Nevada Payroll and Tax Overview for 2025
Nevada offers a unique landscape for payroll and tax compliance due to its lack of personal income tax and its reliance on other tax structures to fund state operations. Below is a comprehensive guide to Nevada’s tax and labor laws, payroll requirements, and compliance obligations for 2025.
Federal Payroll Taxes Applicable in Nevada
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FICA (Federal Insurance Contributions Act):
- Social Security Tax: Employers and employees each contribute 6.2% on wages up to the annual wage base of $160,200 (2025 limit).
- Medicare Tax: Employers and employees each contribute 1.45% on all wages, with an additional 0.9% paid by employees earning over $200,000.
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FUTA (Federal Unemployment Tax Act):
- Employers pay 6.0% on the first $7,000 of each employee’s wages. This rate can be reduced to 0.6% if the employer qualifies for the maximum state unemployment tax credit.
State Unemployment Tax Act (SUTA) in Nevada
- Nevada requires employers to pay into the state unemployment insurance fund.
- 2025 SUTA Rate: Ranges between 0.25% to 5.4%, depending on the employer’s experience rating.
- Taxable Wage Base: The first $40,100 of each employee’s wages.
- New employers are generally assigned a rate of 2.95% until they establish an experience rating.
Unique Features of Nevada Payroll
- No State Income Tax: Nevada does not impose a personal income tax, which simplifies paycheck calculations and eliminates the need for state income tax withholding.
- Modified Business Tax (MBT): Employers must pay MBT on gross wages after health insurance deductions.
- General Rate: 1.378% on wages exceeding $50,000 per quarter.
- Financial Institutions Rate: 2% on wages exceeding $50,000 per quarter.
Nevada Paycheck Stub Requirements
Nevada law mandates that employers provide employees with detailed earning statements. A Nevada paycheck stub must include:
- Gross wages earned
- Deductions (e.g., FICA, SUTA)
- Net wages earned
- Total hours worked (for hourly employees)
- Pay period dates
Labor Laws Impacting Payroll
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Minimum Wage:
- For 2025, the minimum wage is $12.00 per hour for employees without employer-provided health insurance and $11.00 per hour for those with employer-provided health insurance.
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Overtime:
- Overtime is required for hours worked over 40 in a workweek or over 8 hours in a 24-hour period, unless the employee agrees to a modified workweek schedule.
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Final Paychecks:
- Terminated employees must receive their final paycheck immediately.
- Employees who quit must be paid their final wages by the next regular payday or within seven days, whichever is earlier.
Penalties for Non-Compliance
- Late Payroll Taxes: Employers failing to remit SUTA taxes on time may incur penalties ranging from 1% to 10% of the tax due, depending on the delay duration.
- Wage Violations: Employers who fail to meet minimum wage, overtime, or final paycheck requirements can face penalties of up to $5,000 per violation and are liable for employee back pay and damages.
- Paystub Violations: Missing or incorrect paycheck stubs can result in fines and additional liabilities under Nevada labor laws.
Deadlines and Filing Requirements
- FUTA Filing: Quarterly payments via Form 940.
- SUTA Filing: Quarterly reports and payments are due by the last day of the month following the end of the quarter (e.g., April 30 for Q1).
- MBT Filing: Employers must file quarterly MBT returns with the Nevada Department of Taxation.
Explore Other States
For details on payroll compliance in neighboring states, check out:
- New Hampshire Paystub Generator
- Michigan Paystub Generator
- Oregon Paystub Generator
- Colorado Paystub Generator
For more payroll and stub information, visit our free paystub generator.