Instructions
A penalty of $2 per statement, not to exceed $2,000, may be imposed
by DOR for failing to properly le the state copy of all federal
withholding forms on or before the due date of Form W-3N, or for
failing to e-le when ling more than 50 forms.
Specific Instructions
Lines 2 Through 5. Enter the total Nebraska income subject
to income tax withholding as shown on all federal income tax
witholding forms. When making entries on lines 2 through 5, only
include amounts once. These lines must be completed regardless
of the method used to le these forms (for example, actual forms,
e-ling, or combined federal/state ling).
Line 4. Enter any Nebraska income tax withholding shown on
Federal Forms 1099-R.
Line 5. Enter the amount of nonemployee compensation that was
subject to income tax withholding as nonresident personal service
payments shown on Federal Form 1099-NEC. The amount entered
should be the gross amount paid before deducting expenses. Also
include on this line any mandatory 5% income tax withholding by
construction contractors for payments made to subcontractors and
amounts reported on Forms 1099-MISC. Please refer to “Important
Information for Contractors Performing Construction Services in
Nebraska,” for moreinformation.
Line 8. Enter the total amount of tax incentive compensation credits
used against income tax withholding during this reporting year. If
DOR has preidentied an amount on this line, you must correct it
to reect any amount of incentive compensation credit taken on
your fourth quarter Form 941N. If the annual reconciliation of
your income tax withholding shows additional tax due, and you
wish to offset it with available tax incentive compensation credits,
also add this amount to line 8. Attach the Incentive Withholding
Worksheet which is available at revenue.nebraska.gov. Applicants
with signed ImagiNE Nebraska Act agreements must remit the
0.5% administration fee with a completed ImagiNE Nebraska Act
Payment of Fees for Incentive Credit Use, Form1107F.
Lines 9 Through 11. These amounts are the amounts of tax paid
on the quarterly returns received and processed by DOR. Do not
change any of these amounts without rst contacting DOR. These
amounts represent tax only and do not include any penalty or
interest paid. No payments of penalty and interest may be applied
to the tax due.
Line 12. Enter only the amount of tax paid on the Form 941N for
the tax period ending December 31. Annual lers should enter the tax
paid for the entire year. Do not include any penalty and interest paid
with your Form 941N.
Line 17. Any balance due of $2 or more must be paid.
Line 18. Any amount entered as an overpayment must be explained
in the space provided. As part of the explanation, include for each
quarter the total Nebraska income tax withheld and the total
income tax withholding paid to DOR.
An overpayment of $2 or more will be transferred to the next tax
year. DOR will verify the overpayment and the credit will show on
your Form 941N. Do not use the resulting credit until it appears on
the previous balance line of Form 941N.
An overpayment of $2 or more will be refunded if this is your nal
return or if you indicate in your explanation that the overpayment
exceeds the amount of tax you expect to owe next year.
Signatures. Form W-3N must be signed by the taxpayer, partner,
member, or corporate ofcer. If the taxpayer authorizes another
person to sign the form, there must be a power of attorney on le
with DOR.
Any person paid for preparing a taxpayer’s Form W-3N must also
sign the form as preparer.
Visit revenue.nebraska.gov, or call 800-742-7474 (NE and IA) or
402-471-5729.
Who Must File. Every employer or payor withholding Nebraska
income taxes from employees or payees must le a Nebraska
Reconciliation of Income Tax Withheld, Form W-3N. You must
apply for an income tax withholding number on a Nebraska Tax
Application, Form 20. You will be issued an income tax withholding
certicate by the Nebraska Department of Revenue (DOR).
If you are licensed for income tax withholding, you must le a
Form W-3N, even if no payments were made that were subject
to income tax withholding, or if the license was cancelled during
theyear.
When and Where to File. E-le or attach the Nebraska copies of
the following federal withholding forms for each employee or payee
who had Nebraska income tax withheld:
1. Wage and Tax Statement, Federal Form W-2;
2. Statement for Recipients of Certain Gambling Winnings,
Federal Form W-2G;
3. Distribution from Pensions, Annuities, Retirement, or Prot-
Sharing Plans, IRAs, Insurance Contracts, etc., Federal
Form1099-R; and
4. Statement for Recipients of Miscellaneous Income, Federal
Form 1099-MISC and Nonemployee Compensation, Federal
Form1099-NEC.
Employers ling more than 50 state copies of Forms W-2 and
1099 must e-le these forms. Please refer to revenue.nebraska.gov
for more information on e-ling. Form W-3N can be led using
DOR’s NebFile for Business lingprogram.
Form W-3N is due on or before January 31, following the close of
the tax year, along with payment of any amount shown on line 17. If
required, payment must be made by electronic funds transfer (EFT).
Do not send any other remittance with the Form W-3N. Checks
written to DOR may be presented for paymentelectronically.
Extension of Time. An extension of time to le Form W-3N
may be requested in writing and must be received by DOR by
January31. The request should include the employer’s or payor’s
Nebraska ID number and the period of time for which an extension
is requested. An extension may be granted for a period not to exceed
45 days from the original due date. Mail this request to: Nebraska
Department of Revenue, PO Box98915, Lincoln, NE 68509-8915.
Any extension granted does not extend the time allowed to submit
copies of federal income tax withholding forms to employees
or payees. The employee’s copy must be received by January 31
following the close of the calendar year. If employment is
terminated before the close of the year, then the employer must
provide the employee’s copy of the applicable form within 30 days
after the last payment.
Electronic Filing. Any taxpayer mandated to make the income tax
withholding payments electronically, must also le the Form 941N
and Form W-3N electronically. DOR will not mail Forms 941N or
W-3N to anyone required to pay electronically, or to anyone who
has e-led Forms 941N or W-3N in the past. DOR encourages all
employers to le and pay electronically. If you have questions about
electronic ling or payment options, visit revenue.nebraska.gov.
Preidentified Return. A preidentied return is a return that is
mailed to you by DOR. This return should be used only by the
taxpayer whose name is printed on it. Do not le returns that are
photocopies, are for another tax year, or have not been preidentied.
If you have not received a return for the tax year, and will be ling a
paper return, visit DOR’s website to print a Form W-3N. Complete
the ID number, tax year, name, and address information.
Penalty and Interest. Penalty and interest are imposed for failing
to timely remit income tax withheld. A 5% penalty plus interest are
due with this form if a balance due is shown on line 14 and is being
paid after the January 31 due date. Refer to Revenue Ruling99-20-2
and Regulation21-016 for additional information. If line 14 is zero
or a credit, do not compute lines 15 and 16. Interest is at the rate
shown on line 16.
