To apply for an Employer Identification Number (EIN) in Nebraska, submit Form SS-4 online, by mail or fax. Businesses can also authorize a third party to apply on their behalf. Register online with the Nebraska Department of Labor (DOL) to obtain an Insurance Tax Account Number and rate within 7 days.
Business Tax Registration in Nebraska
Most businesses starting in Nebraska need to register for an EIN and Nebraska state tax ID numbers to pay various taxes and withhold taxes from employee wages. An EIN is assigned immediately upon validation of the application and does not expire. An EIN is sometimes referred to as a Federal Employer Identification Number or Federal Tax ID Number. Obtaining an EIN is free in Nebraska and all states.
You can register online for a Nebraska Tax ID Number from the Department of Revenue. This ID number uniquely identifies businesses filing returns in Nebraska. You do not need this to get an LLC’s EIN. There is no fee to register.
Importance of EIN and Tax ID Numbers
The IRS uses an EIN to identify businesses like Nebraska LLCs for tax purposes, akin to how Social Security Numbers identify individuals. If your LLC has over one member or employees, you likely need an EIN. EINs are free and provided online in around 5 minutes compared to 4 weeks via mail.
EINs help the IRS track businesses and are essential for opening a bank account, filing taxes, and other crucial business functions. Before establishing a Nebraska LLC, ensure you have an EIN and Tax ID Number.
Payroll Tax Registration and Unemployment Insurance in Nebraska
Nebraska requires payroll tax registration with the Revenue and Labor Departments. Online registration is available, and existing numbers can be obtained by calling. The Labor Department provides unemployment insurance rates, with benefits covering 50% of weekly wages up to $456 for 26 weeks in 2021. Eligibility and payment are typically determined within 2-3 days of filing weekly claims. The state’s low unemployment rate can be attributed, in part, to a smaller workforce post-pandemic.