state of nevada department of taxation. modified business tax
TRANSCRIPT
STATE OF NEVADADEPARTMENT OF TAXATION
MODIFIED BUSINESS TAX
MODIFIED BUSINESS TAX
Business entities are subject to Modified Business Tax in one of two categories:
General – NRS 363B
Financial Institutions – NRS 363A
2011 Changes ~ Effective 7/1/11• Most tax rates administered by the
Department of Taxation that were scheduled to “sunset” on 6/30/11 have been extended to 6/30/2013 (AB 504)
• Interest rate on credit refunds reduced to .25 percent (AB 504)
• Interest rate on late taxes due reduced to .75 percent (AB 504)
• General Modified Business Tax for wages under $62,501 per quarter goes away (AB 561)
Who is required to be registered?
Any business who is required to pay a contribution pursuant to NRS 612.535
except………
Indian Tribe
Nonprofit organization under 26 U.S.C. 501(c)
Political subdivision NRS 363A.030
NRS 363B.030
MODIFIED BUSINESS TAX
What to report? Wages taken from Employment Security Department (ESD)
form NUCS 4072, line 3
What to deduct?
Deductions for employer-paid health insurance allowed
NRS 363A.130
NRS 363B.110
NRS 363A.135NRS 363B.115
MODIFIED BUSINESS TAX
Employer-paid insurance deduction includes:
1. Self-insured employer: all amounts paid for claims, premiums, stop-loss, if the program is a qualified employee welfare benefit plan
2. Premiums for a policy of health insurance for employees
3. Payments to a Taft-Hartley trust
NRS 363A.135
NRS 363B.115
MODIFIED BUSINESS TAX
Employer-paid insurance deduction DOES NOT include:
1. Amounts paid by the employee
2. Workmen’s compensation insurance
3. Life insurance
4. Disability
NRS 363A.135
NRS 363B.115
MODIFIED BUSINESS TAX
Categories and Rates (EFFECTIVE 7/1/2011)
General…………………• Taxable wages up to $62,500 in a calendar quarter
No tax…but a return MUST still be filed• Taxable wages over $62,500 in a calendar quarter
1.17%
(Effective 7/1/2011, and expires on 6/30/2013)
Financial………………… 2.00%AB 561 amending NRS
363A.050 and NRS 363A.130
NRS 363B.110
MODIFIED BUSINESS TAX
MODIFIED BUSINESS TAX
IMPORTANT: An updated
form for the 3rd quarter 2011 will be available in the near future.
IMPORTANT: The form shown here is effective for taxes due for the 2nd quarter
2011
How is my business classified?
NAICS code(North American Industry Classification System)
MODIFIED BUSINESS TAX
Your business is classified on its Federal Income Tax Return by this code
Wages
MODIFIED BUSINESS TAX
A: The wages you have reported to the Employment Security Department on
their form NUCS-4072, line 3, “Employer’s Quarterly Contribution and Wage Report”
What to report?
Health Benefit DeductionMODIFIED BUSINESS TAX
What to include?Any amount authorized by NRS 363B.115, paid by the employer for health insurance or a health benefit plan for its employees in the calendar quarter for which the tax is paid. The deduction may include:Amounts paid by a self-insured employer in a qualified employee welfare benefit plan for claims, direct administrative services, premiums or aggregate stop-loss insurance coverage Premiums for a policy of health insurance for employeesAmounts paid by an employer to a Taft-Hartley trust under 29 U.S.C. 186(c)(5)
Health Benefit Deduction
MODIFIED BUSINESS TAX
What NOT to include?Amounts paid for industrial injury or occupational disease insurancePayments made by the employee for health care/health insuranceAmounts deducted from the wages of employees for such health care or insuranceLife insurance
NRS 363B.115(2)
Returns, Penalties, Interest
MODIFIED BUSINESS TAX
• Returns are due by the last day of the month following the quarter in which the tax was due (NRS 363B.110, NRS 363A.130)
(example: quarter ended September 30, return is due by October 31)
• Up to 10% penalty if late (NRS 360.417)
• Interest calculated at .75%* per month on unpaid balance (NRS 360.417)
* Effective 7/1/2011 AB 504
MODIFIED BUSINESS TAX
Written Response
Most tax issues can be addressed by the Department of Taxation. Please be advised that any responses to inquires made to the Department are only binding if put in writing, such as Nevada Revised Statutes, Administrative Code, Nevada Tax Notes, or in written correspondence.
DEPARTMENT OF TAXATION Contact Information
Our offices are open Monday-Friday 8:00 AM – 5:00 PM
Southern Nevada:Grant Sawyer Office Building555 E. Washington AvenueSuite 1300Las Vegas, NV 89101 OR2550 Paseo Verde ParkwaySuite 180Henderson, NV 89074
Carson City:1550 College ParkwaySuite 115Carson City, NV 89706-7937
Reno:4600 Kietzke LaneBuilding L, Suite 235Reno, NV 89502
Contact our Call Center at1-866-962-3707
(closed during lunch)