What is the Nevada Modified Business Tax?

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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