Explaining State-specific Taxes

Updated March 27, 2017 -- For Administrators and Employees

The State of Nevada has issued special revenue bonds for the purpose of repaying federal loans needed to pay unemployment benefits. Employers subject to Nevada unemployment insurance (UI) taxes will be required to pay a quarterly bond tax to cover the principal, interest, and administrative payments on these bonds.

Why are these contributions collected?

These bond contributions are being specifically collected to repay the bonds issued by the State of Nevada, through the State Treasurer.

When are these contributions collected?

The collection of bond contributions began with the first quarter 2014, with a due date of April 30, 2014 and will continue to be collected quarterly from employers until the bonds are fully repaid in late 2017 or early 2018.

When are these bond contributions due?

All forms and contribution payments are due no later than the last day of the month following the end of the quarter. The default dates for this are April 30, July 31, October 31, and January 31.

How do I pay bond contributions?

Bond contributions are considered separate from unemployment insurance taxes and cannot be paid electronically. All associated forms and contributions should be sent to the following address:

Contributions Section
500 E. Third Street
Carson City, NV 89713-0030

For any questions about the Nevada Bond Assessment, please see the following page. The form for the contributions report can be found here.

Every employer who is subject to Nevada Unemployment Compensation Law (NRS 612) is also subject to the Modified Business Tax.

What is the Modified Business Tax?

The modified business tax covers total gross wages less employee health care benefits paid by the employer.

Total gross wages are the total amount of all gross wages and reported tips paid for a calendar quarter.
Exceptions to this are employers of exempt organizations and employers with household employees only.

Additionally, the Modified Business tax has two classifications, each of which has a different tax rate and form. You will need to file the form that is applicable to your business.

General Business
Financial Institutions (as defined under NRS 363A.050.)

How is it calculated?

The applicable tax rate is due on wages after deduction of health benefits paid by the employer and certain wages paid to qualified veterans. However, the first $50 ,000 of gross wages is not taxable.

For example, if the sum of all wages for the 9 /15 quarter is $101,000 after health care and qualified veteran wage deductions, the tax is $752.25:

$101,000 - $50,000 =$51,000 x MBT Rate

Zenefits Payroll calculates this liability for employers at the end of each quarter for remittance and filing.

When are these forms and tax payments due?

All forms and tax payments are due no later than the last day of the month following the end of the quarter. The default dates for submission are April 30, July 31, October 31, and January 31.

Forms and payments must be mailed to the address below:

Nevada Department of Taxation
PO Box 7165
San Francisco, CA 94120-7165

For additional questions about the Nevada Modified Business Tax, see the following page from the State of Nevada's Department of Taxation. All accompanying forms and instructions can be found here.

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