Nevada does not have a state income tax, and its overall reporting requirements are easy to follow. It does not require state disability insurance but does charge state unemployment taxes (SUTA) quarterly.
You may prefer to find a payroll software or service that handles all the rules and filings for you. Gusto covers Nevada along with the other 49 states and stays up-to-date on state compliance rules. You can pay your employees via direct deposit at no additional cost, and health insurance for Nevada is available. Click below to start a 30-day free trial.
Below are the basic steps for managing payroll, with specific instructions on how to do payroll in Nevada. Since it does not have a state income tax, filing is relatively easy; you only need to be concerned with SUTA withholdings.
Step 1: Set up your business as an employer. At the federal level, you need your EIN and an account in the Electronic Federal Tax Payment System (EFTPS) Electronic Federal Transfer System.
Step 2: Register with the state of Nevada. Use your federal EIN to register for a Nevada UI tax account. Go to the Employer Self Service section of the Nevada’s UI website, and click on “I want to Create a new online user account.”
If you want to pay by ACH Debit, you need to fill out the ACH Debit Authorization Form and fax it to the state for approval.
Step 3. Set up your payroll. Nevada does not have any special pay issues, so this should be straightforward.
Step 4: Collect employee payroll forms. This is easiest if you do it during onboarding. Some of the most common payroll forms that small businesses need include W-4, I-9, and Direct Deposit information. Nevada does not have additional forms, although you will want to report your new hires.
Step 5: Collect, review, and approve time sheets. If you have employees who work or live out of state, track where they perform the bulk of their work, as it can affect whether or not you are liable for state UI. Use one of our free time sheet templates if you plan to do this manually.
Step 6: Calculate payroll and pay employees. When you perform payroll calculations for your business, be sure to include garnishments and ensure your pay stub is itemized.
Step 7. File payroll taxes with the federal and state governments. Follow the IRS instructions for federal taxes, including unemployment. Nevada requires you to file the NUCS 4072 quarterly even if you do not need to pay anything. The state should send you a preprinted form; if you don’t receive it, call the Department of Employment, Training and Rehabilitation to get one.
For Wages Paid During
Calendar Quarter Ends
Must be Filed and Paid By
Jan, Feb, Mar
Apr, May, Jun
Jul, Aug, Sep
Oct, Nov, Dec
You may file on the next business day if any of these dates fall on a Saturday, Sunday, or legal holiday.
You can pay with a check if you owe less than $10,000. If you exceed that, you need to file and pay electronically. If you pay by paper, send the form and check to:
Department of Employment, Training and Rehabilitation
Employment Security Division, Contributions Section
500 East Third Street
Carson City, Nevada 89713-0030
Be on time! Nevada charges a $5 late fee, plus 1% interest for each month or partial month you are overdue.
Step 8: Document and store your payroll records. Nevada requires you to retain records for all employees, even those terminated, for at least two years. Learn more in our article on retaining payroll records.
Step 9: Do year-end payroll tax reports. These are the federal Forms W-2 (for employees) and 1099 (for contractors.) Employees and contractors must have these by Jan. 31 of the following year.
For greater detail on general payroll procedures, consult our article on how to do payroll.
Nevada Payroll Laws, Taxes, and Regulations
Nevada requires employers to pay for state unemployment insurance taxes (SUTA) and workers’ compensation insurance but not state income taxes or disability insurance. The rules are close to the federal laws, and filing is quarterly.
Nevada State Unemployment Insurance Taxes (SUTA)
With some exceptions, if you pay more than $225 in wages during a calendar quarter, you are liable for state UI tax withholdings. The tax rate for new employers is 2.95% of taxable wages. After that, the state determines your rate for you and sends it to you on your preprinted Form NUCS 4072. Nevada has 18 tax rates ranging from 0.25% to 5.4% of employee wages up to $33,400 for 2021. If you pay less than 5.4%, you’ll also pay a Career Enhancement Program tax of 0.05%.
Most employers have to pay SUTA. Even agricultural employers are liable if they paid wages of over $20,000 or employed 10 or more people. Nevada exempts:
- Domestic workers in private homes
- Workers on a foreign vessel or aircraft abroad
- Patients working in the hospital
- Students in student programs
- Spouses working in schools in exchange for financial assistance
- Certain nonprofits or charities
- Minors delivering newspapers
- Agent-drivers, commission-drivers
- Some salespeople working on commission
Did you know?
You’re in luck! There are no state income taxes in Nevada, so you don’t need to worry about state income tax withholdings. You still need to calculate, file, and pay federal income tax withholdings, however.
Workers’ Compensation Insurance
Nevada requires employers to have workers’ compensation insurance for all workers, even aliens and minors, but excludes casual or theater performers, domestic workers in the home, volunteers, clergy, real estate brokers, workers doing direct sales via phone, and commission workers like salespeople. You can get your own policy, but it should include at least the following:
- Medical treatment
- Lost time compensation (Temporary Total Disability/Temporary Partial Disability)
- Permanent Partial Disability
- Permanent Total Disability
- Vocational Rehabilitation
- Dependent’s benefits in the event of death
- Other claims-related benefits or expenses (e.g., mileage)
Minimum Wage Rules in Nevada
Currently, you must pay at least $9 per hour to employees; $8 per hour if you provide healthcare benefits. However, the state is increasing minimum wages through 2024.
Wage w/o healthcare
July 1, 2021
July 1, 2022
July 1, 2022
July 1, 2024
The following employees are exempt from minimum wage requirements:
- Workers employed under a valid collective bargaining agreement where minimum wage, tip credit, or other minimum wage provisions have been waived in clear and unambiguous terms
- Employees younger than 18
- Workers employed a nonprofit organization for after-school or summer employment
- Paid trainees for a period of up to 90 days
Nevada Overtime Regulations
Nevada sets a standard overtime rate of time-and-a-half of the employee’s wage rate when the employee works more than 40 hours in a workweek or more than eight hours in a day, unless the agreed-upon schedule is four days at 10 hours a day. These are exemptions:
- Employees of businesses earning less than $250,000 per year in gross sales volume
- Employees in retail or service if their regular rate is already more than 1.5 times the minimum wage and over half their compensation comes from commissions
- Bona fide executive, administrative, or professional employees
- Employees covered by collective bargaining agreements that provide for overtime in other ways
- Drivers, drivers’ helpers, loaders, and mechanics for motor carriers subject to the Motor Carrier Act of 1935
- Railroad workers
- Aircraft employees
- Drivers and drivers’ helpers making local deliveries and paid by trip or other payment (like mileage)
- Taxi and limo drivers
- Agricultural employees
- Auto salespeople and mechanics of auto dealers
- Domestic workers
Reporting Out-of-State Employees
In some cases, out-of-state employees still count for Nevada tax filing. It’s similar to other states:
- If a worker performs all or most of his work in Nevada, his wages must be reported to Nevada.
- If a worker performs some work in Nevada, but most elsewhere, all wages should be reported in the state where his “base of operations” lies. A base of operations is the place from which he works, whether an office or a home.
- If the employee lacks a “base of operations” or a specific location from where he gets direction and control, wages should be reported to Nevada if that is his residence.
Different Ways to Pay Employees
Nevada does not require you to pay employees in a specific manner, but you cannot discriminate against those who do not have a bank account. Therefore, you should offer a check or pay card option.
To learn more about the types of payments you can make, check out our suggestions on the different ways to pay your employees.
Pay Stub Laws
You need to provide employees with pay stubs that itemize their paycheck, including gross pay, deductions, net cash wages/salary, date of payment, and hours worked. Failure to do so can result in a $5,000 administrative fine and even misdemeanor charges.
If you’re doing payroll on your own and need a quick way to print a pay stub, download one of our free payroll stub templates.
Minimum Pay Frequency
Nevada requires you to pay employees semi-monthly at least. You can agree on a different schedule, but cannot make that agreement a term of employment. Wages earned before the first of the month must be paid by 8 a.m. on the following 15th. Wages earned on the first through the 15th must be paid by 8 a.m. on the last day of the month.
Exceptions include those in an executive, administrative, or professional capacity, outside salespersons, or supervisors as defined in 29 U.S.C. § 152, Ê.
Non-wage compensation, such as lodging or meals, may be considered part of wages. Lodging cannot constitute more than five times the minimum hourly wage each week. Breakfasts and lunches cannot be counted at more than 25% of minimum wage, and dinner, no more than 50%.
Paycheck Deduction Rules
Your employees will most likely never take home the exact amount they earn. Most people are required to pay taxes, so you’ll at least have to deduct money to cover what they owe. There are other reasons you may find yourself needing to withhold funds from your employees’ paychecks. Some expenses are allowed, but others can get you in trouble.
Specifically, you may deduct the following:
- Garnishments from legal judgements, including unpaid taxes and child support
- Tax, FUTA, and SUTA
- Employee’s share of health insurance and other benefits
- Recompense for damages caused by the employee in the workplace
Legal garnishments cannot exceed 82% of the take-home pay for any workweek if the employee’s gross weekly pay when the most recent writ of garnishment issued was $770 or less, or 75% of the take-home pay for any workweek if the gross weekly pay exceeded $770. If the employee’s weekly take-home pay is less than 50 times the federal minimum hourly wage, the entire amount may be exempt.
You also cannot charge workers for required uniforms or accessories if they are distinctive in style, color, or material.
Final Paycheck Laws
Termination pay must be paid immediately if you discharge an employee. If the employee quits, you must pay final wages no later than their usual payday or seven days after the employee quits, whichever is earlier.
Accrued Paid Time Off
In Nevada, you have the choice of front-loading leave at the start of the year or letting leave accrue. You must let leave carry over into the next year unless it exceeds 40 hours in a benefit year. You can institute a use-or-lose policy for PTO over 40 hours.
If you front-load leave, have a clear, written policy about reimbursement if the employee quits. Nevada does not require you to pay front-loaded leave if the employee quits. If you fire the person, you cannot deduct untaken paid leave from the final paycheck.
Nevada HR Laws That Affect Payroll
Nevada is relatively easy when it comes to payroll laws. Many align with federal rules, but you do need to know them. The state Department of Labor (DOL) made changes in recent years to the minimum wage and PTO requirements, and other regulations may be next.
Nevada New Hire Reporting
You must report new hires within 20 days of their hire dates. This includes rehires if they have been separated from your employment for more than 60 days. While the state has a new hire form, it’s not required. However, you must include:
- Employee’s Full Name
- Employee’s Social Security Number
- Employee’s Address (City, State, and ZIP code)
- Employer’s Federal Employer Identification Number
- Employer’s Name
- Employer’s Address (City, State, and ZIP code)
- Employee’s Start Date
- Date of Birth (optional)
- State of Hire (optional)
You can send the information electronically, by mailing in the W-4 form to the Employment Security Division, or by faxing in a new hire form or the information listed above.
Time Off Requirements
Typically, you pay employees for the time they work but not when they don’t. However, there are more specifics around breaks and PTO that you may need to comply with.
Lunch and Other Breaks
Employees must get a 30 minute lunch break every eight hours, plus 10 minutes for every four hours worked or major fraction thereof. These rules do not apply
- If the employee works less than 3.5 hours in a day
- If the employee is the only person at the location
- To employees included in a collective bargaining agreement
Nursing mothers must be given sufficient break time and a private area to express breast milk.
Paid Time Off
Nevada leave laws apply to employers with 50 or more employees. You must allow at least 0.01923 hours of paid leave for each hour of work performed. Nevada requires you give paid leave at the pay rate the employee is compensated for at the time they take leave. If the employee earns commissions, salary, or piece-rate earnings other than hourly, calculate leave pay by dividing total wages paid for the 90 days preceding the leave divided by the number of hours worked in that period. Do not include bonuses given in that period.
If an employee leaves, you are not required to compensate them for unpaid leave, unless you rehire them within 90 days of termination and the employee did not leave by choice.
Nevada law allows for 160 hours of leave for an employee who is a victim of domestic violence or whose family member was a victim of domestic violence (and the employee was not the perpetrator). This can be paid or unpaid and applies to up to 12 months after the violence occurred. Read NRS 608.0198 for more details.
Sick Leave/Family Leave/Maternity Leave
As with PTO, this applies to employers with over 50 employees. Nevada closely follows federal laws when it comes to this kind of leave. The employee must have worked at least 1,250 hours in the 12 months before the leave and may have up to 12 weeks of family medical leave for
- Birth of the employee’s child and care of the newborn
- Placement of the child with the employee for adoption or foster care
- Care for the employee’s spouse, parent, or child with a serious health condition
- Employee’s own serious health condition
Accrued leave may be used as well, and leave can be taken intermittently.
Voter time off
Employers must give employees sufficient time off to vote. You cannot deduct pay for taking time off to vote, but you can designate what time the employee takes.
Distance to voting station
< 2 miles
2 to 10 miles
> 10 miles
State Disability Insurance
Nevada does not require you to pay disability insurance, nor does it have a state disability insurance program. However, such policies protect both you and your employees plus make you a more attractive employer to applicants.
Tips are recorded separately when filing SUTA. While they are considered for the employee’s compensation, they are not part of the maximum weekly benefit amount. Per NRS 608.160, you may not take all or a part of any tips or gratuities or apply them as a credit toward the payment of the minimum wage.
NRS 609.240 defines provisions for working minors. Children under 16 may not work more than eight hours in a day or 48 hours in a week. A child being in their place of employment during working hours will be considered working.
Children under 14 are not allowed to work unless they have written permission from a district judge or his designee. Farmwork, housework, and acting in a motion picture are the exceptions. Only child actors are exempt from working during public school hours unless excused by the school district or by order of juvenile court.
For more information about payroll and HR laws employers need to know, check out our payroll compliance guide.
Nevada Payroll Forms
Nevada has few payroll forms, making paperwork easier. Of course, there are federal forms to keep track of as well.
Nevada Form W-2
No state income taxes, no state W-2. That was easy!
Other Nevada Withholding Forms
- Form NUCS 4072, Employer’s Quarterly Contribution and Wage Report: For filing UI taxes by paper. You should get a pre-filled copy from the state each quarter. As of the writing of this article, the Nevada Unemployment Insurance site gave an error message when we tried to access the form. Continue to check back if you need to download it.
- ACH Debit Authorization: for paying UI taxes via ACH debit.
- State of Nevada New Hire Report: Useful, but not required.
Federal Payroll Forms
- W-4 Form: To help employers calculate taxes to withhold from employee paychecks
- W-2 Form: To report total annual wages earned (one per employee)
- W-3 Form: To report total wages and taxes for all employees
- Form 940: To report and calculate unemployment taxes due to the IRS
- Form 941: To file quarterly income and FICA taxes withheld from paychecks
- Form 944: To report annual income and FICA taxes withheld from paychecks
- 1099 Forms: To provide non-employee pay information that helps the IRS collect taxes on contract work
For a more detailed discussion of federal forms, check out our guide on federal payroll forms you may need.
Nevada Payroll Tax Resources and Sources
- Unemployment Insurance Information: FAQs, schedules, links to forms
- NAC 612: Nevada unemployment compensation regulations
- NRS 612: Nevada unemployment compensation statutes
- Nevada Department of Taxation: Forms, online services, COVID-19 tax credit information, and more
- Nevada Department of Labor: Rules about workers’ comp and more
Nevada has straightforward payroll laws, but you should carefully consider requirements as there are fines and penalties for not adhering to them, plus the state has recently made some changes. In addition, federal payroll and HR laws must still be followed.
If you’d prefer to let someone else handle the details so you avoid paying penalties or fines, using a payroll software like Gusto can help. In addition to paying employees, it calculates and files payroll taxes, provides benefits management, and offers insurance in Nevada. Try it free for 30 days.