Payroll and Benefits Guide - United States - Nebraska

United States - Nebraska


United States Dollar



Employer Taxes

14.90% – 20.30%

Date Format


Fiscal Year

1 Jan – 31 Dec

Fun Facts

Nebraska is home to the Henry Doorly Zoo in Omaha, consistently ranked as one of the best zoos in the world.

The world’s largest hand-planted forest, Halsey National Forest, is located in Nebraska.

Nebraska is known for its wide-open spaces and expansive prairies, earning it the nickname the “Great Plains State.”

Arbor Day, a holiday dedicated to tree planting, was founded in Nebraska by J. Sterling Morton in 1872.

The University of Nebraska, with its main campus in Lincoln, is known for its successful football program and passionate fans.

The state has more miles of river than any other state in the United States.



Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance0.00% – 5.40%
Unemployment Insurance0.00% – 5.40%
Unemployment- New Employer0.90%
FICA Social Security6.20%
FICA Medicare1.45%
FUTA0.60% – 6.00%


Payroll Cycle

Employees are paid monthly or semi-monthly.

13th Salary

There are no provisions in the law regarding 13th salaries.

Work Hours and Week

In Nebraska, the workweek is a maximum of 40 hours per week or 8 hours per day.


In Nebraska, the Fair Labor Standards Act (FLSA) applies, and overtime pay is given for work exceeding 40 hours per week at 150% of the regular pay. Working on weekends or rest days generally doesn’t require extra payment unless under exceptional circumstances, in which case overtime pay is also at 150% of regular pay.



Paid Time Off

There are no statutory laws on paid time off in Nebraska.

Public Holidays

There are 11 Public holidays

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

Maternity Leave

Maternity leave falls under the FMLA.

Paternity Leave

Parental leave falls under the FMLA.

Parental Leave

Paternity leave falls under the FMLA.


Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated “at will.”

Notice Period

Nebraska follows an “at-will” employment policy, allowing termination without notice. There is no legal requirement for payout of unused vacation days, but employers usually compensate if given advance notice. Two weeks’ notice is commonly expected. The WARN Act mandates 60 days’ notice for mass dismissals.

Severance Pay

Except when outlined in an employment contract or collective bargaining agreement, employers are not required not make severance payments. However, many employers choose to offer severance pay and base the amount on the length of employment.

Probation Period

Probation Period

No legal provision governs a formal “trial /probation period.” However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of between 3 and 6 months.


Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security or the United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a visa stamp from a United States embassy or consulate (Canadian citizens are exempt from this requirement). To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request.

For Work Permits








Nebraska has a minimum combined 2023 Sales Tax Rate of 6.85% (State tax at 5.50% and Local tax average 1.35%).