SB 1392 Summary

• Allows employees to elect to make quarterly estimated tax payments in lieu of employer withholding under section 43-401, subsection J, provided they file notice with both employer and department at least 60 days before the taxable year begins.

• Upon receiving employee election notice and department confirmation, employers must cease withholding taxes from the employee's wages and the employee becomes solely responsible for all tax payments.

• Establishes a new option in section 43-581, subsection B allowing individuals to make quarterly estimated tax payments based on a percentage of federal taxes withheld from their compensation as an alternative to employer withholding.

• Requires employers to provide elected employees with annual statements of wages paid within 30 days of year-end or 15 days after employment termination for employees who elect quarterly payment arrangements.

• Clarifies that quarterly estimated tax payments must total at least 90 percent of the current year's tax liability or 100 percent of the prior year's tax liability, consistent with existing estimated payment requirements.