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.
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
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 monetary limit is tied to the financial statement, with a reviewed or audited CPA statement required for limits of $1,000,000 or more.
What is on the Nevada Construction Management Survey (CMS) exam?
The CMS Business & Law exam has 60 scored questions and requires 45 correct (75%) to pass; it is open book. Applicants must show four years of relevant experience within the last fifteen years. NASCLA is not accepted in Nevada.
How does Nevada protect residential customers?
Nevada maintains a Residential Recovery Fund, and lien law (NRS 108) requires a Notice of Right to Lien within 31 days. Nevada has no personal or corporate income tax but does impose the Modified Business Tax.
Sources: https://www.nvcontractorsboard.com