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.
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State-specific details
State exam facts
- State regulator
- Nevada State Contractors Board (NSCB)
- Prelicensing education
- Four years of relevant experience within the last fifteen years
- Passing score
- 75%
- Scored questions
- 60
- Time limit
- 120 minutes
Does Nevada require a state contractor license?
Yes. The Nevada State Contractors Board (NSCB) licenses contractors under NRS/NAC Chapter 624, using Class A (Engineering), Class B (Building), and Class C (specialty). The Board sets a monetary limit on each license, and the financial statement an applicant files depends on the limit sought (NAC 624.593): for $1,000,000 or more it must be reviewed or audited by a CPA.
What is on the Nevada Contractor Management Survey (CMS) exam?
The CMS Business & Law exam has 60 scored questions plus 3 unscored, runs 120 minutes plus 6 for the unscored questions, and requires 45 correct (75%) to pass. It is open book, and the only reference allowed is the Construction Business and Law Manual for Nevada. Applicants must show four years of relevant experience within the last fifteen years. A separate trade exam for the license classification is also required.
How does Nevada protect residential customers?
Nevada maintains a Residential Recovery Fund, and under NRS 108.245 a Notice of Right to Lien may be given at any time after first furnishing, but the lien then reaches only the 31 days before the notice and what follows. Nevada has no personal or corporate income tax but does impose the Modified Business Tax.
Sources: https://www.nvcontractorsboard.com, https://test-takers.psiexams.com/api/content/bulletin/296
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