Nevada Salary Paycheck Calculator
Processing payroll in Nevada doesn’t have to be difficult. With the information you need to correctly calculate employees’ paychecks and your payroll taxes, processing payroll will be like a desert oasis—a welcome retreat from the desert sun. Below, you will find answers to the most frequently asked Nevada payroll questions.
Payroll taxes in Nevada
Does Nevada have a personal income tax?
Nope. Nevada is one of the few states in the nation without a state personal, business, or corporate income tax.
Even though there isn’t a personal income tax, are there other taxes that I need to know about in Nevada?
Yes. Although there isn’t a personal income tax, Nevada has a Modified Business Tax (MBT), which is paid by most businesses and it’s based upon your payroll amounts.
The MBT is a quarterly tax paid by the employer, not by your employees. Nevada taxes general businesses at a different rate than financial institutions and mining companies. For 2022, rates range from 1.378% to 1.853%.
Are there any credits associated with the Modified Business Tax?
Yes! If you earn $4 million or more per fiscal year, you are subject to the Commerce Tax. And you may take a credit of up to 50 percent of the Commerce Tax you paid the prior year to offset the MBT you owe.
How is the Modified Business Tax calculated?
If you are a general business, taxable wages over $50,000 in a calendar quarter are taxed at 1.378% for 2022. Use Form MBT-GB to calculate and pay this tax.
Nevada has carved out different rates for financial institutions and mining businesses. These companies pay a rate of 1.853% of taxable wages. To calculate your taxes in these industries, use Form MBT-FI for financial institutions and Form MBT-MI for mining businesses.
What is Nevada’s unemployment tax rate?
Employers pay Nevada state unemployment tax on the first $36,600 of an employee’s wages in 2022. Base rates range from 0.25% to 5.4% depending on your claims history.
New employers pay a standard contribution rate of 2.95% for 14 to 17 quarters, depending on when you start paying unemployment taxes. The Department of Employment, Training, and Rehabilitation (DETR) will send you a Notice of Employer’s Contribution Rate in December. That notice will let you know your rate for the coming year.
You’ll file and report your unemployment taxes each quarter with the Employment Security Division of DETR. Even if you paid no wages, you’ll still need to let Nevada know by filing a quarterly report.
If the tax you owe is more than $10,000 or more in a quarter, then you have to pay through the Electronic Payment System. Otherwise, you can file online or on paper.
What is the salary threshold in Nevada?
Because the state of Nevada doesn’t have its own salary threshold, it adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
When is Workers’ Compensation insurance required in Nevada?
Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
Are there other Nevada paycheck rules or laws I should know?
Yes. Keep the following Nevada paycheck rules in mind.
New hires: Report new or rehired employees to the Department of Employment, Training and Rehabilitation within 20 days of hire.
Pay dates: Pay your employees at least two times a month.
Final paychecks: Pay your employees immediately when you fire or lay them off. When an employee quits, give them their final paycheck within 7 days or by the next regular payday, whichever is earlier.
Pay stubs: You must provide a pay stub to every employee, which includes an itemized list of deductions from total wages.
Paid leave: Employers in Nevada with 50+ employees must provide paid leave. The rate is at least 0.01923 hours of paid leave for each hour of work.
Domestic violence leave: When employees have worked at least 90 days for you, they are entitled to job-protected leave to handle domestic violence matters. Employees or their family members who have been subjects of domestic violence receive 160 hours in a 12-month period of unpaid leave for any of the following reasons:
- To establish a safety plan
- To attend court proceedings
- To get counseling or assistance
- To seek diagnosis, care, or medical treatment
Federal payroll taxes for Nevada employers
How does FICA taxes work?
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
FICA Tax | |
| Social Security tax | 6.2% on the first $147,000 of each employee’s wage in 2022. |
| Medicare tax | 1.45% on all of an employee’s wages each year |
Do I need to withhold federal income tax from my employees’ pay?
Yes, unless an employee is exempt from federal income tax. You’ll find out whether they are exempt when they complete Form W-4. Employees should complete Form W-4 by their first day of employment. The information on this form will determine how much tax you’ll withhold. Tax filing status and the number of dependents affect how much is withheld. Payroll software can easily make the calculations for you.
Are there other federal payroll taxes I need to pay?
Yes. You’ll need to pay federal unemployment tax and some of your employees may need to pay the Additional Medicare tax.
Federal unemployment tax
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but many employers only have to pay 0.6% each year.
Additional Medicare tax
Some of your employees may need to pay the Additional Medicare tax. If you have any employees earning more than $200,000 per year, you’ll need to withhold 0.9% on the excess.
How do I pay these federal taxes to the IRS?
The IRS requires you to pay these taxes annually, quarterly, monthly, or semi-weekly depending on the amount of tax owed. Warning: If you accumulate taxes of more than $100,000 in a day, then you are required to deposit the taxes with the IRS by the next business day.
FICA, federal income tax, and Additional Medicare tax are paid most frequently, either monthly or semi-weekly. However, each quarter you will have to provide a summary on Form 941.
Federal unemployment tax is generally paid annually using Form 940. But for employers with a tax of more than $500, quarterly payments are required.
Hopefully, you’re feeling confident about processing your Nevada payroll. If you have questions, ask a Nevada accountant to lead the way. Also, Gusto makes payroll processing and compliance easy and affordable. Check it out for yourself!
Disclaimer
The information provided by the Employer Tax Calculator is for general information and estimation. All of the taxes or fees that apply to your business may not be accounted for, or fully up to date. Gusto, Inc. (dba “Gusto”) does not promise or guarantee that the information in the Employer Tax Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct result or an indirect consequence of its use. By using the Employer Tax Calculator, you waive any rights or claims you may have against Gusto in connection with its use.