Easily manage employment in Nevada

Payroll management in Nevada

Nevada has a strong economy supported by industries such as tourism, gaming, entertainment, and technology. With state-specific payroll regulations, including a two-tiered minimum wage system and no state income tax, employers in Nevada must ensure compliance with both state and federal payroll laws. Understanding these regulations is crucial for smooth payroll operations and compliance.

Payroll breakdown in Nevada

Employers in Nevada must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:

Minimum wage and overtime

• Minimum wage: Nevada’s minimum wage follows a two-tiered system based on whether the employer provides health benefits:
• $11.25 per hour for employers offering health benefits.
• $12.00 per hour for employers not offering health benefits.
• Overtime rules:
• Nevada follows federal overtime laws, requiring employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 hours in a workweek.
• If an employee earns less than 1.5 times the minimum wage and works over 8 hours in a single day, they are also eligible for daily overtime pay.
• Some exemptions apply based on job classification and industry.

State income tax

• Nevada does not impose a state income tax, meaning employers are only responsible for federal income tax withholding.

Unemployment insurance (UI) tax

• Employers must contribute to Nevada’s Unemployment Insurance (UI) program, managed by the Nevada Department of Employment, Training & Rehabilitation (DETR).
• The UI wage base in Nevada is $40,100.
• UI tax rates vary based on an employer’s experience rating and range from 0.3% to 5.4%.
• New employers typically pay a 2.95% UI tax rate.

Workers’ compensation

• Nevada law requires all employers to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
• Some exemptions apply, including certain independent contractors and real estate agents.

Payroll tax filing and payment deadlines

• Employers must register for a Nevada Business Tax Account with the Nevada Department of Taxation.
• Modified Business Tax (MBT): Employers paying over $50,000 in wages per quarter must pay the MBT at a rate of 1.378% on taxable wages.
• UI tax reports must be submitted quarterly to the Nevada Department of Employment, Training & Rehabilitation (DETR).
• Payroll tax payments can be made electronically through the Nevada Tax Center portal.

Quick facts: Important considerations for employers

• State minimum wage compliance: Nevada’s two-tiered minimum wage system requires employers to determine compliance based on health benefits provided.
• Final paycheck rules:
• If an employee is terminated, employers must provide the final paycheck immediately.
• If an employee resigns, the final paycheck must be provided by the next scheduled payday or within seven days, whichever comes first.
• New hire reporting: Employers must report new hires to the Nevada New Hire Reporting Center within 20 days.
• Paid sick leave: Nevada requires employers with 50 or more employees to provide paid leave that accrues at a rate of 0.01923 hours per hour worked (approximately 40 hours per year).
• Payroll recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
• Right-to-work state: Nevada is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Run payroll in Nevada with Remote

Managing payroll in Nevada requires careful attention to state-specific regulations, including minimum wage compliance, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be, book a demo with Remote today.