Security Contractor Package - Nebraska 2025

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The Nebraska Contractor Registration Act requires contractors and subcontractors doing business in Nebraska to register with the Nebraska Department of Labor. While the registration is a requirement, it does not ensure quality of work or protect against fraud.
Option 3 contractors can continue to purchase building materials and fixtures tax-free by giving a properly completed Nebraska Resale or Exempt Sale Certificate, Form 13, Section C, Block 1, to the supplier. Option 3 contractors will continue to remit use tax on building materials and fixtures withdrawn from inventory.
A contractor who elects Option 2 is the consumer of building materials and fixtures purchased and annexed to real estate. ✔ Collect and remit the Nebraska and local sales tax on over-the-counter sales and charges for taxable services.
Payment Method: Employees are typically paid by the hour or salary, whereas independent contractors are usually paid per job or project. Provision of Tools: Employees generally use tools and equipment provided by the employer, while independent contractors use their own.
Significant presence or nexus is defined as having a physical presence (ex: brick and mortar store, employee, or inventory in a fulfillment center like FBA) and may also include economic activity in a state as well. Nebraska has expanded their nexus laws to include both physical and economic activity.
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A contractor is a person or company that obtains contracts directly from customers and carries them out, while a subcontractor forms agreements with contractors to perform specific tasks within a larger project.

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