Section 316-21-010 - INCOME TAX WITHHOLDING EXEMPTIONS010.01 Except as provided in Reg-21.010.01B, when determining the proper amount of income tax to be deducted and withheld from an employee's wages, the employer will allow the number of exemptions claimed by the employee on his or her Employee's Withholding Allowance Certificate, Federal Form W-4, for federal income tax purposes. 010.01A An employer must retain a completed copy of the Federal Form W-4 for audit purposes.010.01B If the calculation by an employer using the number of claimed exemptions results in income tax withholding from an employee that is less than 11/2% of gross wages minus qualified tax deductions, the employer must obtain satisfactory evidence from the employee that a lesser amount of withholding is justified. Satisfactory evidence includes birth certificates or Social Security information for dependents or other evidence that reasonably assures the employer that the employee is not improperly or fraudulently evading or defeating the income tax by reducing or eliminating withholding.010.02 Nebraska income tax withholding is not required if the employer properly accepts a Federal Form W-4 claiming an exemption from federal income tax withholding because the employee had no federal income tax liability the previous year and expects no federal income tax liability for the current year.010.03 Any employee who receives a state income tax credit, except the personal exemption credit, that is not based on a federal income tax credit may request the employer to apply for permission from the Tax Commissioner for an alternative method of calculating the proper amount of income tax withholding. 010.03A The application must be made in writing by the employer. The application must include: 010.03A(1) A proposed alternative method of determining the income tax withholding;010.03A(2) The identification of the specific employee for whom the method will be used; and010.03A(3) The type and expected amount of the credit. 010.03B The income tax withholding must exceed the estimated tax liability by more than $300 for the Tax Commissioner to consider an alternative method of calculation.316 Neb. Admin. Code, ch. 21, § 010
Neb. Rev. Stat. § 77-2753(2). October 26, 2014.