Instructions For Form W-4na printable pdf download

INSTRUCTIONS

PURPOSE. Form W-4NA is to be used by payors of nonresident

braska 68509-4818. In the continental United States, call toll free

individuals to compute Nebraska income tax to be withheld from

(800) 742-7474; Lincoln residents call 471-5729.

payments for personal services in Nebraska. Personal services

PAYOR INSTRUCTIONS

include, but are not limited to, payments to nonresident entertain-

NAME AND LOCATION ADDRESS. Payor must complete the

ers, individual athletes, jockeys, performers, consultants, public

payee’s name, address, and social security number or federal

speakers, or other professional services.

employer identification number of the nonresident individual,

WHO MUST WITHHOLD. Any person paying a nonresident for

corporation, partnership, or limited liability company.

services substantially performed in Nebraska may be required to

LINE 2. Enter the total amount of the payment for personal

withhold Nebraska income tax. A person must withhold if the

services. Include any amounts paid to the service provider as

payee is not an employee; the payment is not subject to federal

reimbursement for expenses.

withholding; and the payor is either (1) making a payment or

LINE 9. If line 8 is less than $28,000 compute the amount to be

payments in excess of five thousand dollars ($5,000), or (2) main-

withheld. Otherwise, enter zero (0) and compute the amount to be

taining an office or transacting business within Nebraska and

withheld using line 10 instructions.

making a payment or payments of more than six hundred dollars

($600).

PAYEE INSTRUCTIONS

The payor and the nonresident must complete Form W-4NA

LINE 3. Ordinary and necessary business ex-

together. Nonresident individuals can use Form W-4NA to report

penses reasonably related to Nebraska income.

their business expenses and payments in performing personal

Expenses listed on this schedule are amounts paid for

services in Nebraska. If there are other payees receiving payments

travel, lodging, meals and other ordinary and necessary

for services performed in Nebraska as nonresident individuals,

expenses spent in earning your income in Nebraska.

each must complete a separate Form W-4NA.

LINE 4. Payments made to others for perform-

A U.S. nonresident alien whose country has a tax treaty with the

ances or appearances and other fees reasonably

U.S. may not be subject to nonresident withholding. The payor is

related to Nebraska income. Payments listed are

to obtain a written statement from the payee certifying the exis-

amounts paid to agents, or to others such as a percentage to

tence of such a treaty exempting U.S. income earned by the alien

agents or payments made to others assisting in the perfor-

from federal or state income tax.

mance. This does not include payments to partners, share-

holders, or members.

Payments to a corporation are subject to withholding require-

ments if 80% or more of the voting stock of the corporation is held

Special Note: If persons providing personal services also

by the shareholders who are performing personal services. Pay-

hire others to assist them, they may have a withholding

ments to a partnership or limited liability company are subject

responsibility on the payments made to such persons. If the

to withholding requirements if 80% or more of the capital interest

persons are hired as employees, then Nebraska’s regular

or profits interest of the partnership or limited liability company is

withholding rules apply. If the persons are not employees

held by the partners or members who are performing personal

and are nonresidents of Nebraska, then the person paying

services. See line 11 instructions.

them must follow the guidelines in Form W-4NA. They

should contact the department to receive a Withholding

The completed Form W-4NA is a part of the payor’s records

Certificate to withhold Nebraska tax.

and must be kept with other withholding tax records. Federal

Form 1099-MISC will be issued by the payor based on the infor-

LINE 11. If the payment was payable to a nonresident

mation on the completed Form W-4NA. The Forms 1099-MISC,

corporation, partnership, or limited liability company, the

state copies, will be included with the Form W-3N, Nebraska

Nebraska income tax withheld, computed on line 9 or line

Reconciliation of Income Tax Withheld, filed with the department.

10, must be distributed to the appropriate nonresident

shareholders, partners, or members.

PENALTIES. A penalty may be imposed, in addition to other

penalties provided by law, on a nonresident individual for giving

The payee is to use line 11 to distribute the amount withheld

false information to a payor regarding payments subject to with-

to the appropriate nonresident shareholders, partners, or

holding, if the information could result in the amount withheld

members. Federal Form 1099-MISC will be issued by the

totaling less than 75% of the income tax liability on such pay-

payor to each shareholder, partner, or member and must be

ments. A penalty may also be imposed on any payor who either

attached to their individual income tax return to receive

knowingly uses false information or who maintains records which

proper credit.

show the information is false.

SIGNATURES. The nonresident individual, corporate officer,

The penalties will equal: (a) the amount of tax evaded, not col-

partner, or member is to sign this certificate, and include his or her

lected, or not accounted for and paid over; and (b) an additional

telephone number. If the payee authorizes another person to sign,

amount up to $1,000.

there must be a power of attorney on file with the department or

TAXPAYER ASSISTANCE. Questions can be directed to the

attached to this certificate. Any person paid to prepare Form

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Ne-

W-4NA must also sign the certificate.

Instructions For Form W-4na

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