What Every Employer Needs to Know About Payroll in Nebraska
When it comes to payroll, there are many states that have their own set of rules and regulations. When you’re an employer in Nebraska, you need to be aware of these things and comply with them, even if they seem complicated or difficult to follow at first glance. Here’s what every employer needs to know about payroll in Nebraska in order to stay compliant, avoid fines, and stay safe from legal repercussions.
When you can use a payroll service
Every employer needs to know when they are able to use a payroll service and when they need to handle things themselves. When you have enough employees with wages that fluctuate significantly on a weekly basis, consider using a payroll service. For example, your company might have a big project starting soon and many people will be employed for only a few weeks. A payroll service could help you handle all the legalities of filing taxes for employees who didn’t work long enough for taxes to be withheld from their paychecks. If your company has more than one location, you should hire someone locally or nationally who can help you setup the appropriate tax forms across multiple states.
When you should not use a payroll service
A major benefit of a payroll service is that the employer does not have to know about payroll laws or make any calculations. This makes sense for employers that do not have much knowledge of the topic, want professional results without worrying about mistakes and don’t want to be burdened with keeping up with payroll law changes. A payroll service provider will automatically deduct taxes based on IRS guidelines and present the employee with their W-2 forms. Employees can file their personal tax forms using this form as a guide.
No one should use a payroll service if they run into tax problems or would like more control over how they manage the process.
The most important thing about using a payroll service
Another major perk of using a payroll service is the ability to hire employees through the system. All you have to do is input their info and they will be covered with basic payroll (with no setup fees) until they quit or get fired. This eliminates a lot of hassle for employers and ensures that things are done correctly from start to finish. For example, when you hire an employee through your payroll provider, you will be getting copies of all the documents needed for paychecks each week, along with tax information for year-end filings—all taken care of automatically.
Every employer needs to know about these benefits and take advantage of them by taking care of your payroll as soon as possible and enjoy the following benefits
When Should I Begin Paying my Employees?
It’s a smart idea to start withholding wages from your employees’ paychecks as soon as possible. This will give you enough time to get everything set up and minimize any errors on your part or that of your employees. All employers are required by law to report withholdings for their employees, but there are some circumstances where a waiver is granted. These waivers allow you extra time to become compliant with the law, but this extension does not permit you any leeway with the deadlines for remitting the withheld amount into the appropriate accounts. The best thing you can do is become proactive about filing all necessary paperwork and learn what options exist for completing payroll duties more easily.
Recordkeeping Requirements for an Employer in Nebraska
Employers in Nebraska have recordkeeping responsibilities for new hires, wages, and benefits. They must create records within 20 days of hiring and make the first payroll report (if applicable) no later than 24 hours after the payroll date. The reports can be filed through an employer’s account with a third-party vendor or online with the Nebraska Revenue Department. If paying by check, employers are required to make at least two copies of a check or duplicate deposit slip and send one copy with the remittance; if they use electronic funds transfer (EFT), they will need a backup bank statement showing the number of funds transferred from the company’s checking account.
What Is the Purpose of Unemployment Insurance?
Unemployment insurance was created to provide financial assistance during periods of unemployment. It is an income replacement program paid for by employers and employees, which provides financial support when workers lose their jobs through no fault of their own. The benefits are payable to eligible workers who are unemployed due to no fault of their own, able and available for work and are actively seeking employment. Benefits are calculated on a weekly basis and range from $78 to $363 per week depending on the total number of dependents the worker has.
There are a few ways that unemployment benefits can be accessed: by direct deposit into your bank account, at your local EDA office or through employer-sponsored payroll deductions. If you choose the latter two options, you will need to request your documents from the Department of Labor (DOL) before beginning this process with your employer’s payroll department.
Nebraska’s Department of Labor website has all the necessary information for filing for unemployment as well as frequently asked questions about the application process.
How Can I Avoid Mistakes When Calculating Overtime?
In Nebraska, employers are required to give employees overtime pay at 1.5 times the employee’s regular hourly wage for all hours worked over 40 hours per week. Certain exceptions apply, such as workers who are under the age of eighteen and students that work for a school or university, but by and large these two requirements always apply: your workers should get overtime pay at 1.5 times their regular hourly wage and the total number of hours they work should not exceed 40 per week.
These two requirements create a high potential for mistakes when calculating overtime pay – it is common to overlook one of them and unintentionally violate one or both of these requirements.
Are My Employees Entitled to Paid Sick Leave?
The use of sick leave is not required by state law. However, employers should be aware that federal law requires certain employers with at least 50 employees to provide a certain amount of paid sick leave per year. Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to 12 weeks of unpaid, job-protected leave per year, which may include time off for medical care or time off for the birth or adoption of a child. Some cities have passed local laws mandating paid sick leave for private sector employees such as Omaha and Lincoln. Contact your employer’s human resources department for more information about your company’s policies and applicable laws concerning this topic.