316 Neb. Admin. Code, ch. 21, § 002

Current through September 17, 2024

Section 316-21-002 - DEFINITIONS FOR INCOME TAX WITHHOLDING PURPOSES

002.01 For the purposes of Reg-21-001 through Reg-21-019:

002.01A The definitions in Reg-21-002.02 through Reg-21-002.11 apply; and

002.01B The provisions of the I.R.C. and its applicable regulations regarding deductions and withholding of federal income tax by employers apply, (including the meaning of federal terms like payroll period and withholding allowances) except as otherwise specifically provided in these regulations or where the federal rules and definitions are clearly inconsistent with and inapplicable to the provisions of the Nebraska Revenue Act.

002.02 Construction services means services performed by a contractor.

002.03 Employee

Contractor means any person engaged in the business of constructing, altering, repairing, dismantling, or demolishing buildings, roads, bridges, viaducts, sewers, water and gas mains, streets, disposal plants, water filters, tanks and towers, airports, dams, levees and canals, water wells, pipelines, transmission and power lines, and every other type of structure, project, development, or improvement within the definition of real and personal property, including constructing, repairing, or altering property to be held either for sale or rental. Contractor also includes any subcontractor engaged in the business of these activities and any person who is providing or arranging for labor for these activities, either as an employee or as an independent contractor, for any contractor or person.

002.04 Contractor Database means the online database maintained by the Department of Labor of contractors registered under the Contractor Registration Act that provide construction services in the state.

002.05 Department means the Nebraska Department of Revenue.

002.06 Native American Reservation Indian

Employee means any person defined as an employee under the I.R.C. and any pension recipient, contractor, corporate payee, partnership payee, or nonresident individual from whom Nebraska income tax withholding is required.

002.07 Reservation

Employer means any person or organization qualifying as an employer for federal income tax withholding purposes and maintaining an office or transacting business in Nebraska.

002.07A The fact that an employer may not be subject to Nebraska income tax is not relevant to the obligation to withhold for income tax purposes.

002.07B Employer includes the state, any political subdivision of the state, the U.S., and any agency or instrumentality of the U.S.

002.07C Employer includes employee leasing companies, professional employer organizations, common paymasters, or any other organizations that provide payroll services for employees that are supervised by another organization.

002.07D For the purposes of these regulations, including filing returns and imposing penalties, employer includes any payor required to withhold under Reg-21-001.04, and any contractor required to withhold under Reg-21-001.05.

002.08 Wages

Native American Indian means any enrolled member of a recognized Native American Indian Tribe.

002.09 Payroll record means the payroll check stub, a Federal Form W-2, or any other payroll document the employer furnishes an employee.

002.10 Personal services means services performed by an individual who is not an employee under the I.R.C. for the payor, including, but not limited to: consultants; entertainers; performers; practicing professionals, athletes; public speakers; and service on a corporate or other entity board of directors.

002.11 Wages means any payments that are subject to federal income tax withholding including gambling winnings. For the purposes of these regulations, including filing returns and imposing penalties, the term wages also includes:

002.11A Amounts paid for personal services performed or to be performed in Nebraska from which income tax withholding is required;

002.11B Amounts paid for pensions and annuities when the recipient has requested or when the payor is required to withhold federal income tax from these payments;

002.11C Amounts paid by a contractor for construction services performed in Nebraska to;

002.11C(1) Another contractor, or

002.11C(2) Any person who is not an employee subject to withholding under Nebraska law.

002.11D Wages include severance payments made upon termination or retirement of an employee pursuant to an employment contract or employer policy if determining the amount of the payments does not require future administration by the employer, and if the payments that were made to the employee prior to termination or retirement were considered wages.

002.11E Wages do not include any employer contributions to retirement plans, such as I.R.C § 401(k) plans, made on behalf of persons subject to federal income tax withholding if the specific contributions are not subject to federal withholding.

316 Neb. Admin. Code, ch. 21, § 002

Neb. Rev. Stat. §§ 48-2103 and 48-2117, and 77-2753. October 26, 2014.