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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1173
Introduced by Kauth, 31.
Read first time January 21, 2026
Committee: Business and Labor
A BILL FOR AN ACT relating to labor; to amend sections 48-1706, 48-2710,1
and 81-406, Reissue Revised Statutes of Nebraska, section 48-2107,2
Revised Statutes Cumulative Supplement, 2024, and section 48-648,3
Revised Statutes Supplement, 2025; to rename the Contractor and4
Professional Employer Organization Registration Cash Fund and change5
permitted uses of the fund; to provide for an annual filing fee for6
employers submitting reports under the Employment Security Law; to7
eliminate obsolete provisions; to harmonize provisions; and to8
repeal the original sections. 9
Be it enacted by the people of the State of Nebraska,10
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Section 1. Section 48-648, Revised Statutes Supplement, 2025, is1
amended to read: 2
48-648 (1) With respect to wages for employment, combined tax shall3
accrue and become payable by each employer not otherwise entitled to make4
payments in lieu of contributions for each calendar year in which he or5
she is subject to the Employment Security Law. Such combined tax shall6
become due and be paid by each employer to the commissioner for the7
Workforce Development Program Cash Fund and the Unemployment Trust Fund8
in such manner and at such times as the commissioner may, by rule and9
regulation, prescribe. Such combined tax shall not be deducted, in whole10
or in part, from the wages of individuals in such employer's employ.11
(2) The commissioner may require any employer whose annual payroll12
for either of the two preceding calendar years has equaled or exceeded13
one hundred thousand dollars to file combined tax returns and pay14
combined taxes owed by an electronic method approved by the commissioner,15
except when the employer establishes to the satisfaction of the16
commissioner that filing the combined tax return or payment of the tax by17
an electronic method would create a hardship for the employer.18
(3) In the payment of any combined tax, a fractional part of a cent19
shall be disregarded unless it amounts to one-half cent or more, in which20
case it shall be increased to one cent. If the combined tax due for any21
reporting period is less than five dollars, the employer need not remit22
the combined tax. 23
(4) If two or more related corporations or limited liability24
companies concurrently employ the same individual and compensate such25
individual through a common paymaster which is one of such corporations26
or limited liability companies, each such corporation or limited27
liability company shall be considered to have paid as remuneration to28
such individual only the amounts actually disbursed by it to such29
individual and shall not be considered to have paid as remuneration to30
such individual amounts actually disbursed to such individual by another31
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of such corporations or limited liability companies. An employee of a1
wholly owned subsidiary shall be considered to be concurrently employed2
by the parent corporation, company, or other entity and the wholly owned3
subsidiary whether or not both companies separately provide remuneration.4
(5) The professional employer organization shall report and pay5
combined tax, penalties, and interest owed for wages earned by worksite6
employees under the client's employer account number using the client's7
combined tax rate. The client is liable for the payment of unpaid8
combined tax, penalties, and interest owed for wages paid to worksite9
employees, and the worksite employees shall be considered employees of10
the client for purposes of the Employment Security Law.11
(6) The Commissioner of Labor may require by rule and regulation12
that each employer subject to the Employment Security Law shall submit to13
the commissioner quarterly wage reports on such forms and in such manner14
as the commissioner may prescribe. The commissioner may require by rule15
and regulation an annual filing fee for such reports in an amount not to16
exceed two hundred fifty dollars. The commissioner shall remit such fees17
to the State Treasurer for credit to the Contractor, Business, and18
Professional Employer Organization Registration Cash Fund. The19
commissioner may require any employer whose annual payroll for either of20
the two preceding calendar years has equaled or exceeded one hundred21
thousand dollars to file wage reports by an electronic method approved by22
the commissioner, except when the employer establishes to the23
satisfaction of the commissioner that filing by an electronic method24
would create a hardship for the employer. The quarterly wage reports25
shall be used by the commissioner to make monetary determinations of26
claims for benefits. 27
Sec. 2. Section 48-1706, Reissue Revised Statutes of Nebraska, is28
amended to read: 29
48-1706 Each application shall be accompanied by a fee. The30
Commissioner of Labor shall establish the amount of the fee, which shall31
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not exceed seven hundred fifty dollars, by rule and regulation. The fee1
shall be established with due regard for the costs of administering the2
Farm Labor Contractors Act. All fees so collected shall be deposited in3
the Contractor , Business, and Professional Employer Organization4
Registration Cash Fund. 5
Sec. 3. Section 48-2107, Revised Statutes Cumulative Supplement,6
2024, is amended to read: 7
48-2107 (1) Each application or renewal under section 48-2105 shall8
be signed by the applicant and accompanied by a fee not to exceed forty9
dollars. The commissioner may adopt and promulgate rules and regulations10
to establish the criteria for acceptability of filing documents and11
making payments electronically. The criteria may include requirements for12
electronic signatures. The commissioner may refuse to accept any13
electronic filings or payments that do not meet the criteria established.14
The fee shall not be required when an amendment to an application is15
submitted. The commissioner shall remit the fees collected under this16
subsection to the State Treasurer for credit to the Contractor, Business,17
and Professional Employer Organization Registration Cash Fund.18
(2) A contractor shall not be required to pay the fee under19
subsection (1) of this section if (a) the contractor is self-employed and20
does not pay more than three thousand dollars annually to employ other21
persons in the business and the application contains a statement made22
under oath or equivalent affirmation setting forth such information or23
(b) the contractor only engages in the construction of water wells or24
installation of septic systems. At any time that a contractor no longer25
qualifies for exemption from the fee, the fee shall be paid to the26
department. Any false statement made under subdivision (2)(a) of this27
section shall be a violation of section 28-915.01.28
Sec. 4. Section 48-2710, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
48-2710 (1) The department shall adopt a schedule of fees for31
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initial registration, annual registration renewal, and limited1
registration, not to exceed two thousand five hundred dollars for initial2
registration, one thousand five hundred dollars for annual registration3
renewal, and one thousand dollars for limited registration. Such fees4
shall not exceed those reasonably necessary for the administration of the5
Professional Employer Organization Registration Act.6
(2) Fees imposed pursuant to this section shall be remitted to the7
State Treasurer for credit to the Contractor , Business, and Professional8
Employer Organization Registration Cash Fund. 9
Sec. 5. Section 81-406, Reissue Revised Statutes of Nebraska, is10
amended to read: 11
81-406 (1) The Contractor , Business, and Professional Employer12
Organization Registration Cash Fund is created. The fund shall be13
administered by the Department of Labor and shall consist of fees14
collected by the department pursuant to the Farm Labor Contractors Act,15
the Contractor Registration Act, and the Professional Employer16
Organization Registration Act and section 48-648 and such sums as are17
appropriated to the fund by the Legislature. 18
(2) The fund shall be used for: 19
(a) Enforcing enforcing and administering: 20
(i) The Employment Security Law; 21
(ii) The the Farm Labor Contractors Act; 22
(iii) The , the Contractor Registration Act; 23
(iv) The , the Employee Classification Act; 24
(v) The , and the Professional Employer Organization Registration25
Act; . 26
(vi) The Non-English-Speaking Workers Protection Act;27
(vii) The Wage and Hour Act; 28
(viii) The Nebraska Wage Payment and Collection Act;29
(ix) The Nebraska Healthy Families and Workplaces Act;30
(x) The child labor provisions found in sections 48-302 to 48-313;31
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(xi) The veterans preference provisions found in sections 48-225 to1
48-231 and section 48-238; 2
(xii) The military employment provisions found in sections 55-160 to3
55-166; and 4
(xiii) The onsite safety and health consultation program provided to5
private sector employers under 29 C.F.R. part 1908;6
(b) Any other purposes related to the proper administration of7
programs under the Department of Labor, as determined by the Commissioner8
of Labor; and 9
(c) Workforce development grants to be used in accordance with10
subsection (2) of section 81-407. No transfer from the Contractor,11
Business, and Professional Employer Organization Registration Cash Fund12
shall be made to the Workforce Development Program Cash Fund for this13
purpose except on written authorization by the Governor at the request of14
the Commissioner of Labor. 15
(3) Any money in the fund available for investment shall be invested16
by the state investment officer pursuant to the Nebraska Capital17
Expansion Act and the Nebraska State Funds Investment Act. Money in the18
Contractor, Business, and Professional Employer Organization Registration19
Cash Fund may be transferred to the General Fund at the direction of the20
Legislature. 21
The State Treasurer shall transfer one million seven hundred22
thousand dollars from the Contractor and Professional Employer23
Organization Registration Cash Fund to the General Fund on or before June24
15, 2018, on such dates and in such amounts as directed by the budget25
administrator of the budget division of the Department of Administrative26
Services. 27
Sec. 6. Original sections 48-1706, 48-2710, and 81-406, Reissue28
Revised Statutes of Nebraska, section 48-2107, Revised Statutes29
Cumulative Supplement, 2024, and section 48-648, Revised Statutes30
Supplement, 2025, are repealed. 31
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