Nebraska Payroll Taxes: Employer vs. Employee

A plain-English split between employee withholding and employer payroll costs

Two sides of payroll

Payroll taxes in Nebraska fall into two groups. Some are withheld from the employee's paycheck and sent to the government by the employer.

Others are paid by the employer on top of wages and never appear as a deduction on the employee's stub. Knowing the difference helps employees read pay stubs and helps small business owners budget the real cost of a hire.

Employee-paid taxes

Social Security: 6.2% of wages up to the annual wage base ($184,500 for 2027).
Medicare: 1.45% of all wages, plus 0.9% Additional Medicare over $200,000.
Federal income tax: withheld using the federal W-4.
Nebraska income tax: withheld using Form W-4N and Circular EN.

There is no local wage tax in Nebraska and no state disability or family-leave payroll deduction.

Employer-paid taxes

Employer FICA match: another 6.2% Social Security and 1.45% Medicare.
FUTA: 6.0% on the first $7,000 of each worker's wages, usually reduced to 0.6% with the state credit.
Nebraska unemployment insurance (SUTA): experience-rated; new employers start at a standard rate set by the Nebraska Department of Labor, on a taxable wage base of $9,000 for most employers (higher for those in the top rate category).

Nebraska also charges a small State Unemployment Insurance Tax (SUIT) component as part of the combined rate.

Side by side

Tax	Withheld from the employee	Paid by the employer
Social Security	6.2% up to $184,500	6.2% match
Medicare	1.45% of all wages	1.45% match
Additional Medicare	0.9% over $200,000	None
Federal income tax	W-4 withholding	None
Nebraska income tax	W-4N and Circular EN	None
FUTA	None	0.6% on the first $7,000 after the state credit
Nebraska unemployment	None	Experience-rated, on a $9,000 wage base for most employers

Employer cost example

For a $50,000 employee, the employer pays roughly $3,825 in FICA match, $42 in FUTA, and a few hundred dollars in Nebraska unemployment tax, depending on its rate. That puts the true payroll cost around $54,000 before benefits.

Cost on $50,000 of wages	About
Employer Social Security and Medicare match	$3,825
FUTA after the state credit	$42
Nebraska unemployment tax	A few hundred dollars; the rate varies
Wages plus these taxes, before benefits	Around $54,000

Employer filing duties

Nebraska employers register with the Department of Revenue for an income tax withholding account and with the Department of Labor for unemployment insurance. They deposit withheld state tax on a monthly or quarterly schedule and file Form 941N, plus an annual W-3N reconciliation and W-2s to employees.

Check your own deductions

Employees can see their side of payroll taxes on each check with the Nebraska paycheck calculator. For the state withholding method and W-4N allowances, see the Nebraska income tax withholding calculator.

For FICA details, read FICA on Nebraska paychecks.

Frequently asked questions

Do Nebraska employees pay unemployment tax?

No. In Nebraska, unemployment insurance tax is paid entirely by the employer.

It should never appear as a deduction on an employee's pay stub.

Is there Nebraska disability or paid leave tax?

No. Nebraska has no state disability insurance or paid family leave payroll deduction.

Nebraska's paid sick leave law, approved by voters in 2024, requires employers to provide leave but does not add a payroll tax.

When must employers deposit Nebraska withholding?

Most employers file Form 941N quarterly; larger employers deposit monthly or by electronic funds transfer. The Department of Revenue assigns the schedule at registration.

What forms go to employees?

Employers give each worker a W-2 by January 31 showing federal and Nebraska wages and withholding, and send state copies with Form W-3N.