Important Information for Contractors
Performing Construction Services in Nebraska
Effective January 1, 2010
Contractor Registration | Frequently Asked Questions for Contractors
The Revenue Contractor Database is no longer available. Instead, contractors must use the Department of Labor's Contractor/Subcontractor Registration Application.
Efficiency and simplification is the goal of new legislation affecting contractors performing construction services (contractors) in Nebraska.
Legislation passed in 2009 (LB 162) made several changes affecting contractors. The biggest change is that, effective January 1, 2010, the Department of Labor and the Department of Revenue combined their separate contractor registration databases into a new Contractor Registration Database (Database). The Department of Labor manages this new Database.
- All contractors in Nebraska are required to be registered on the new Database. The Nebraska Revenue Contractor Database and Election, Form 16, will no longer be used or accepted.
- All contractors making payments to another contractor (subcontractor) who is NOT listed on the new Database are required to withhold and remit 5% of all payments made to the nonregistered subcontractor.
- The new Database contains information that meets the contractor registration requirements for both the Departments of Labor and Revenue.
How to Register:
- If you were registered on both databases:
You do not need to do anything. Your current registration information from both of the old databases will automatically be included in the new Database. You will not have to re-register with Labor until your current registration expires. A renewal Contractor/Subcontractor Registration Application will be mailed to you approximately 30 days prior to the expiration of your current registration.
- If you were registered ONLY on Revenue’s Contractor Database:
Complete and submit a Contractor/Subcontractor Registration Application to the Department of Labor. All applicable fees and documents will need to be submitted with this application. This Application should be submitted prior to receiving payment for performing construction services to avoid the 5% withholding that would otherwise be required on any payments made to a contractor that is not registered on the new Database.
- If you were registered ONLY on Labor’s Contractor Database:
Go to the Contractor/Subcontractor Registration Application, and click on the “Change Contractor Option” link. You may add a contractor option if one has not been elected, or change a previous election. It is important that the Contractor Option election is updated on the new Database as soon as possible. If you do not know your contractor option, contact the Department of Revenue for assistance. The Nebraska Revenue Contractor Database and Election, Form 16, will no longer be used or accepted after December 31, 2009.
- If you were not registered on either database:
Complete the Contractor/Subcontractor Registration Application and submit it with the applicable fees and documents to the Department of Labor.
IMPORTANT NOTE: This new Database does NOT replace the requirements to file for other applicable programs, including, but not limited to, sales and consumer’s use tax, withholding tax, unemployment insurance, or worker’s compensation. Contact the appropriate agency for information on these requirements.
Important Changes for Nonresident Contractors
- The Department of Labor’s Contractor/Subcontractor Registration Application results in the elimination of the following Department of Revenue forms:
- Form 24 – Nebraska Registration Application for Nonresident Contractor;
- Form 24A – Nebraska Contract Permit Application for Nonresident Contractor;
- Form 24B – Nebraska Tax Bond for Nonresident Contractor’s and Subcontractor’s Construction Contracts; and
- Form 24C – Nebraska Bond or Alternative Security Clearance Request for Nonresident Contractors and Nonresident Subcontractors. *
*Existing Form 24C will continue to be used until any currently registered projects are completed and the Clearance request is submitted.
- All nonresident contractors must still pay the $25 business registration fee and $25 project permit fee for each construction project they perform in Nebraska. These fees are in addition to the annual $40 registration fee paid to the Department of Labor. These fees are all paid when filing the Contractor/Subcontractor Registration Application with the Department of Labor.
- Construction projects in Nebraska performed by nonresident contractors on and after January 1, 2010, are no longer required to be covered by tax bonds or alternative security.
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