Employer of Record for Nevada

In Nevada, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in Nevada.

Do I Need an EIN or Payroll Tax Number To Employ in Nevada

To employ individuals in Nevada, you are required to obtain both a federal Employer Identification Number (EIN) and register for state payroll tax accounts. An employee does not need an EIN or Payroll tax number.

Working Hours in Nevada

Seven consecutive 24-hour periods, which can begin on any day and at any time. Employers typically define this workweek in advance, since it determines how overtime is calculated under state and federal law.

What Is Considered Full-Time Employment in Nevada?

Nevada does not have a specific law that strictly defines the term “full-time employment”, so the classification can depend on the employer's policies. However, full-time employment is typically considered to involve working 40 hours per week, as is standard under Federal and State Labor Laws.

Probation Period in Nevada

There is no specific state law governing probationary periods for employment. Employers may establish probation periods as part of their hiring policies.

Minimum Wage in Nevada

As of January 1, 2025, Nevada's flat minimum wage is:

• $12.00 per hour for all non‑exempt employees. This rate remains in place through 2025.
• Tip credits are not allowed, meaning if you employ tipped workers, you must always ensure they earn at least $12.00 per hour when combining wages and tips

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Read our Nevada average salary guide for more.

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Overtime in Nevada

Nevada’s overtime rules are a little different from many other states because they combine daily and weekly thresholds. In most cases, you must pay employees 1.5× their regular rate for:

• Over 40 hours in a workweek, or
• Over 8 hours in a workday,
  unless the employee works a four-day, 10-hour-per-day schedule (common in some industries).

Employees who earn less than 1.5× the minimum wage are always entitled to daily overtime after 8 hours, even if they’re on an alternative schedule. Employees that are exempt from overtime include certain executive, administrative, professional, and outside sales roles, provided they meet the state and federal exemption criteria. The federal weekly salary threshold for exemption is $684 ($35,568 annually).

Nevada Anti-Discrimination Laws

Nevada Equal Rights Commission (NERC) enforces state laws alongside the U.S. Equal Employment Opportunity Commission (EEOC), protecting you and your team from unfair treatment in employment, housing, and public accommodations.

In the workplace, employers may not discriminate based on:

• Race or color
• Religion
• National origin
• Sex, including pregnancy, childbirth, and related medical conditions
• Sexual orientation
• Gender identity or expression
• Age (40 and over)
• Disability
• Genetic information

Employer obligations include:

• Providing equal opportunities in hiring, pay, promotions, training, and termination
• Offering reasonable accommodations for qualified individuals with disabilities
• Providing reasonable accommodations for pregnancy, childbirth, and related medical conditions (unless this causes undue hardship)
• Avoiding retaliation against employees who file complaints or participate in investigations

Payroll Cycle in Nevada

Employers don’t deposit state income tax since Nevada has no personal income tax, but you’re responsible for employment-related taxes like Unemployment Insurance (UI) and the Modified Business Tax (MBT). These are based on employee wages and sometimes health benefits.

For federal payroll taxes, your deposit frequency (monthly or semi-weekly) is determined by your IRS lookback period. This evaluates your total liability over a defined past period to assign your deposit schedule.

• Typically, liabilities ≤ $50,000 mean monthly deposits; more than that generally require semi-weekly deposits.
• If you ever hit a $100,000 daily liability, a next-day deposit is required.

Types of Payroll Taxes in Nevada

While Nevada does not have a state income tax, your company is still responsible for several state-level payroll-related taxes and federal payroll obligations. Here’s a breakdown:

• Unemployment Insurance (UI): Paid by your company to the Nevada Department of Employment, Training and Rehabilitation (DETR) to fund unemployment benefits. Rates vary by your IRS designated business experience level but apply to wages up to the annual taxable wage base.
• Modified Business Tax (MBT): A state payroll tax on total gross wages minus certain health care deductions. Rates differ for general businesses and financial institutions.
• Federal Income Tax Withholding: Withheld from employee wages based on IRS Form W-4.
• Social Security Tax (FICA): 6.2% withheld from employees and matched by your company, up to the federal wage base.
• Medicare Tax (FICA): 1.45% withheld from employees and matched by your company, with an additional 0.9% withheld from high earners.
• Federal Unemployment Tax (FUTA): Paid by you at 6.0% on the first $7,000 of each employee’s wages (credit reductions may apply).

How to Comply with Nevada Payroll Taxes

Even without a state income tax, you need to make sure that your company is accurately calculating, paying, and reporting other required payroll-related taxes. Here’s how to stay compliant:

• Register with the State: Obtain an Employer Account Number from the Nevada DETR to report and pay UI and MBT.
• Pay Unemployment Insurance (UI): Calculate and remit UI taxes on wages up to Nevada’s annual taxable wage base. Your rate depends on your claims history.
• Pay the Modified Business Tax (MBT): Determine taxable wages, subtract allowable health care deductions, and apply the correct MBT rate for your business type.
• Withhold Federal Taxes: Withhold federal income tax, Social Security, and Medicare from employee wages, and match the employer portion for Social Security and Medicare.
• Deposit and File on Time: File and pay UI and MBT quarterly through the Nevada Tax Center or DETR’s online portal. Deposit withheld taxes through EFTPS based on your federal deposit schedule, and file quarterly using IRS Form 941.
• Maintain Accurate Records: Keep payroll and tax documentation for at least four years.
• Stay Updated: Monitor changes to federal tax rates, Nevada’s taxable wage base, and MBT rules to ensure ongoing compliance.

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Nevada. Understanding the tax obligations for both employers and employees is crucial when operating in Nevada's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Nevada. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

Employer Tax Contributions

Nevada employers pay a Modified Business Tax (1.475% on wages over $50,000 per quarter) and Unemployment Insurance (0.25% - 5.4%). Here's a quick summary of employer-specific payroll contributions:

Employee Payroll Tax Contributions

Employees in Nevada are not required to pay state income tax but contribute to federal Social Security and Medicare taxes. Here's a snapshot of what employee payroll tax contributions you need to be aware of:

Tax Due Dates in Nevada

Nevada is one of the few U.S. states that does not impose a personal income tax on individuals. This means that residents are not required to file a state income tax return. Nevada is one of the few U.S. states that does not impose a personal income tax on individuals. This means that residents are not required to file a state income tax return. 

How To Comply With Nevada Payroll Taxes

Nevada does not impose a state income tax. However, employers are required to pay the Modified Business Tax (MBT) at a rate of 1.475% on gross wages exceeding $50,000 per quarter. The Unemployment Insurance (UI) tax rate varies between 0.25% and 5.4% on the first $40,100 of wages. Quarterly reports must be filed using Form NUCS-4072.

Pension in Nevada

For private sector employees the Nevada Employee Savings Trust Program can be applied. This legislation was enacted to create a state-run retirement savings program for private-sector employees whose employers do not offer retirement plans. 

Nevada mandates workers' compensation insurance and paid leave for businesses with 50 or more employees. Employers must also comply with the federal Affordable Care Act (ACA).  Offering additional benefits like health insurance and vacation time is common practice.

Employee Benefits For Nevada

Competitive benefits are essential for attracting and retaining top talent in Nevada. 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 Nevada packages include:  

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

Are Employers Required To Provide Health Insurance in Nevada?

IIt is not mandatory for employers to provide health insurance. However, under the federal Affordable Care Act, larger employers with 50 or more full-time employees may face penalties if they do not offer coverage that meets minimum standards.

Do Part-Time Employees Get Benefits in Nevada?

Part-time employees are only entitled to certain benefits such as:

• unemployment benefits if they meet the required earnings and hours worked thresholds under Nevada law.
• All employees, including part-time workers, are entitled to workers' compensation coverage for work-related injuries or illnesses.
• Part time employees are eligible for paid leave if they meet the necessary requirements.
• Family and Medical Leave
• Part-time employees must receive Nevada's minimum wage of $12.00 per hour, regardless of benefits eligibility. They are also entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a week.

Are Employers Required To Offer 401k in Nevada?

Employers in Nevada are not required to offer a 401(k) plan or any other retirement savings plan under state or federal law.

Is Vacation Leave Mandatory in Nevada?

Under Nevada state law, your business doesn’t have to offer health insurance, but under the federal Affordable Care Act (ACA), companies with 50 or more full-time or equivalent employees must provide affordable coverage that meets minimum standards or risk federal penalties.

What Are Mandatory Leave Entitlements in Nevada?

Below are the mandatory leave entitlements for full-time employees in Nevada.

Paid Time Off in Nevada

Paid Time Off (PTO) policies are generally governed by state law, particularly through the Nevada Paid Leave Law and employer-established policies. With regards to the former, employees earn 0.01923 hours of paid leave for each hour worked, which amounts to approximately 40 hours of leave per year for a full-time employee. This leave applies to employers with 50 or more employees.

Maternity Leave In Nevada

Nevada requires private employers with 50 or more employees to provide paid leave that can be used for any purpose, including maternity leave. At least 0.01923 hours of paid leave for each hour worked, equating to approximately 40 hours per year for full-time employees. FMLA entitlements can also be used. 

Paternity Leave In Nevada

Nevada requires private employers with 50 or more employees to provide paid leave that can be used for any purpose, including maternity leave. At least 0.01923 hours of paid leave for each hour worked, equating to approximately 40 hours per year for full-time employees. FMLA entitlements can also be used. 

Sick Leave In Nevada

Employers with 50 or more employees in Nevada are required to provide employees with paid sick leave. Employees accrue at least 0.01923 hours of paid leave for every hour worked. Employees must have worked for at least 90 days to use accrued leave. FMLA entitlements can also be used. 

Military Leave in Nevada

Nevada has military leave policies designed to support employees who serve in the armed forces, ensuring they can fulfill their military duties without jeopardizing their civilian employment. These policies align with federal regulations and provide specific benefits for public employees.

Jury Duty in Nevada

Employers must grant employees unpaid leave to fulfill their jury duty obligations. Employees cannot be required to use vacation time, sick leave, or other paid leave balances to cover their absence unless they choose to do so.

Parental Leave In Nevada

Nevada requires private employers with 50 or more employees to provide paid leave that can be used for any purpose, including maternity leave. At least 0.01923 hours of paid leave for each hour worked, equating to approximately 40 hours per year for full-time employees. FMLA entitlements can also be used. 

Domestic Violence Leave in Nevada

Employees who are victims of domestic violence or sexual assault, or whose family or household members are victims, are entitled to 160 hours of leave within a 12-month period. This leave can be paid or unpaid, at the employer's discretion.

When it comes to terminating employment in Nevada, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in Nevada

Employment in Nevada is usually “at-will”. This means the employer or employee can terminate the employment relationship at any given time, for any legal reason, without having to provide notice.

Notice Period in Nevada

Nevada doesn’t have a state law requiring employers or employees to give notice before ending employment. This means that, under the state’s at-will employment rules, either party can terminate the employment relationship at any time, with or without notice, and for any lawful reason.

That said, you can choose, like many companies in the U.S., to set notice expectations, such as two weeks for voluntary resignations, through company policy or employment contracts to ensure smoother transitions and adequate staffing. If a notice period is written into an employment agreement, both parties are generally expected to honor it.

Severance in Nevada

Employers are not legally required to provide severance pay to departing employees. Severance packages are typically offered at the employer's discretion and are often outlined in employment contracts or company policies. Employers must however, provide final paychecks.