The State of Nebraska requires us to withhold Nebraska state income tax from certain payments made to non-resident companies and individuals who perform services in Nebraska.
- Nonresidents of Nebraska
- Who perform services in Nebraska
- And total payments for the calendar year are, or expected to be over $600
- Corporations, partnerships, and LLC are exempt unless: 80% or more of the company is held by the shareholder(s) performing the service (the requesting CU department needs to ask this specific question)
- Caterers and Catering Companies are exempt from this withholding per Department of Revenue. January 2007
- Some Booking Agent payments (ask vendor or department):
Must determine if they are an “independent agent” or a “production company”
- Independent agent = no withholding
- Production company = yes, withholding
Payment, after unreimbursed expenses* is less than $28,000 = 4%
Payment, after unreimbursed expenses* is $28,000 or greater = 6%
*Unreimbursed Vendor Expenses: These can be used to reduce the withholding rate up to 50%. The company must list the UNREIMBURSED expenses on the W4NA lines 3-5.