Nevada Revised Statutes 363A.137 – Payroll tax: Credit for matching employee contributions to prepaid tuition contracts and college savings trust accounts
1. An employer is entitled to a credit against the excise tax imposed on the employer pursuant to NRS 363A.130 if:
Terms Used In Nevada Revised Statutes 363A.137
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the Department of Taxation. See Nevada Revised Statutes 360.001
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
(a) The employer makes a contribution to the Nevada Higher Education Prepaid Trust Fund created by NRS 353B.140 on behalf of a qualified beneficiary on whose behalf a prepaid tuition contract is drawn pursuant to NRS 353B.100 and the contribution matches a contribution made on behalf of the qualified beneficiary by an employee of the employer; or
(b) The employer makes a contribution to a savings trust account in the Nevada College Savings Trust Fund created by NRS 353B.340 and the contribution matches a contribution made to the savings trust account by an employee of the employer.
2. A credit described in subsection 1 must be in an amount equal to 25 percent of the matching contribution but may not exceed $500 per contributing employee per year.
3. A credit described in subsection 1 may not be applied retroactively. If the amount of a credit exceeds the tax liability of an employer for a year, the excess may be applied to the tax liability of the employer for 5 years after the year in which the matching contribution was made. A credit applied pursuant to this subsection must be applied during the earliest year for which the employer has a tax liability. If credits for more than 1 year are available to an employer pursuant to this subsection, the credit from the earliest year must be applied first.
4. An employer claiming a credit pursuant to this section shall maintain any record required by the Department regarding the matching contribution for which the credit is claimed.
5. A contribution made by an employer as described in subsection 1 is the property of the employee whose contribution is being matched and may not be claimed in any manner by the employer.
6. As used in this section:
(a) ’Prepaid tuition contract’ has the meaning ascribed to it in NRS 353B.030.
(b) ’Qualified beneficiary’ has the meaning ascribed to it in NRS 353B.050.