Nev. Admin. Code § 363B.161 — 363B.161

NAC 363B.161    Application by employer for designation as payroll provider;
requirements for designation; revocation or cancellation of designation;
commerce tax credit. ( NRS 360.090 , 363B.060 , 363B.110 )
1.  An employer may apply to the Department
to be designated as a payroll provider by submitting to the Department such
forms, application materials and supporting documents as the Department may
require.
2.  The Department shall designate an
employer as a payroll provider if the employer demonstrates to the satisfaction
of the Department that:
(a) The employer is a member of an affiliated group
which:
(1) Provides payroll services for one or more
members of the affiliated group;
(2) Pays wages to employees who provide
services on behalf of one or more members of the affiliated group; and
(3) Reports and pays the tax imposed by NRS 363B.110 on wages paid to
employees who provide services on behalf of one or more members of the
affiliated group; and
(b) Each member of the affiliated group for which a
tax credit will be claimed pursuant to subsection 4 would have a liability for
the tax imposed by NRS 363B.110
if the persons who provide services for that member were treated as employees
of that member rather than as employees of the employer.
3.  The Department may revoke or cancel the
designation of an employer as a payroll provider if the employer no longer
qualifies for that designation pursuant to subsection 2. The revocation or
cancellation of the designation of an employer as a payroll provider does not
preclude the Department from designating another employer as a payroll provider
for the affiliated group if the other employer qualifies as a payroll provider
pursuant to this section.
4.  In reporting and computing the tax
imposed by NRS 363B.110 , a
payroll provider may subtract from the amount calculated pursuant to subsection
1 of NRS 363B.110 a credit in
an amount equal to 50 percent of the sum of the commerce tax paid by the
payroll provider and the members of the affiliated group that would have been
liable for the tax imposed by NRS 363B.110
if the persons who provide services for that member were treated as employees
of that member rather than as employees of the payroll provider.
5.  As used in this section:
(a) “Affiliated group” means a group of two or more
business entities, each of which is controlled by one or more common owners or
by one or more members of the group.
(b) “Commerce tax” means the tax required to be
paid pursuant to chapter 363C of NRS.
(c) “Controlled by” means the direct or indirect
ownership, control or possession of 50 percent or more of the ownership
interest in a business entity.
(d) “Payroll provider” means an employer who has
been designated by the Department as a payroll provider pursuant to subsection
2.
(Added to NAC by Tax Comm’n by R123-15, eff. 6-28-2016)