Footnotes 1 Delaware, New York, and Pennsylvania also apply convenience of the employer rules. Arkansas had historically applied such a rule but overturned such rule in April 2021. See Ark. Code § 26-51-202(c). Connecticut, Massachusetts, and New Jersey each apply a version of a convenience of the employer rule, either on a temporary or situational basis, such as when another state applies it (Connecticut and New Jersey) or when the remote work is a result of the COVID-19 pandemic (Massachusetts). 2 See Neb. Rev. Stat. § 77-2715(1); 316 Neb. Admin. Code § 22-003.01C(1). 3 Zelinsky v. Tax Appeals Tribunal of State, 1 N.Y.3d 85, 801 N.E.2d 840 (2003). 4 https://www.supremecourt.gov/docket/docketfiles/ html/public/22o154.html 5 Neb. Rev. Stat. § 77-2753. 6 Neb. Rev. Stat. § 77-2733(8)(c) (emphasis added). 7 Neb. Dept. of Rev., 2025 Neb. Circular EN, 6 (Nov. 2024) https://revenue.nebraska.gov/sites/default/ files/doc/business/Cir_En_2024/2025cir_en_ whole.pdf. This bill provides welcome relief to Nebraska employers who have been grappling with the Convenience of the Employer Rule’s broad application, particularly in light of the increase in popularity of remote work since the COVID-19 pandemic. Not only does this impact an employer’s withholding obligation, but it encourages businesses to make Nebraska their home. Practitioners should become familiar with both the historical and current application of Nebraska’s Convenience of the Employer Rule, as well as how it interacts with other states’ laws, to ensure their employer clients withhold properly. Hannah Fischer Frey is a partner at Baird Holm law firm, focusing on corporate transactions, federal and state tax planning issues, and tax-exempt matters. Fischer Frey has addressed complex partnership and corporate tax issues, including business reorganizations, private equity fund structuring, business succession planning, and tax planning in mergers and acquisitions. She has been closely involved in numerous federal and state tax examinations and audits. Morgan Kreiser is also a partner at Baird Holm, representing employers in all aspects of employee benefits and executive compensation compliance matters, including ERISA compliance, qualified retirement plans, nonqualified deferred compensation arrangements, equity compensation incentives, public employer retirement systems, and health and welfare benefits. Carrie Schwab is an associate at the firm, focusing on general corporate matters as well as tax law and employee compensation and benefits. She assists businesses of all sizes on a variety of matters, including entity formation, corporate governance, general tax strategy and planning, ERISA compliance and employee benefit programs, and equity compensation incentives. For more information, call (402) 344-0500 or email hfrey@bairdholm.com, mkreiser@bairdholm.com, or cschwab@bairdholm.com. 17 nescpa.org
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