# TAXES 18-35, Nebraska State Income Tax Withholding

Published: March 21, 2018

Effective: Pay Period 06, 2017

## Summary

This tax bulletin is being updated to remove the number of pay periods in steps 4 and 8 and replace with the phrase "number of pay dates in the tax year," thereby preventing any confusion in future years. All other information in this bulletin remains the same.

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: |
, |

TSP Deferred: |
Yes |

Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: |

Additional Information: |
A State tax certificate is not required since Federal exemptions are used in the computation of the State formula. 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)

- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- 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.
- Add taxable fringe benefits (i.e., taxable life insurance) to the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- 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

- 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

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

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

- 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:
- 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.
- Multiply the annual tax by 0.50 to get the annual minimum tax.
- 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.

- Divide the annual Nebraska tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Nebraska tax withholding.

## Resources

To view the updated tax formula, go to the

page from the drop-down menu on the National Finance Center (NFC) homepage. Select the tab and select from the 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

or via the customer service portal.