A liable employer is an individual or type of organization including any partnership, association, trust, estate, corporation, limited liability company or governmental agency who employs people and meets the coverage provisions of the Nebraska Employment Security Law. Neb. Rev. Stat. § 48-603
A “contributory employer" is a liable employer who is required to pay quarterly combined tax, which consists of contributions and state unemployment insurance tax on wages at the applicable combined tax rate. Neb. Rev. Stat. § 48-649
A "reimbursable employer" is a liable employer who elects to make payments in lieu of combined tax. Such an employer is required to reimburse the agency for benefits paid to former employees. The reimbursing employer option is available only to governmental entities and nonprofit organizations with a 501 (c)(3) IRS exempt status. Neb. Rev. Stat. § 48-649 (7)
Every employer who begins operations in this state and employs a person or persons is required to file an Application For An Unemployment Insurance Account Number, (UI Form 1) even though such an employer may not be liable to the Law. (See appendix for form). Neb. Rev. Stat. § 48-612. Upon receipt of the completed form, a determination of the employer’s liability will be made. An appeal for review from the liability determination may be made to the Commissioner of Labor within 30 days from the date of mailing of such a determination. Neb. Admin. Code 220, Chapter 12
You can get an application for an unemployment insurance account by calling 402.471.9898. You may also register for an account at dol.nebraska.gov/UIConnect
An employer becomes liable under the following circumstances: Neb. Rev. Stat. § 48-603
Liability of an employer is determined on a calendar year basis. This means that if an employer becomes liable during any calendar quarter, they are liable for the entire year and the following year. Neb. Rev. Stat. § 48-661. Combined tax is due for wages paid for the entire year up to the taxable wage base for the year.
Each employer’s account has the capability of carrying multiple addresses. For example, an employer desiring to have tax information sent to one address and the request for benefit separation (Form UI-350) to another address may do so by notifying the UI Tax Section, Attn: Status Unit, Box 94600, Lincoln, NE 68509.
Once an employer is determined liable, liability is continuous. To terminate coverage, a General Business Employer must not have in their employ one or more persons in 20 different weeks and not have a payroll of $1,500 in any calendar quarter. Both conditions must be met to terminate liability. Written application to terminate must be filed on or before January 31 following such year. Neb. Rev. Stat. § 48-661 (2)
Nonprofit Organizations exempt under Section 501(c)(3) of the Internal Revenue Code must complete a full calendar year in which they did not employ four or more persons in 20 different calendar weeks. Neb. Rev. Stat. § 48-661 (2)(b)
An Agricultural Employer must not have in their employ 10 or more persons in 20 different weeks and must not pay cash wages of $20,000 or more during any calendar quarter in order to terminate coverage. Both conditions must be met to terminate liability. Neb. Rev. Stat. § 48-661 (2)(c)
For a Domestic Employer to terminate coverage, a calendar year must be completed during which cash wages of $1,000 or more were not paid in a calendar quarter. Neb. Rev. Stat. § 48-661 (2)(d)
When an employer no longer has persons in their employ, they cease to be liable to unemployment insurance tax and the account will be terminated one year after employment ceases. The account must be reinstated if the employer again has employment within one calendar year after termination. If liability requirements have been reestablished, the account may be reinstated by written application if the employer again has employment within two calendar years after termination. Neb. Rev. Stat. § 48-652 (4)
Nonprofit organizations who have received a tax exemption under Section 501(c)(3) and governmental entities have the option of becoming liable to unemployment insurance on a contributory or reimbursable basis. A contributory employer pays quarterly unemployment insurance combined tax at an assigned rate based on experience. A reimbursable employer repays the agency for all benefits paid to former employees.
Before an eligible employer makes this decision, consideration should be given to the following:
A nonprofit or governmental organization that has elected to become a reimbursable employer for payments in lieu of combined tax must continue to occupy such status until it files a written notice terminating its election to be reimbursable not later than 30 days prior to the beginning of the taxable year for which such termination is to be effective. Neb. Rev. Stat. § 48-660.01 (2) (d)
Benefits paid on subsequent claims that include any quarter within the base period that is prior to the effective date of termination of the election shall be chargeable to the reimbursable account of such employer and such employer shall continue to be liable to reimburse such benefits paid after the date of termination. Neb. Rev. Stat. § 48-649 (6)
If an employer elects to change from reimbursable to contributory, the employer would be liable for combined tax payments as well as potential reimbursable charges for a period of time. Neb. Rev. Stat. § 48-649 (7)(c)
A nonprofit or governmental organization which has been paying combined tax may change to a reimbursable basis by filing not later than 30 days prior to the beginning of any taxable year written notice of election to become a reimbursable employer. Such election is not terminable for a period of two years. Neb. Rev. Stat. § 48-660.01 (2)
Employee leasing companies or professional employer organizations (PEOs) are required to report wages and pay combined tax for client workers under the account number for the client. Worksite employees are considered to be employees of the client for purposes of the Employment Security Law. Neb. Rev. Stat. § 48-648 (3)