Nebraska Special Income Tax Withholding

For employers having more than 24 employees, Nebraska state mandates to withhold at least 1.5% of each employee’s taxable wages as state income tax (SIT).

How to exempt an organization from special withholding

1. To override at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   To override at the tax reporting unit (TRU) level, start the Legal Reporting Unit Calculation Cards task.

   Settings at the TRU level override those at the PSU level.

2. Open the calculation card for editing.

3. In Component Groups, click Nebraska.

4. In Calculation Components, select State Income Tax.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on Calculation Cards.

6. Search for and select Ineligible for Special Income Tax Withholding.

7. Select Yes to exempt your organization from special SIT withholding.

   Select No to apply special SIT withholding for the organization.

8. Save your work.