How to Do Payroll in Nebraska

Last reviewed: July 2026

Nebraska payroll follows the federal rulebook plus a short state layer: one withholding registration, one unemployment insurance account, and a state-specific withholding certificate. None of it is complicated once you know the order to do it in, which is what this guide walks through.

Step 1: Get Your Federal EIN

Start with an Employer Identification Number from the IRS. It's free, arrives instantly online, and every Nebraska registration that follows will ask for it. Apply at IRS.gov/EIN before touching any state paperwork.

Step 2: Register With Nebraska Agencies

Nebraska splits employer registration across two agencies. Apply for a withholding number with the Nebraska Department of Revenue using the Nebraska Tax Application, Form 20, before you withhold a dollar of state income tax. Separately, register with the Nebraska Department of Labor for your unemployment insurance account. Both send you an account number by mail, so build in a few days of lead time.

From the Payroll Desk

File Form 20 before your first payroll, not after. You can't legally withhold Nebraska income tax without a state withholding number on file.

Step 3: Collect Form W-4N and Withhold

Nebraska requires its own withholding certificate, Form W-4N, for every employee hired after January 1, 2020, alongside the federal W-4. Pair it with the state's Circular EN tables to calculate withholding for each check. Employees must submit a new W-4N by February 15 each year if they're claiming an exemption from withholding; otherwise the certificate stays on file until they change it. Our W-4 helper can walk through tricky scenarios like multiple jobs or additional withholding requests.

Step 4: Register for and Pay SUI

Unemployment insurance in Nebraska is entirely employer-funded. For 2026, new non-construction employers pay 1.25% on the first $9,000 of each employee's wages; new construction employers pay 5.40%. Once you've reported wages for at least two consecutive rating periods, your rate shifts to an experience-based category that can run anywhere from 0.00% up to 5.40%. See our Nebraska SUI Rates 2026 guide for the full breakdown.

Step 5: Set a Regular Payday

Nebraska law doesn't dictate weekly, biweekly, or monthly pay — you choose the schedule and stick to it. What the law does require is consistency: once you designate paydays, you must give employees 30 days' written notice before changing them. Final pay is stricter. Wages due to a separated employee must be paid by the next regular payday or within two weeks of separation, whichever comes first, regardless of whether they quit or were let go.

Step 6: Deposit and File on Schedule

Federal deposits follow the IRS lookback schedule, with most small employers depositing monthly and reporting quarterly on Form 941. Nebraska withholding deposits follow a frequency the Department of Revenue assigns based on your withholding volume, usually monthly or quarterly, reconciled annually. SUI contributions are reported and paid quarterly to the Department of Labor. Put both state due dates on your calendar as soon as account numbers arrive — Nebraska charges interest and penalties on late deposits just like the IRS does.

Step 7: Close Out the Year

At year-end, issue W-2s to employees and file copies with the Social Security Administration. On the state side, file your final Nebraska withholding reconciliation so the total tax withheld for the year matches what you reported on each periodic return. Keep W-4N certificates on file for as long as the employee stays on payroll, plus the standard recordkeeping period afterward.

Frequently Asked Questions

What's the first step to running payroll in Nebraska?

Get a federal EIN, then apply for a Nebraska withholding number with the Nebraska Tax Application (Form 20) through the Department of Revenue, and register separately with the Nebraska Department of Labor for unemployment insurance.

Does Nebraska use its own withholding form?

Yes. Employees complete Form W-4N, the Nebraska Withholding Allowance Certificate, in addition to the federal W-4. Employers use it together with the state's Circular EN withholding tables to calculate each paycheck.

How often must Nebraska employers pay their employees?

Nebraska sets no specific frequency, but employers must establish regular, consistent paydays and give 30 days' written notice before changing them. Once wages are earned, they're due on the designated payday.

What is Nebraska's 2026 SUI new employer rate and wage base?

For 2026, new non-construction employers pay 1.25% on the first $9,000 of each employee's wages; new construction employers pay 5.40%. Rates adjust once you build an experience rating history.

What do Nebraska employers file at year-end?

Issue federal W-2s to employees and file your final Nebraska withholding reconciliation with the Department of Revenue, matching total state income tax withheld for the year to what was reported on each return.