Effective July 1, 2023 the tax rate changes to 1.17% from 1.378%. There are no changes to the threshold of the sum of all taxable wages after deductions, currently at $50,000, or the Commerce Tax credit. On May 13, 2021, the Nevada Supreme Court upheld a decision that Senate Bill 551, which was passed during the 2019 Legislative Session, removing the biennial Modified Business Tax rate adjustment and repealing NRS 360.203 was unconstitutional.
About Nevada Modified Business Tax
Employers subject to Nevada state unemployment insurance under NRS 612 are also subject to file & pay Modified Business Tax (except for non-profit organizations, Indian tribes, political subdivisions and employers with only household employees.
The MBT is paid on total gross wages and taxable tips as reported quarterly to the Nevada Employment Security Division on Form NUCS 4072, less employee health benefits paid by the employer. For general businesses only, the first $50,000 of gross wages is not taxable.
When employers register with the Employment Security Division for state unemployment insurance, they are automatically registered with the Department for the MBT.
Contact Judy@choicebookkeepinglv.com for a consult on handling your payroll, payroll tax & ensuring Modified Business Tax compliance.