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4 Ways to Hire Employees In Nebraska

Hiring in Nebraska for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Nebraska:

Establishing a local entity: Creating a legal entity in Nebraska allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Nebraska’s labor laws, helping you hire in Nebraska without navigating the complex legal landscape yourself.
Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Nebraska’s labor regulations while offering competitive employee benefits.
Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Nebraska has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Nebraska.

Complying with Nebraska specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Nebraska, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good to Know

Nebraska's economy is diverse, with significant contributions from agriculture, manufacturing, and transportation. The state is a leading producer of corn and beef, which supports a robust food processing industry.

Nebraska consistently boasts one of the lowest unemployment rates in the United States, reflecting a stable job market and a strong work ethic among its residents.

Nebraska is a right-to-work state, meaning employees are not required to join a union or pay union dues as a condition of employment. This can influence labor relations and union presence within the state.

Misclassification of employees as independent contractors is a significant concern in Nebraska. Employers must ensure proper classification to comply with state labor laws and avoid penalties.

Key Things to Know About Hiring in Nebraska

Employment and Labor Laws in Nebraska

Working Hours in Nebraska

Nebraska has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.

1.Standard Workweek and Overtime

The typical workweek is 40 hours, aligning with federal standards.some text
Nebraska follows federal guidelines under the Fair Labor Standards Act (FLSA) for overtime pay at 1.5 times the regular hourly wage for hours worked beyond 40 in a workweek.

2.Meal and Rest Breaks

Employers in certain industries must provide a 30-minute unpaid meal break for employees working shifts of at least 8 hours.

Rest breaks are not mandated, but if provided, they must be paid in compliance with federal law.

Minimum Wage in Nebraska

As of 2025, the minimum wage in Nebraska is $13.50 per hour. This rate applies statewide, with no regional variations.

Overtime in Nebraska

Nebraska adheres to the federal Fair Labor Standards Act (FLSA) regarding overtime. Non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. Exempt employees, such as those in executive, administrative, or professional roles, are not eligible for overtime pay.

Onboarding New Hires in Nebraska

We can help you get your new employee started in Nebraska fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Nebraska

Payroll taxes in Nebraska are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance. Examples of payroll taxes include:

State Income Tax Withholding: Rates range from 2.46% to 6.84%, based on income levels and filing status.

State Unemployment Insurance (SUI): Rates range from 0% to 5.4%, depending on the employer's experience rating. New non-construction employers start at 1.25%, while new construction employers start at 5.4%.

Payroll Cycle in Nebraska

Employers in Nebraska must establish regular pay periods and notify employees in writing of any changes to payday at least 30 days in advance. Common payroll cycles include weekly, biweekly, semimonthly, and monthly schedules.

Looking to grow your team in Nebraska?

Stay Compliant: Navigate Nebraska’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive Nebraska and federal employee benefits for a stronger team.

Nebraska Employment Taxes

Employer Tax Contributions

Employers in Nebraska are responsible for paying employment taxes such as State Unemployment Insurance (SUI). These contributions range from 0% to 5.4%, depending on the employer's experience rating. Employer payroll contributions are generally estimated at an additional 1.25% to 5.4% on top of the employee salary in Nebraska.

Employment Tax Type	Tax Rate
State Unemployment Insurance (SUI)	0% - 5.4%

Employee Tax Contributions

Employee tax contributions are generally estimated at 2.46% to 6.84% of employee salary in Nebraska.

Employee Payroll Tax Contribution	Tax Rate
State Income Tax	2.46% - 6.84%

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Nebraska tailored to your needs.

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Employee Benefits Requirements in Nebraska

Employers in Nebraska must comply with federal and state regulations regarding employee benefits. Learn more about providing employee benefits.

Employee Benefits For Nebraska

Competitive benefits are essential for attracting and retaining top talent in Nebraska. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Nebraska packages include:

Pension or 401(K)
Vision Insurance
Life Insurance
Medical Insurance
Dental Insurance
Health Savings Plan (HSA)
Flexible Spending Account (FSA)

Paid and Unpaid Leave Policies in Nebraska

Sick Leave

Employers must provide paid sick leave, allowing employees to accrue one hour of leave per 30 hours worked, up to a maximum of 40-56 hours annually based on company size.

Family and Medical Leave

Nebraska adheres to federal FMLA regulations, offering up to 12 weeks of unpaid, job-protected leave for eligible employees.

Jury Duty Leave

Employers must provide unpaid leave for employees serving on a jury.

Voting Leave

Employers must grant up to two hours of paid leave for voting if employees lack two consecutive non-work hours while polls are open.

Military Leave

Employees in the National Guard or Reserves are entitled to unpaid leave for military service.

It’s Easy To Manage Benefits For Employees In Nebraska With Playroll

Employment Termination Protocols in Nebraska

Hiring Employees in Nebraska with an employer of record

An Employer of Record makes it easy to hire in Nebraska if you don’t have your own entity set up, by handling the heavy-lifting for you. They take care of compliant employment contracts, all required taxes, and benefits administration for you, so you can focus on growth instead

The employer of record is responsible for:

Employment Compliance: Ensure all employment contracts comply with Nebraska's labor laws and regulations, including proper classification of employees.
Payroll Management: Calculate, process, and distribute employee salaries in accordance with Nebraska's payroll laws, including deductions for taxes and social security contributions.
Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Nebraska's legal requirements.
Benefits Administration: Provide mandatory employee benefits as required by Nebraska's labor laws, such as health insurance, pension contributions, and statutory leave.

Employer of Record for Nebraska

How to Hire Employees in Nebraska