A Guide to Nebraska PEO Services

In Nebraska, compliance with state employment laws can be time-consuming for growing businesses. A Nebraska-based professional employer organization (PEO) ensures payroll, HR, and benefits are handled correctly while minimizing legal risk. Deel strengthens this model by combining Nebraska-specific compliance support with automated payroll and benefits to manage both local and global growth.

Keep reading to discover how a PEO partnership works and the impact it could have on your business operations.

What is a PEO in Nebraska and how does it work?

PEO services manage HR, payroll, and benefits administration on behalf of your business, freeing your internal team to focus on strategy and growth. In Nebraska, these organizations are regulated under the PEO Registration Act, and the Nebraska Department of Labor (NDOL) maintains a list of registered providers for employers to reference.

A PEO arrangement works through a co-employment model. The client company continues to oversee daily operations and employee management, while the PEO becomes the employer of record for tax filings, workers’ compensation, and unemployment insurance.

Employees also gain access to health insurance, retirement plans, and other benefits made available through the PEO’s larger purchasing pool. Despite this shared responsibility, the employer retains full authority over staff and business operations.

How much does a PEO cost in Nebraska?

Most professional employer organizations charge an administrative services fee, using one of two common models:

• Flat fee per employee (around $1,000–$2,000 annually)
• Payroll-based percentage (2%–11% of payroll)

Pricing is influenced by state regulations, employee headcount, and the range of HR services included. Learn more about Deel PEO’s pricing model.

How to choose the right PEO in Nebraska

Nebraska’s complex laws call for a strategic approach toward selecting a PEO. Follow these seven steps to find a provider that can ### PEO vs HRIS

Many confuse professional employer organizations with HRIS because both streamline HR functions, but the key difference is that an HRIS is a software/system for internal use, whereas a PEO is a service provider that becomes a co-employer bearing compliance obligations. Here are key differences between the two:

A PEO is ideal if you want to offload HR, compliance, and payroll entirely. An HRIS, on the other hand, is designed for businesses with their own HR staff who just need better tools.

For fast-growing businesses, Deel bridges the gap. It offers the compliance strength of a PEO alongside the flexibility of an HRIS, giving you global payroll, benefits, and HR management in a single system. compliance while helping you achieve business goals.

1. Define your business needs

Assess your current HR operations to identify areas for improvement. Consider where the PEO could streamline processes or eliminate redundancies to make your business more efficient.

Which PEO services are you most likely to need? Specifically focus on your payroll, benefits administration, and risk management to see where you most require support.

As your needs are likely to change, think about how you could adapt the PEO services over time. For example, will you want to expand to other states? Or potentially reduce the service to payroll and benefits administration?

2. Research PEOs with Nebraska expertise

Start by checking your PEO is registered with NDOL. This shows you that the provider is legitimate and has the resources and capabilities to support your operations.

Narrow your search to PEOs with a strong presence and history of success within Nebraska. Case studies, testimonials, and reviews can tell you what to expect from their service.

3. Evaluate the range of services and quality of benefits

Research each PEO’s offerings to check they meet your organization’s needs. In particular, ensure their benefits packages are both comprehensive and affordable.

Additionally, assess the provider’s software through free demos and trials. See whether the tools will be intuitive for your team to learn and use and if you can tailor the features to your processes and practices.

4. Assess compliance and risk management capabilities

Ask the PEO how they stay updated on state and federal regulations and communicate these changes to client companies. Leading providers take a proactive approach to compliance management. For example, Deel has a compliance hub that notifies customers of regulatory updates that affect their business operations.

5. Check customer service and support

Ensure the PEO can respond to any issues and resolve them promptly. Consider factors like their availability, contact options, and average response times.

Check whether you’ll get a dedicated customer success manager assigned to your account. Having a single point of contact will spare you from explaining your situation to multiple people, meaning you can get to the heart of issues faster.

6. Review and negotiate the contract

Thoroughly read the PEO contract to check you understand all your rights and responsibilities. It’s best to get a legal professional to check everything is in your company’s interests and negotiate for more favorable terms if not.

Check the contract clarifies your and the provider’s responsibilities in every scenario. For example, how long does your company have to commit to the service? What process must you follow when leaving the PEO?

7. Plan for implementation and transition

Once you’ve entered negotiations with the PEO, start to prepare your team for the transition. Inform your employees about the upcoming changes and explain all the benefits.

A structured timeline can help you prevent delays. Agree on what you need to achieve by different dates with the PEO and ensure all tasks have been assigned. Leading providers like Deel can recommend the most effective ways to manage the transition, including which departments to involve and what information to give us.

What are the benefits of using a PEO for Nebraskan businesses?

Outsourcing to a PEO helps streamline operations, mitigate risks, and improve worker satisfaction. Here’s a closer look at the benefits you can expect from the partnership:

• Improved efficiency and savings: PEOs reduce overhead costs and save time by handling HR administration. They also support operations across multiple states, simplifying regional growth. Deel PEO extends this advantage by managing compliance in all 50 US states and offering one system for multi-state payroll, so expansion doesn’t require juggling multiple vendors.
• Local expertise on demand: With Nebraska’s employment laws often posing challenges, a PEO ensures you always have specialists available to help with compliance and HR issues.
• Affordable employee benefits: By leveraging group buying power, PEOs negotiate competitive rates for healthcare, retirement, and workers’ compensation plans. This levels the playing field for small and mid-sized businesses that otherwise struggle to compete with larger employers when it comes to benefits packages.
• Automation at scale: From payroll to HR analytics, PEOs offer platforms that eliminate repetitive tasks and give leaders better visibility into workforce trends.
• Compliance assurance: A PEO takes responsibility for HR and tax compliance, shielding you from penalties and reputational risks, especially since Nebraska publishes citation lists. Partnering with a PEO allows your in-house team to focus on operations while experts manage legal requirements in the background.

Payroll, labor, and employment laws in Nebraska

• Nebraska requires employers to follow a mix of federal and state laws. When you work with a PEO, they ensure your business complies with all of the relevant legislation. Here’s an overview of the main payroll, labor, and employment laws in the state:

Payroll and benefits laws

• Minimum wage: Nebraska set the minimum wage at $13.50 per hour from January 1st, 2025. The state adjusts this limit every year and they intend to increase it to $15 per hour in 2026.
• Tips: You can pay service workers $2.13 per hour provided the sum of their wages and tips doesn’t fall any lower than the minimum rate.
• Pay rates: Employers may reduce the pay rate as long as they inform the worker ahead of time and meet the minimum wage requirements.
• Overtime: Nebraska follows federal law concerning overtime, which mandates that employees receive 1.5 times their regular rate for any time worked over 40 hours in a single week.
• Supplementary pay: If you pay variable compensation like bonuses and commissions separately from regular payroll, you must withhold a fixed tax rate of 5%.
• Pay transparency: There are no pay transparency laws in Nebraska, but it’s becoming common practice to include the salary range in job adverts.
• Payday frequency: Nebraska is one of the few states that doesn’t set a minimum payroll frequency. Provided you pay your workers regularly, you’re free to decide how often you process wages.
• Paystubs: Employers in Nebraska must provide paystubs either on paper or electronically. Every paystub must include the pay period, hours worked, and wages accrued.
• Final paychecks: Nebraska requires employers to pay the final paycheck within two weeks or by the next payday, whichever is sooner. You’re not permitted to withhold wages until employees have returned company property.
• State income tax: You must remit income tax from employee wages. Nebraska has a tiered system based on each worker’s salary which ranges between 2.46% and 6.64%.

Labor laws

• Meal and rest breaks: Certain workers in the manufacturing industry are entitled to a 30-minute break per eight-hour shift. Otherwise, it’s your choice whether to incorporate breaks into your company policy.
• Time off: Nebraska doesn’t require you to provide paid time off (PTO) to workers. If you include it in company policy, you must pay out all PTO at the end of the work year or upon termination of the contract.
• Nebraska paid sick leave: Starting October 1, 2025, Initiative 436 will require mandatory paid sick leave of 40 hours for small employers and 56 for larger ones.
• Pump breaks: Nursing parents are entitled to take breaks whenever necessary to express milk for their children. You must provide a private space other than a bathroom for them to do so.
• Jury duty: You must pay workers their regular wages while they’re on jury duty, minus the daily rate the court pays them.
• Workers' comp: All businesses must secure workers’ compensation for their employees in Nebraska. This insurance must cover injuries and illnesses that arise due to both sudden events and long-term exertion or exposure in the workplace.
• Workplace safety: Employers in Nebraska are subject to the federal Occupational Safety and Health Administration (OSHA). The state has a voluntary service called the On-site Safety and Health Consultation Program, which offers businesses mock inspections and consults to help them meet OSHA standards.
• Unions: Employees have the right to be represented by a union. As the employer, you may not pressure anyone to either participate in or refrain from joining union activities.

Employment laws

• Worker classification: Nebraska has set the Employee Classification Act (ECA) to protect the rights of construction and delivery workers. However, there are no explicit criteria mentioned in their legislature. The state uses common law to determine whether there’s an employment relationship and contractors should have access to benefits
• Contractors: Freelancers must register with the government if they work somewhere other than their own premises. Nebraska’s new labor reforms expand worker protections, with mandatory sick leave and tougher penalties for child labor violations. Misclassifying employees can now trigger backdated wages, full entitlements, and reputational harm. Deel’s AI-based worker classification monitor helps businesses avoid these risks, while also ensuring on-site contractors meet registration requirements for legal compliance.
• At-will employment: Nebraska is an at-will state meaning you can terminate employment at any time provided the reason is legal. Note that this same law gives your employees the freedom to resign without notice.
• Discrimination and harassment: Employers mustn’t discriminate against or provide preferential treatment to workers based on factors like race, age, and disability. The state will investigate any businesses they believe to have violated these laws.
• Paid family leave: Under the Family and Medical Leave Act (FMLA), new parents who have been in your employment for a year or longer can take up 12 weeks of paid leave. You can require them to take some of their existing PTO during that time.
• Catastrophic leave: Employees can donate PTO to colleagues suffering from a serious illness or injury. The colleague in question must have used up all their existing leave first.
• Family military leave: The immediate family members of those on military leave can request unpaid time off to visit them. They must’ve been in your employment for at least 12 months and the service must be for 179 consecutive days.

Additional requirements and enforcement

Besides adhering to the laws above, employers in Nebraska are required to pay unemployment insurance (UI). This consists of quarterly contributions and any reimbursements your former employees claim.

Nebraska determines your UI tax rate based on what’s known as your experience factor. This system gives you a rating based on the ratio of wages you’ve paid to UI insurance claims against your business. If you lay off a lot of your workforce, you’ll have a higher score and therefore a higher UI rate.

UI rates range from 0% to 5.4% according to your score. New employers must pay a fixed rate of 1.25% unless they’re in the construction industry in which case it’s 5.4%.

The taxable wage rate also differs across categories. Low-scoring companies only have to pay tax on the first $9,000 of employee wages whereas high-scoring ones must pay it on the first $24,000.

Read our guide to Nebraska payroll for more details on UI and state taxes.

If you partner with a PEO, the provider assumes responsibility for UI contributions under its own account, and removes the need for employers to manage quarterly filings, maintain detailed wage records, or process reimbursements tied to claims.

How to choose the right PEO in Nebraska

Nebraska’s complex laws call for a strategic approach toward selecting a PEO. Follow these seven steps to find a provider that can manage compliance while helping you achieve business goals.

1. Map your HR pain points

Begin with a clear inventory of where your HR function is strained and identify areas of improvement. Is payroll eating up too much time? Do you struggle to design competitive benefits? Are you exposed to compliance risks you don’t fully understand?

As your needs are likely to change, think about how you could adapt the PEO services over time. For example, will you want to expand to other states? Or potentially reduce the service to payroll and benefits administration? This clarity helps you focus on providers that address your most pressing needs.

2. Evaluate the range of services and quality of benefits

PEOs are often judged by the strength of the benefits they bring to the table. Ask to see examples of healthcare, retirement, and workers’ comp packages, then compare them against what large employers in Nebraska are offering. Better rates can translate directly into stronger recruitment and retention.

Deel’s global PEO model gives small and mid-sized companies access to large-group benefits that would be impossible to negotiate alone. This way, Nebraska employers can compete with much larger organizations.

3. Research PEOs with Nebraska expertise

Every PEO you consider should be registered with the Nebraska Department of Labor (NDOL). Registration confirms they’ve met state requirements and are authorized to manage payroll and compliance. Limit your shortlist to providers that not only appear on NDOL’s registry but also demonstrate a track record with Nebraska employers.

4. Assess compliance and risk management capabilities

Nebraska’s labor laws can be unforgiving. Wage payment rules, misclassification risks, and unemployment insurance contributions all require close monitoring. A reliable PEO should have systems that keep you ahead of changes.

Deel, for example, offers a compliance hub that continuously tracks new regulations, simplifies the legal language, and provides AI-driven worker classification tools. This protects businesses from costly missteps like employee misclassification, which can trigger back wages, penalties, and reputational damage.

5. Check customer service and support

The right PEO should act as an extension of your HR team with dedicated account managers, rapid response times, and escalation paths for urgent issues.

Deel builds this into its service model with 24/7 multilingual support, a dedicated customer success manager, and local compliance experts who can step in when Nebraska-specific questions arise. That level of support ensures problems are resolved before they affect your workforce.

6. Review and negotiate the contract

Carefully review contract terms around responsibilities, minimum commitments, and exit options. Businesses that face seasonal shifts, common in Nebraska, may need flexible agreements. Check the contract clarifies your and the provider’s responsibilities in every scenario. For example, how long does your company have to commit to the service? What process must you follow when leaving the PEO?

Always involve legal counsel in the review, and push back on clauses that lock you in without clear benefits.

7. Plan for implementation and transition

A PEO partnership succeeds or fails on execution. Create a structured timeline for payroll cutovers, benefits enrollment, and system onboarding. Keep employees updated to avoid confusion and resistance.

Deel supports this phase with tailored transition playbooks, advising you on which departments to involve first and how to prepare data for a smooth handoff. This minimizes disruption and accelerates adoption across your organization.

Manage your Nebraska, US, and global workers with Deel

Deel’s in-house PEO supports fast-growing teams in Nebraska, across the US, and worldwide. The platform unifies hiring, onboarding, payroll, and benefits with:

• Specialist support from certified HR, payroll, and benefits experts without third-party brokers
• Streamlined benefits that let you select, enroll, and manage US health plans while tracking costs and renewals. View costs, track coverage, and handle renewals—all in one place, without chasing brokers or juggling paperwork.
• Global coverage through exclusive Aetna International plans for employees moving between Nebraska and abroad
• Built-in compliance that monitors federal, state, and local laws to prevent costly errors

Ready to simplify HR in Nebraska? Book a demo to see how Deel’s in-house PEO delivers compliant, all-in-one payroll, benefits, and HR management.