Section 316-24-373 - PAYROLL FACTOR; NUMERATOR AND DENOMINATOR373.01 Numerator The numerator of the payroll factor is the total compensation paid to employees in Nebraska during the tax period.
373.01A If compensation paid to employees is included in the payroll factor using the cash method of accounting, or if the taxpayer is required to report compensation under the cash method of accounting for unemployment compensation purposes, it is presumed that the total wages reported to Nebraska for unemployment compensation purposes is also compensation paid in Nebraska, except as provided in Reg-24-373.01B below.373.01B The presumption may be overcome by satisfactory evidence that an employee's compensation is not properly reportable to Nebraska for unemployment compensation purposes.373.02 Compensation Paid in Nebraska Compensation is paid to employees in Nebraska when, applied consecutively, any of the following tests are met:
373.02A The employee's service is performed entirely within Nebraska;373.02B The employee's service is performed both within and outside Nebraska, but the service performed outside Nebraska is incidental to the employee's service within Nebraska. Any service which is temporary or transitory in nature, or which is rendered in connection with an isolated transaction, is incidental;373.02C If the employee's services are performed both within and outside Nebraska, the employee's compensation will be considered compensation paid to employees in Nebraska if- 373.02C(1) The employee's base of operations is in Nebraska; 373.02C(2) There is no base of operations in any state in which some part of the service is performed, but the place where the service is directed or controlled is in Nebraska; or373.02C(3) The base of operations or the place from which the service is directed or controlled is not in any state where some part of the service is performed but the employee's residence is in Nebraska. 373.02D The base of operations is the location from which the employee customarily starts working and to which the employee customarily returns in order to receive instructions from the employer, receive communications from his or her customers or other persons, replenish stock or other materials, repair equipment, or perform any other functions necessary to the exercise of his or her trade or profession.373.02E The place from which the service is directed or controlled is the location from which the power to direct or control the service is exercised by the employer.373.03 Denominator The denominator of the payroll factor is the total compensation paid to employees everywhere during the tax period. Compensation paid to employees whose services are performed entirely in a state where the taxpayer is immune, for example, under 15 U.S.C. §§ 381- 385, are included in the denominator of the payroll factor.
316 Neb. Admin. Code, ch. 24, § 373
Neb. Rev. Stat. § 77-3734.13. _____ .