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Presentation on theme: "STATE OF NEVADA DEPARTMENT OF TAXATION. MODIFIED BUSINESS TAX."— Presentation transcript:



3 Business entities are subject to Modified Business Tax in one of two categories: General – NRS 363B Financial Institutions – NRS 363A

4 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)

5 Who is required to be registered? Any business who is required to pay a contribution pursuant to NRS except ……… Indian Tribe Nonprofit organization under 26 U.S.C. 501(c) Political subdivision NRS 363A.030 NRS 363B.030 MODIFIED BUSINESS TAX

6 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.135 NRS 363B.115 MODIFIED BUSINESS TAX

7 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

8 Employer-paid insurance deduction DOES NOT include: 1.Amounts paid by the employee 2.Workmens compensation insurance 3.Life insurance 4.Disability NRS 363A.135 NRS 363B.115 MODIFIED BUSINESS TAX

9 Categories and Rates ( EFFECTIVE 7/1/2011) General………………… Taxable wages up to $62,500 in a calendar quarter No t ax …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

10 IMPORTANT : An updated form for the 3 rd quarter 2011 will be available in the near future. IMPORTANT : The form shown here is effective for taxes due for the 2 nd quarter 2011

11 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

12 Wages MODIFIED BUSINESS TAX A: The wages you have reported to the Employment Security Department on their form NUCS-4072, line 3, Employers Quarterly Contribution and Wage Report What to report?

13 Health Benefit Deduction MODIFIED 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 employees Amounts paid by an employer to a Taft-Hartley trust under 29 U.S.C. 186(c)(5)

14 Health Benefit Deduction MODIFIED BUSINESS TAX What NOT to include? Amounts paid for industrial injury or occupational disease insurance Payments made by the employee for health care/health insurance Amounts deducted from the wages of employees for such health care or insurance Life insurance NRS 363B.115(2)

15 Returns, Penalties, Interest MODIFIED BUSINESS TAX

16 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 ) Interest calculated at.75%* per month on unpaid balance (NRS ) * Effective 7/1/2011 AB 504 MODIFIED BUSINESS TAX

17 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.

18 DEPARTMENT OF TAXATION Contact Information Our offices are open Monday-Friday 8:00 AM – 5:00 PM Southern Nevada: Grant Sawyer Office Building 555 E. Washington Avenue Suite 1300 Las Vegas, NV OR 2550 Paseo Verde Parkway Suite 180 Henderson, NV Carson City: 1550 College Parkway Suite 115 Carson City, NV Reno: 4600 Kietzke Lane Building L, Suite 235 Reno, NV Contact our Call Center at ( closed during lunch )


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