Payroll tax in Nevada: What employers need to know [2024]

One of the responsibilities of running a business—whether big or small—is paying taxes. Business owners in Nevada not only have to pay their own taxes, but they also have to administer payroll taxes for their employees. In addition to federal income tax and Federal Insurance Contributions Act (FICA) taxes, like Medicare and Social Security, employers are responsible for state and local payroll taxes. These taxes vary across the country, which is why it’s important to know your employer tax obligations everywhere your employees live.

Nevada’s tax structure differs from many other states because it doesn’t have state or local income taxes. Employers and employees are subject to the unemployment insurance tax and the Career Enhancement Program tax.

Let’s take an in-depth look at Nevada’s payroll taxes, their rates, who’s responsible for paying them, and when payments are due.

The 2 Nevada payroll taxes

Nevada is one of the few US states that doesn’t have a state income tax. This means you don’t have to worry about state income tax withholding from your employees’ paychecks. However, employers are still responsible for federal taxes, Nevada’s unemployment insurance tax, and the Career Enhancement Program (CEP). 

New hires and rehires must be reported to the Nevada Department of Employment, Training, and Rehabilitation (DETR) within 20 days of their employment.

Unemployment insurance tax

Nevada’s unemployment insurance (UI or SUI) is part of the US Department of Labor’s unemployment benefits program established by the Federal Unemployment Tax Act (FUTA). Its framework is defined by Nevada’s Unemployment Compensation Law. Unemployment insurance provides temporary financial relief for people who find themselves out of work through no fault of their own, like layoffs. 

The DETR administers UI in the state. Rates and taxable wages are updated annually, and employers receive a Notice of Employer's Contribution Rate Statement in December. All registered employers must file quarterly, even if they didn’t pay any employee wages. The taxable wage base for 2024 $40,600.

New employers pay a rate of 2.95% until the DETR revises their rate.

Nevada employers subject to the Nevada Unemployment Compensation Law are also responsible for paying the Modified Business Tax (MBT). While this tax isn’t a payroll tax, it’s based on employees’ gross pay and employer-paid healthcare benefits. The Nevada Department of Taxation administers the MBT. 

Career Enhancement Program tax

The CEP is Nevada’s employer-funded training and re-employment program. It covers the cost of training and other employment-related expenses to help participants enter or re-enter the workforce. All Nevada employers pay this tax except those paying the 5.4% UI tax rate.

Making sense of payroll taxes can be challenging, even in a state like Nevada, with its relatively simple payroll tax system. But Rippling’s payroll compliance software can lighten your load. Rippling automatically calculates your taxes and files your forms and payments on your behalf, all while tracking federal, state, and local tax regulations to ensure compliance. And if you need assistance with registering and managing your state tax accounts, Rippling’s PEO can take care of it for you, automating even more of the payroll tax process.

Payroll tax due dates in Nevada

In Nevada, unemployment tax reports and payments are due quarterly by the last day of the month following each quarter. Payment is due the following business day if the due date falls on a holiday or weekend. 

There are several penalties for late tax filing and late payments: Late filing incurs a fine of $5, plus an interest charge of 0.1% of taxable wages after ten days for each month (or part) that the report is late. Late payments are also subject to 1% interest of the UI taxes due for each month (or part) the payment is delinquent. Interest isn’t charged on CEP amounts.

How to submit payroll taxes in Nevada 

We’ve looked at Nevada’s state payroll taxes and when they’re due. Now, it’s time to submit your reports and payments.

Nevada businesses must file and pay unemployment insurance taxes quarterly, even if no wages were paid. You must file your quarterly contribution and wage reports online. Employers who can’t file online may request a waiver by completing an E-File Waiver Request Form and faxing or mailing it to the Employment Security Division. 

Create an Employer Self Service Website (ESS) account

Before filing unemployment insurance online, you'll have to set up an account on ESS, Nevada’s secure web portal. To register, you’ll need to provide a US Federal Tax ID (Employer Identification Number) issued by the IRS. The complete list of information you need to submit is available on the ESS portal.

Once registered with ESS, employers (or their authorized agent or payroll service) use the portal to calculate the amount of tax due and print a payment coupon. By law, you must make payments of $10,000 or more electronically. For amounts under $10,000, employers can mail a check with the payment coupon (details below). 

Electronic Payment System Options 

With Nevada’s Electronic Payment System (EPS), employers can transfer funds electronically using the Automated Clearing House (ACH) network. You can make payments using either ACH debit or ACH credit. You’ll have to sign up to use either ACH option. 

File by mail

As mentioned above, if your UI tax payment is under $10,000, you can mail a check, made payable to the Nevada Employment Security Division, to:

Department of Employment, Training and Rehabilitation
Employment Security Division, Contributions Section
500 East Third Street
Carson City, Nevada 89713-0030

Rippling’s full-service payroll software

Are you looking for a less complicated way to settle your payroll taxes? Rippling’s payroll software is so powerful it practically runs itself. With Rippling, you can automate your tax compliance tasks and make sure your federal, state, and local taxes are filed and paid on time to the right agencies. 

FAQs about Nevada payroll taxes

Are there local tax laws in Nevada?

No. There are no state or local personal income taxes in Nevada. 

Can your tax returns be audited in Nevada?

Yes. The Nevada Department of Employment, Training, and Rehabilitation conducts audits to verify that tax submissions are accurate and workers are classified correctly. 

Are nonprofit organizations subject to payroll taxes in Nevada?

Yes. Unless they fall under state exemptions, nonprofits must pay UI taxes quarterly. They do have the option of electing to be self-insured under the reimbursement option. This means the employer files quarterly reports but does not pay UI or CEP taxes. Instead, they reimburse the State of Nevada quarterly for all unemployment benefits charged to their account. Employers must use this optional method for at least two calendar years before switching back to regular quarterly payments.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.