TAXES 17-12, Nebraska State Income Tax Withholding | National Finance Center

TAXES 17-12, Nebraska State Income Tax Withholding

Published: March 14, 2017
Effective: Pay Period 06, 2017

Summary

The income tax withholdings for the State of Nebraska will change as follows:

No action on the part of the employee or the personnel office is necessary.

Tax Formulas

State Abbreviation:

NE

State Tax Withholding State Code:

31

Acceptable Exemption Form:

W-4

Basis for Withholding:

Federal Exemptions (S/M,Number of Allowances)

Acceptable Exemption Data:

Y00, N00

TSP Deferred:

Yes

Special Coding:

Determine the Total Number of Allowances Claimed field as follows:
Y00 - Employee provides proof of number of exemptions claimed to receive the lower withholding percentage, if applicable.
N00 - Employee no longer wants to provide proof of number of exemptions claimed to receive the lower withholding percentage.

Additional Information:

A State tax certificate is not required since Federal exemptions are used in the computation of the State formula. Y00 will be entered for employees who have provided proof that they are entitled to lower withholding than required by LB223.

Withholding Formula (Effective Pay Period 06, 2017)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add taxable fringe benefits (i.e., taxable life insurance) to the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtracting this amount from the results in step 4 to compute the taxable income:

    Exemption Allowance = $1,960 x Number of Exemptions

  6. Apply the taxable income computed in step 5 to the following table(s) to determine the Nebraska tax withholding:

    Tax Withholding Table for Single or Head of Household

    If the Amount of Taxable Income Is:

    The Amount of Nebraska Tax Withholding Should Be:

    Over $0 but not over $2,975

    $0.00

    Over $2,975 but not over $5,480

    $0.00 plus 2.26% of excess over $2,975

    Over $5,480 but not over $17,790

    $56.61 plus 3.22% of excess over $5,480

    Over $17,790 but not over $25,780

    $452.99 plus 4.91% of excess over $17,790

    Over $25,780 but not over $32,730

    $845.30 plus 6.20% of excess over $25,780

    Over $32,730 but not over $61,470

    $1,276.20 plus 6.59% of excess over $32,730

    Over $61,470

    $3,170.17 plus 6.95% of excess over $61,470

    Tax Withholding Table for Married

    If the Amount of Taxable Income Is:

    The Amount of South Carolina Tax Withholding Should Be:

    Over $0 but not over $7,100

    $0.00

    Over $7,100 but not over $10,610

    $0.00 plus 2.26% of excess over $7,100

    Over $10,610 but not over $26,420

    $79.33 plus 3.22% of excess over $10,610

    Over $26,420 but not over $41,100

    $588.41 plus 4.91% of excess over $26,420

    Over $41,100 but not over $50,990

    $1,309.20 plus 6.20% of excess over $41,100

    Over $50,990 but not over $67,620

    $1,922.38 plus 6.59% of excess over $50,990

    Over $67,620

    $3,018.30 plus 6.95% of excess over $67,620

  7. If the employee is eligible for the lower withholding than required by Nebraska LB223, proceed to step 8. If the employee claims SINGLE and claims one (1) or fewer exemptions, proceed to step 8. If the employee claims MARRIED and claims two (2) or fewer exemptions, proceed to step 8. Otherwise, calculate the annual tax amount required by LB223 as follows:
    1. Calculate the annual tax following steps 1 through 6 except use one (1) exemption in step 5 for SINGLE filers and use two (2) exemptions in step 5 for MARRIED filers.
    2. Multiply the annual tax by 0.50 to get the annual minimum tax.
    3. If the annual minimum tax is greater than the annual tax based on exemptions claimed, then the annual tax amount is equal to the annual minimum tax. Otherwise, the annual tax amount is equal to the annual tax based on exemptions claimed.
  8. Divide the annual Nebraska tax withholding calculated in step 6 by 26 to obtain the biweekly Nebraska tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.