expenditures linked to the claim (e.g., mileage)

Nevada’s Minimum Wage Laws

Employees must now be paid at least $9 per hour, with an additional $8 per hour if healthcare benefits are provided. The state, on the other hand, is raising minimum salaries through 2024.

Minimum wage rules do not apply to the following employees:

Minimum wage, tip credit, and other minimum wage laws have been waived in explicit and unambiguous language for workers working under a legitimate collective bargaining agreement.
Employees under the age of 18
Workers who worked for a nonprofit organization after school or during the summer
Trainees who are paid for a term of up to 90 days.

Overtime Regulations in Nevada

Unless the agreed-upon schedule is four days at 10 hours a day, Nevada establishes a standard overtime rate of time-and-a-half of the employee’s pay rate when the employee works more than 40 hours in a workweek or more than eight hours in a day. There are a few exceptions:

Employees of enterprises with a gross sales volume of less than $250,000 per year
Employees in retail or service industries whose regular pay is already more than 1.5 times the minimum wage and commissions account for more than half of their total income.
Employees that are genuine executives, administrators, or professionals
Employees who are protected by collective bargaining agreements that include overtime provisions in other ways
Motor carrier drivers, drivers’ aids, loaders, and mechanics covered under the Motor Carrier Act of 1935
Workers on the railroad
Employees of the airline
Local delivery drivers and their assistants who are compensated by trip or other means (like mileage)
Drivers of taxis and limousines
Employees in the agricultural industry
Auto salesmen and mechanics are employed at automobile dealerships.
Workers at the home

Out-of-State Employees Must Be Reported

Out-of-state workers are nonetheless counted for Nevada tax purposes in certain situations. It’s the same as in other states:

Wages must be reported to Nevada if a worker does all or most of his job there.
If a person works in Nevada for a portion of the time but does the majority of his job elsewhere, all payments should be recorded in the state where his “base of operations” is located. A base of operations is where he works, whether it’s at an office or at home.
Wages should be reported to Nevada if the employee lacks a “base of operations,” or a distinct place from which he receives direction and control.

Employees Can Be Paid in a Variety of Ways

Although Nevada does not mandate you to pay workers in a certain way, you may not discriminate against individuals without a bank account. As a result, you should provide the option of paying by check or credit card.

Pay Stub Regulations

Pay stubs that itemize an employee’s paycheck, including gross pay, deductions, net cash wages/salary, date of payment, and hours worked, are required. Failure to comply might result in a $5,000 administrative fee as well as criminal proceedings.

Download one of our free payroll stub templates if you’re conducting your own payroll and need a simple method to print a pay stub.

Minimum Pay Period

Employees must be paid at least twice a month in Nevada. You may agree on an alternative timetable, but that agreement cannot be made a condition of employment. Wages earned prior to the beginning of the month must be paid by the 15th at 8 a.m. Wages earned from the first to the 15th of the month must be paid on the final day of the month at 8 a.m.

Those in executive, administrative, or professional positions, as well as outside salespeople and supervisors as described in 29 U.S.C. 152, are exempt.

Non-wage benefits, such as housing and food, may be included in pay. Each week, lodging cannot cost more than five times the minimum hourly salary. Breakfasts and lunches cannot cost more than 25% of the minimum wage, while dinners cannot cost more than 50%.

Payroll Deduction Regulations

Your workers will almost certainly never be paid exactly what they earn. Because most individuals have to pay taxes, you’ll have to deduct money to offset what they owe. There are a variety of different reasons why you may need to deduct money from your workers’ paychecks. Some costs are permitted, while others may result in legal action.

You may take the following deductions:

Legal judgments, such as unpaid taxes and child support, may result in garnishments.
FUTA, SUTA, and tax
Health insurance and other perks are paid for in part by the employee.
Compensation for occupational injuries caused by the employee

If the employee’s gross weekly pay was $770 or less when the most recent writ of garnishment was issued, legal garnishments cannot exceed 82 percent of take-home pay for any workweek, or 75 percent of take-home pay for any workweek if the gross weekly pay exceeded $770. The full sum may be excluded if the employee’s weekly take-home compensation is less than 50 times the federal minimum hourly rate.

You also can’t charge employees for mandatory uniforms or accessories if the style, color, or material are unique.

Laws Regarding Final Paychecks

If you fire an employee, you must give them termination money right away. If an employee leaves, final earnings must be paid no later than their regular paycheck or seven days after the employee departs, whichever comes first.

Paid Vacation (PTO)

You have the option of front-loading leave at the start of the year or letting it accumulate in Nevada. Unless your leave exceeds 40 hours in a benefit year, you must let it roll over to the following year. For PTO exceeding 40 hours, you may implement a use-or-lose policy.

If you want to front-load leave, make sure you have a clear, documented policy in place for payment if the employee leaves. If an employee leaves in Nevada, you are not required to pay front-loaded leave. Unused paid leave cannot be deducted from a person’s final salary if they are fired.

Human Resources Laws in Nevada That Affect Payroll

When it comes to payroll legislation, Nevada is rather simple. Many of them are in line with federal regulations, but you must be aware of them. The state Department of Labor (DOL) has changed the minimum wage and PTO rules in recent years, and new restrictions may follow.

Reporting of New Hires in Nevada

New recruits must be reported within 20 days of their start date. This includes rehires after a period of more than 60 days away from your company. The state does have a new hiring form, but it isn’t compulsory. You must, however, include:

Full Name of Employee
Social Security Number (SSN) of the employee
Address of the Employee (City, State, and ZIP code)
FEIN (Federal Employer Identification Number) of the employer
Name of the Employer
Address of the Employer (City, State, and ZIP code)
The Start Date of the Employee
Year of Birth (optional)
State of Employment (optional)

You may provide the information to the Employment Security Division online, by sending the W-4 form, or by faxing a new hire form or the information given above.

Requirements for Paid Vacation

Employees are usually paid for the time they work, but not for the time they don’t. There are, however, further details about breaks and PTO that you may need to follow.

Breaks for Lunch and Other Activities

Every eight hours, employees must take a 30-minute lunch break, plus 10 minutes for every four hours worked or a large portion thereof. These guidelines do not apply to you.

If an employee works fewer than 3.5 hours a day, they are considered part-time.
If the employee is the only one on the premises,
To those who are covered by a collective bargaining agreement

Nursing women must be provided with enough rest time and a private location in which to express their breast milk.

Paid Vacation

Employers with 50 or more workers are subject to Nevada leave requirements. For each hour of labor accomplished, you must provide at least 0.01923 hours of paid leave. In Nevada, you must provide paid leave at the employee’s current pay rate at the time they take leave. If the employee is paid on a commission, salary, or piece-rate basis rather than hourly, divide total wages received in the 90 days before the leave by the number of hours worked in that time to arrive at leave pay. Bonuses received within that time period are not included.

You are not compelled to pay an employee for unpaid leave unless you rehire them within 90 days of termination and the employee did not depart of his or her own will.

Employees who are victims of domestic abuse or whose family members have been victims of domestic violence are entitled to 160 hours of paid leave under Nevada law (and the employee was not the perpetrator). This may be compensated or unpaid, and it lasts for up to a year after the assault. For further information, see NRS 608.0198.

Sick leave, family leave, and maternity leave

This, like PTO, applies to companies with over 50 workers. When it comes to this kind of leave, Nevada closely follows federal regulations. The employee must have worked at least 1,250 hours in the previous 12 months to be eligible for family medical leave, which may last up to 12 weeks.

The birth of the employee’s kid and the newborn’s care
Adoption or foster care placement of the kid with the employee
Care for the employee’s spouse, parent, or a kid who is suffering from a terrible illness.
An employee has a major health problem.

Accrued leave may also be utilized, and leave can be taken on an as-needed basis.

Time off for voters

Employers must provide enough time off for workers to vote. You cannot withhold compensation for time spent voting, but you may specify how much time the employee spends voting.

Disability Insurance Provided by the State

Nevada does not require you to pay disability insurance, nor does it have a Disability Insurance Provided by the State program. However, such policies protect both you and your employees plus make you a more attractive employer to applicants.

Earnings from Tips

When submitting SUTA, tips are documented individually. While they are included in the employee’s remuneration, they are not included in the weekly benefit cap. You may not use all or part of any tips or gratuities as a credit toward the payment of the minimum wage, according to NRS 608.160.

Child Labor

Working minors are governed under NRS 609.240. Children under the age of 16 are not permitted to work more than eight hours per day or 48 hours per week. A youngster is deemed to be working if they are present at their place of employment during working hours.

Children under the age of 14 are not permitted to work unless a district judge or his designee gives them formal authorization. The only exceptions are farmwork, housekeeping, and acting in a film picture. Only child actors are excluded from working during school hours unless the school system or a juvenile court judgment states otherwise.

Payroll Forms in Nevada

Nevada has a small number of payroll forms, which makes paperwork easy. Of course, you must also maintain track of government paperwork.

W-2 form in Nevada

There are no state income taxes and no state W-2 forms. That was a breeze!

Other Withholding Forms in Nevada

Employer’s Quarterly Contribution and Wage Report, NUCS 4072: For paper-based UI tax filing. Each quarter, the state should send you a pre-filled copy. When we attempted to access the form on the Nevada Unemployment Insurance website at the time of writing this article, we received an error notice. If you need to download it again, come back here.
ACH Debit Authorization: This is used to pay UI taxes through an ACH debit.
New Hire Report from the State of Nevada: It’s helpful, but it’s not needed.

Forms for Federal Payroll

W-4 Form: Used by businesses to figure out how much tax to withhold from employees’ paychecks.
W-2 Form: This form is used to record total yearly earnings (one per employee)
W-3 Form: This form is used to record all workers’ total earnings and taxes.
Form 940: Form 940 is used to submit and compute unpaid unemployment taxes to the Internal Revenue Service (IRS).
Form 941: To submit quarterly income and FICA taxes deducted from paychecks, use Form 941.
Form 944: To report yearly income and FICA taxes deducted from paychecks, use Form 944.
1099 Forms: Used to report non-employee compensation and assist the IRS in collecting taxes on contract labor.

Conclusion

Nevada has simple payroll regulations, but you should read them carefully since there are fines and penalties if you don’t follow them, and the state has just made some modifications. Furthermore, federal payroll and human resource rules must be observed.

Using payroll software like Gusto might help you avoid incurring penalties or fines by letting someone else handle the paperwork. It pays workers, calculates and submits payroll taxes, manages benefits, and sells insurance in Nevada, among other things.