What are nontaxable wages?
The taxable wage limit is calculated each year at 66 2/3 percent of the average annual wage paid to Nevada workers. Taxes are paid on an individuals wages up to the taxable wage limit during a calendar year. In 2005, the taxable wage limit is $22,900. Although total wages paid to each employee must be reported to the division each quarter, any wages paid to an individual, which exceeds that amount during the calendar year, are not taxed.
