Instructions For Form 20 - Nebraska Tax Application And Form 941n - Nebraska Withholding Return

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INSTRUCTIONS
WHO MUST FILE. If you have an office or conduct business in
federal identification number has changed, the new owner,
Nebraska, and pay wages, gambling winnings, pensions and annu-
partnership, LLC, or corporation must complete and return a
ities, or if you make payments to nonresidents performing personal
Nebraska Tax Application, Form 20. The former owner,
services in Nebraska then prior to filing any deposits or returns,
partnership, LLC, or corporation must cancel all permits, licenses,
you must:
and certificates by filing Nebraska Change Request, Form 22.
1. Apply for a withholding number on a Nebraska Tax
PENALTY AND INTEREST. There are penalties and interest
Application, Form 20. You will be issued a withholding
for failure to timely remit income tax withheld. The penalty is 5
certificate by the state, and
percent per month, up to 25 percent, of the line 7 amount. A $25
penalty can also be levied for failure to timely file Form 941N.
2. You will be mailed a Nebraska Withholding Return,
Interest is at the rate shown on line 9, calculated from the due date
Form 941N.
to the date payment is received.
If you temporarily discontinue making payments, Form 941N must
ANNUAL RECONCILIATION. A Nebraska Reconciliation of
still be filed for each period. If you expect to no longer make pay-
Income Tax Withheld, Form W-3N, will be mailed to you in early
ments subject to Nebraska withholding, please check the box below
January separate from the Form 941N. A Form W-3N will be also
your name and location address. A “final” Nebraska Reconciliation
be mailed when you indicate you are no longer making payments
of Income Tax Withheld, Form W-3N, will be sent to you later in the
subject to Nebraska withholding.
year to reconcile your account. The W-3N must be filed even if you
did not make payments subject to withholding.
MONTHLY DEPOSITS, FORM 501N. If the Nebraska tax
ANNUAL FILERS. If the Nebraska income withheld by you is
withheld is more than $500 for the first or second month in a
less than $500 a year, you may be licensed to file on an annual basis.
quarter, you must make monthly deposits. File Nebraska
Those employers licensed to file one Form 941N to report all
Monthly Withholding Deposit, Form 501N, with the department.
withheld amounts for an entire year must file the Form 941N
If a Form 501N is required for the first month of a quarter, one
preidentified to them on which they report the wages paid and
must also be filed for the second month, even if the amount
income tax withheld for the year. In addition, Form W-3N, which is
withheld is not more than $500. If you expect your monthly
sent under separate cover, must also be filed along with the state
Nebraska income tax withheld to be more than $500, attach a
copies of Forms W-2 issued to employees.
statement to your return requesting that Forms 501N be sent to
you. If you are not currently receiving a Form 501N, but need to
WITHHOLDING TAX BASE. Nebraska requires withholding on
make a monthly deposit, you can make the deposit by mailing the
several types of payments. These include wages, gambling winnings,
payment along with your business name as it appears on your
and pension payments subject to federal withholding. State
Nebraska Withholding Return, Form 941N, your Nebraska identi-
withholding on pensions only applies when requested by the
fication number, and the month for which the payment is made. If
annuitant. Withholding is also required on payments made to
monthly deposits are required for more than one quarter per year,
nonresidents who perform personal services in Nebraska but are not
you should request that Form 501N be sent to you.
employees. See Form W-4NA which is included in Circular EN, or
request the department’s information guides for these programs for
LINE 2. ANNUAL FILERS enter the amount withheld for the
more information on Nebraska income tax withholding.
year on lines 2, 4, and 7. Annual filers skip lines 3, 5 and 6.
WHEN AND WHERE TO FILE. File starting with the first
LINE 3, ADJUSTMENT OF WITHHELD INCOME
calendar quarter or year in which you are required to withhold state
TAX. (QUARTERLY FILERS) Use line 3 to correct errors in
income tax.
tax withheld from wages paid in earlier quarters of the same
calendar year. Explain by attaching a statement that shows:
If you are licensed as an annual filer by the Nebraska Depart-
ment of Revenue, your return is due by January 31 of the following
1. What the error was;
year. Caution: You cannot file on an annual basis unless you have
2. The quarter in which the error was made;
been licensed as an annual filer. You must also separately file Form
W-3N.
3. The amount of the error for each quarter;
A return is required even if there have been no payments subject to
4. The quarter in which you found the error; and
withholding. Mail this return and payment to the Nebraska
5. How you and your payees have settled any overcollection
Department of Revenue, P.O. Box 94818, Lincoln, Nebraska
or undercollection.
68509-4818.
Do not use this line to adjust income tax withholding for
PREIDENTIFIED RETURN. This return is to be used only by
earlier years. Contact the department if the Nebraska tax with-
the employer or payor whose name is printed on it. If you have not
held and remitted in a prior year was incorrect.
received a return from the department for the reporting period,
If you have requested that an overpayment from a previous
request a duplicate. Do not file returns which are photocopies, or
year’s Form W-3N be transferred to this year, do not use the
which are for another tax period. If you use an approved software
resulting credit until it appears on line 10 of your
form, the name and state I.D. number must match the name and
preidentified Form 941N.
number as they appear on the preidentified form sent to you.
LINE 10. A balance due or credit resulting from a partial pay-
NAME AND/OR ADDRESS CHANGES. If the business
ment, math or clerical errors, penalty, or interest on prior returns
name, location, or mailing address is not correct, mark through the
is entered in this space by the department. The interest shown
incorrect information and plainly print the correct information. If
includes interest on the unpaid withholding through the due date
you have moved to a new location, please indicate this. Note, if you
are licensed for sales tax under this same number, the location address
of this return. If the amount owed is paid before the due date,
interest will be recomputed and credit will be given on your next
must be the one used for the sales tax permit. The location address
return. If the amount entered has been satisfied by a prior pay-
cannot be a P.O. box number.
ment, it should be disregarded when calculating line 11.
If this is a name change only, and the ownership or FEIN number
hasn't changed, indicate, “Name change only”. If this is an
Contact the department if you have a question regarding a credit or
ownership transfer or change, or a change in legal form, or your
balance due.

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