Chapter 13 of 188% of exam
Nevada Taxes & Payroll
Nevada has no income tax but does tax payroll, and federal payroll taxes still apply to every crew. This chapter covers Nevada's state taxes and the employer's FICA obligation.
No income tax, but a Modified Business Tax
Nevada has no personal or corporate income tax. It does impose a Modified Business Tax on wages (a payroll-based tax) and a Commerce Tax on large gross revenues, so a contractor still has state tax obligations to plan for even without an income tax.
The employer's FICA share
Separate from what is withheld from the worker, the employer must match the employee's FICA - 6.2% Social Security plus 1.45% Medicare, or 7.65% total - on wages below the Social Security wage base. On $3,000 of wages that is 7.65% x $3,000 = $229.50, with the employee paying another $229.50 for 15.3% combined.