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Nebraska is reducing its top income tax rate (5.84% in 2024, targeting 5.2% by 2027) while its minimum wage is increasing toward $15/hour by 2026. Omaha is a major financial services hub. Rippling handles Nebraska DOR, NDOL, and workers’ comp compliance.
Nebraska is a Great Plains economy with strengths in agriculture, food processing, financial services (Omaha is a major corporate headquarters hub), transportation (Union Pacific), and a growing technology sector. Nebraska is progressively reducing its top income tax rate (5.84% in 2024, targeting 5.2% by 2027) while its voter-approved minimum wage is increasing toward $15/hour by 2026. Nebraska is a right-to-work state with no state-mandated paid leave.
Rippling’s Nebraska payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| NE SUI (NDOL) | New employer 1.25% | On first $9,000 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for most employers with employees |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Nebraska State Income Tax | 2.46%–5.84% | 4-bracket progressive; top rate 5.84% in 2024 (reducing to 5.2% by 2027) |
| Nebraska Income (Single, 2024) | NE Rate |
|---|---|
| Up to $3,700 | 2.46% |
| $3,701–$22,170 | 3.51% |
| $22,171–$35,730 | 5.01% |
| Above $35,730 | 5.84% |
NE withholding remitted to Nebraska DOR. Annual W-3N reconciliation.
Final Pay: Nebraska requires final pay on the next regular payday. Accrued vacation: Nebraska Wage Payment and Collection Act treats promised vacation as wages if the employer’s policy provides for payout.
Nebraska is reducing its top income tax rate: 6.84% (2023) → 5.84% (2024) → 5.20% (2027). The state has enacted a phased rate reduction schedule. Rippling updates NE withholding annually as reductions take effect.
Omaha is the headquarters of major corporations including Berkshire Hathaway, Union Pacific, TD Ameritrade, Mutual of Omaha, and First Data. The financial services, insurance, and transportation sectors drive strong professional employment. Omaha’s tech scene is growing, with a cost-of-living advantage over coastal markets making it attractive for distributed teams.
Nebraska’s minimum wage was $10.50/hour in 2023 and increased to $12.00/hour on January 1, 2024, with further increases to $13.50/hour (2025) and $15.00/hour (2026) under a voter-approved ballot measure. Rippling updates NE minimum wage annually.
Nebraska requires workers’ comp coverage for most employers with one or more employees. The Nebraska Workers’ Compensation Court administers claims. Coverage through private insurers or self-insurance (with state approval). Rates vary by occupation risk classification.
