Neb. Admin. Code § 316-21-007 — Employer's Returns and Payment of Withheld Income Taxes

007.01 Every employer required to deduct and withhold Nebraska income tax from an employee's wages must file a withholding return and pay to the Department the amount required to be deducted and withheld, or the amount actually deducted and withheld, whichever is larger. The return must be filed using the Nebraska Withholding Return, Form 941N. 007.01A A Form 941N is required for each filing period or portion of a filing period. A return must be filed for every filing period, even if there has been no income tax withholding. 007.01B The filing period is the reporting frequency as assigned by the Department. For most employers, it will be quarterly, but employers who have liabilities of $500 or less for a calendar year, and employers that are allowed to file their federal returns annually may be assigned an annual filing frequency. 007.01C The Form 941N must be received by the Department, or postmarked, on or before the last day of the month following the close of each filing period. 007.01D Employers who file a Form 941N must file the form and pay the Department in the manner and method that the Tax Commissioner prescribes for the efficient and proper administration of the Nebraska Revenue Act, including filing and paying electronically. Taxpayers may access the electronic filing (e-file) program and the electronic payment options from the Department's website. 007.02 When the total amount to be deducted and withheld by any employer for either the first or second month in a calendar quarter exceeds $500, the employer must make monthly deposits by filing a Nebraska Monthly Withholding Deposit, Form 501N, with the Department. The Form 501N must be filed on or before the 15th day of the second and third month of each calendar quarter. The amounts paid are allowed as a credit against any liability shown on the employer's next quarterly Form 941N. 007.02A Form 501N is not required when monthly payments are made electronically. 007.03 On or before February 1 of each year, each employer must file with the Department a copy of each statement furnished to each of its employees showing the total Nebraska income taxes withheld from wages during the prior calendar year. This statement is the state copy of Federal Form W-2. Any employer who furnishes more than 50 statements for any year must electronically file (e-file) the required copies in the manner approved by the Department. Taxpayers may access the e-file program from the Department's website. 007.04 The employer must also file a Nebraska Reconciliation of Income Tax Withheld, Form W-3N, on or before February 1 of each year in accordance with Reg-21-013. 007.05 The last Form 941N for any employer who discontinues business or permanently ceases to pay wages must be clearly marked “Final Return.” This Form 941N and the full payment for amounts deducted and withheld must be sent to the Department. The employer must also file a completed Form W-3N, and the state copies of Federal Form W-2, for the part of the calendar year that the employer operated its business or paid wages. 007.06 An employer who ceases to pay wages temporarily, including an employer engaged in seasonal activities, must continue to file all applicable Form 941Ns. 007.07 Every employer which is considered to be a successor of another employer under the I.R.C., is a successor for Nebraska income tax withholding purposes and must file returns and make payments for Nebraska in a similar manner. ( Neb. Rev. Stat. §§ 77-1784 and 77-2756. October 26, 2014.)