Section 363B.161 - Application by employer for designation as payroll provider; requirements for designation; revocation or cancellation of designation; commerce tax credit1. An employer may apply to the Department to be designated as a payroll provider by submitting to the Department such forms, application materials and supporting documents as the Department may require. 2. The Department shall designate an employer as a payroll provider if the employer demonstrates to the satisfaction of the Department that:(a) The employer is a member of an affiliated group which: (1) Provides payroll services for one or more members of the affiliated group;(2) Pays wages to employees who provide services on behalf of one or more members of the affiliated group; and (3) Reports and pays the tax imposed by NRS 363B.110, as amended by section 70 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2901, on wages paid to employees who provide services on behalf of one or more members of the affiliated group; and (b) Each member of the affiliated group for which a tax credit will be claimed pursuant to subsection 4 would have a liability for the tax imposed by NRS 363B.110, as amended by section 70 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2901, if the persons who provide services for that member were treated as employees of that member rather than as employees of the employer. 3. The Department may revoke or cancel the designation of an employer as a payroll provider if the employer no longer qualifies for that designation pursuant to subsection 2. The revocation or cancellation of the designation of an employer as a payroll provider does not preclude the Department from designating another employer as a payroll provider for the affiliated group if the other employer qualifies as a payroll provider pursuant to this section. 4. In reporting and computing the tax imposed by NRS 363B.110, as amended by section 70 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2901, a payroll provider may subtract from the amount calculated pursuant to subsection 1 of NRS 363B.110, as amended by section 70 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2901, a credit in an amount equal to 50 percent of the sum of the commerce tax paid by the payroll provider and the members of the affiliated group that would have been liable for the tax imposed by NRS 363B.110, as amended by section 70 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2901, if the persons who provide services for that member were treated as employees of that member rather than as employees of the payroll provider.5. As used in this section: (a) "Affiliated group" means a group of two or more business entities, each of which is controlled by one or more common owners or by one or more members of the group. (b) "Commerce tax" means the tax required to be paid pursuant to sections 2 to 61, inclusive, of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2878 (chapter 363C of NRS). (c) "Controlled by" means the direct or indirect ownership, control or possession of 50 percent or more of the ownership interest in a business entity. (d) "Payroll provider" means an employer who has been designated by the Department as a payroll provider pursuant to subsection 2.Nev. Admin. Code § 363B.161
Added to NAC by Tax Comm'n by R123-15, eff. 6/28/2016NRS 360.090, 363B.060, 363B.110