Nebraska PEO Laws: Registration, Bonding and Payroll Requirements
Nebraska PEOs must register with the Department of Labor under the Employee Leasing Company Registration Act, with a $25,000 bond; registrations expire December 31. The 2026 SUI wage base is $9,000 ($24,000 construction); new employers pay 1.25% (5.40% construction). Minimum wage $15.00; paid sick leave began October 1, 2025.
| PEO registration or licensing required | Yes - any person or entity providing employee leasing services in Nebraska must be registered with the Nebraska Department of Labor under the Employee Leasing Company Registration Act (Neb. Rev. Stat. 48-2101 to 48-2111); the registration fee is $100 and registrations are accepted on a continuous basis source (opens in new window) |
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| Regulating agency | Nebraska Department of Labor (NDOL) - administers employee leasing company registration; NDOL's UI Tax division administers unemployment insurance source (opens in new window) |
| Bond or security requirement | $25,000 - a bond or other security acceptable to the Department, payable to the State of Nebraska, maintained at all times during the registration period and providing recovery for claims covered by the act (Neb. Rev. Stat. 48-2105) source (opens in new window) |
| Registration renewal cycle | Annual - a registration expires on December 31 following the date of issuance; a renewal application must be filed before the registration expires (Neb. Rev. Stat. 48-2104) source (opens in new window) |
| SUI taxable wage base | $9,000 standard taxable wage base; $24,000 for employers in UI Tax Category 20 (2026, per LB 428 which amended Neb. Rev. Stat. 48-648 and 48-649 to 48-649.04) source (opens in new window) |
| New-employer SUI rate | 1.25% for new non-construction employers; 5.40% for new construction employers (2026) source (opens in new window) |
| State workers' comp fund | No - coverage is purchased from private insurance carriers; Nebraska does not operate a state fund, and professional employer organizations may not self-insure (Neb. Rev. Stat. 48-145) source (opens in new window) |
| State paid leave mandate | Yes - paid sick leave under Initiative 436, effective October 1, 2025: employees accrue 1 hour of paid sick leave per 30 hours worked, capped at 40 hours per year for employers with under 15 employees and 64 hours for employers with 15 or more source (opens in new window) |
| State minimum wage | $15.00 per hour (effective January 1, 2026, under the Initiative 433 schedule; adjusted for CPI-U thereafter) source (opens in new window) |
| PEO SUI reporting basis | Client-level default - wages for leased employees are reported and taxed under the client's account unless the employee leasing company is registered with NDOL under the Employee Leasing Company Registration Act and has been issued its own Nebraska UI account number; if separately registered, the leasing company reports and pays on the leased employees' wages source (opens in new window) |
Sources
- NDOL - Professional Employer Organizations: registration required under the Employee Leasing Company Registration Act (Neb. Rev. Stat. 48-2101 to 48-2111); $100 fee — verified 2026-08-12
- NDOL - PEO registrations administered by the Nebraska Department of Labor — verified 2026-08-12
- Neb. Rev. Stat. 48-2105 - $25,000 bond or other security acceptable to the Department, payable to the State of Nebraska, maintained during the registration period — verified 2026-08-12
- Neb. Rev. Stat. 48-2104 - registration expires December 31 following issuance; renewal application filed before expiration — verified 2026-08-12
- NDOL - UI Combined Tax Rates 2026: $9,000 standard wage base, $24,000 for UI Tax Category 20 (LB 428) — verified 2026-08-12
- NDOL - UI Combined Tax Rates 2026: new employer 1.25% non-construction / 5.40% construction — verified 2026-08-12
- Neb. Rev. Stat. 48-145 - employers must insure with licensed carriers or self-insure with commission approval; PEOs may not self-insure — verified 2026-08-12
- NDOL - Paid Sick Leave (Initiative 436), effective October 1, 2025: 1 hour per 30 hours worked with 40/64-hour annual caps — verified 2026-08-12
- NDOL - Labor Standards: minimum wage $15.00 effective January 1, 2026 (Initiative 433 schedule) — verified 2026-08-12
- Nebraska UI Employer Handbook - leased employees reported under the client's account unless the leasing company is registered and holds its own Nebraska UI account — verified 2026-08-12
What we know about Nebraska
Nebraska regulates PEOs through a dedicated statute - the Employee Leasing Company Registration Act, Neb. Rev. Stat. 48-2101 to 48-2111 - enforced by the Department of Labor. NDOL's PEO page states that any person or entity providing employee leasing services in the state must be registered with the department, that registrations are accepted on a continuous basis, and that a $100 registration fee applies. The act's financial requirement, set out in Neb. Rev. Stat. 48-2105, is a $25,000 bond or other security acceptable to the department, made payable to the State of Nebraska and maintained at all times during the registration period, providing recovery for claims against the leasing company covered by the act. Renewals run on a fixed calendar: Neb. Rev. Stat. 48-2104 makes a registration expire on December 31 following the date of issuance, so every Nebraska registration - whenever issued - rolls over on the same December 31 deadline.
Nebraska's 2026 unemployment numbers are confirmed on NDOL's Combined Tax Rates page. The taxable wage base is $9,000 for most employers but $24,000 for employers in UI Tax Category 20, a two-tier structure created by LB 428, which amended Neb. Rev. Stat. 48-648 and 48-649 through 48-649.04 - the construction-heavy category carries the higher base. New employer rates for 2026 are 1.25 percent for non-construction and 5.40 percent for construction. That category-20 differential is a uniquely Nebraska feature in this batch: the same workforce can cost either $9,000 or $24,000 per employee depending on the employer's tax category, which changes the year-one math for a PEO with construction clients.
On UI reporting, Nebraska defaults to the client's account. NDOL's UI Employer Handbook explains that wages for leased employees are reported and taxed under the client's account unless the employee leasing company is registered with the department under the registration act and holds its own Nebraska UI account number; a separately registered leasing company then reports and pays on the leased employees' wages itself. The registration program and the UI account are thus two separate decisions for a provider.
Labor standards in Nebraska are high-floor for this batch: the minimum wage is $15.00 per hour effective January 1, 2026 under the Initiative 433 schedule, and paid sick leave took effect October 1, 2025 under Initiative 436 - one hour per 30 hours worked, capped at 40 hours per year for employers with fewer than 15 employees and 64 hours for larger employers. Workers' compensation is a private market with no state fund, and Neb. Rev. Stat. 48-145 adds a PEO-specific restriction: professional employer organizations may not self-insure, so coverage must come from licensed carriers through master or coordinated policies. The October 1, 2025 sick leave start date and the December 31 registration expiry anchor the state's compliance calendar around the calendar year for providers and their clients alike.
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