Employers coming from California are often surprised by how different the benefits landscape is in Nevada — fewer state mandates, no state income tax, and a payroll tax instead.
No state income tax — but a payroll tax
Nevada has no personal income tax, so there is no state income-tax withholding (federal only). Employers instead owe the Modified Business Tax (NRS 363B) and unemployment insurance.
No state SDI/PFL, no auto-IRA mandate
Unlike California, Nevada has no state disability or paid-family-leave insurance (no SDI/PFL) and no state auto-IRA retirement mandate (no CalSavers equivalent). Retirement plans (401(k), etc.) are governed by federal ERISA and the tax code.
Health-plan continuation
Group health plans run on the federal framework — ERISA, the ACA employer mandate, and COBRA (employers normally employing 20+ in the preceding calendar year). Nevada provides continuation/conversion rights only where a current statute provides them. Nevada no longer has a mini-COBRA. NRS 689B.245–689B.249, which gave employees of sub-20-employee employers continued group coverage, were repealed effective January 1, 2014 by 2013 Nev. Stat. ch. 541 (AB 425). The sections are simply absent from the current chapter — it runs 689B.110 straight to 689B.250 — so do not rely on a continuation right under 689B. Check the policy and any conversion right in 689A on its own terms.
The Nevada benefit you must provide
The main state-mandated benefit is paid leave for employers with 50+ employees (NRS 608.0197 / SB 312). Workers' compensation is mandatory and administered by the Division of Industrial Relations.
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