North Dakota Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of North Dakota.
North Dakota mostly uses the same minimum wage rate as the federal government requires in the Fair Labor Standards Act (FLSA). The main differences revolve around the tip credits the state allows and the tipped minimum wage rate it uses for those credits.
When it comes to processing payroll, North Dakota-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
The below information was last updated January 30, 2024. It is not intended as legal or tax advice.
North Dakota Minimum Wage Rates
|
Wage Type |
North Dakota Rates |
Federal Rates |
|
Minimum Wage |
$7.25 |
$7.25 |
|
Tipped Minimum Wage |
$4.86 |
$2.13 |
|
Actual Tip Credit |
$2.39 |
$5.12 |
North Dakota State Income Tax (SIT) Rates
North Dakota's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax. Moreover, the rates used differ based on whether an employee's Form W-4 was filed before or after 2020.
| W-4 Filed | Filing Status | Income Tax Bracket [Over X] - [But not over Y] |
2024 Income Tax Rate |
| Pre 2020 | Single / Head of Household |
$0 - $52,025 | 0.00% |
| $52,025 - $233,275 | 1.95% of excess over $52,025 | ||
| $233,275 or greater | $3,534.38 + 2.50% of excess over $233,275 | ||
| Married | $0 - $51,975 | 0.00% | |
| $51,975 - $152,150 | 1.95% of excess over $51,975 | ||
| $152,150 or greater | $1,953.41 + 2.50% of excess over $152,150 | ||
| 2020 or later | Single | $0 - $52,025 | 0.00% |
| $52,025 - $233,275 | 1.95% of excess over $52,025 | ||
| $233,275 or greater | $3,534.38 + 2.50% of excess over $233,275 | ||
| Married | $0 - $51,975 | 0.00% | |
| $51,975 - $152,150 | 1.95% of excess over $51,975 | ||
| $152,150 or greater | $1,953.41 + 2.50% of excess over $152,150 | ||
| Head of Household | $0 - $70,900 | 0.00% | |
| $70,900 - $261,500 | 1.95% of excess over $70,900 | ||
| $261,500 or greater | $3,716.70 + 2.50% of excess over $261,500 |
|
Additional North Dakota SIT Details |
|
|
Supplemental Withholding Computation |
1.50% |
|
Valid Filing Statuses |
|
|
Exemptions |
Number of allowances
|
|
Form W-4 |
N/A (the state defers to the Federal Form W-4) |
|
Reconciliation Frequency |
Annual |
North Dakota State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
North Dakota SUI Tax Details |
|
|
Taxable Wage Base |
$43,800 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.08% - 9.68% |
|
Rates for New Employers |
|
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
Yes; due by April 30 of the year the contribution is for |
North Dakota State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. North Dakota, however, doesn't require employers to collect an SDI tax.
Miscellaneous North Dakota Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. North Dakota currently has reciprocal agreements with the following states:
- Minnesota
- Montana
Residents from either of these states who work in North Dakota must submit a completed Form NDW-R to their employers annually to be exempt from North Dakota SITs.
Paid Sick Leave (PSL) Taxes
The state of North Dakota doesn’t require employers to collect PSL taxes, nor does it have a program providing such leave to employees.
Paid Family and Medical Leave (PFML) Taxes
The state of North Dakota doesn’t require employers to collect PFML taxes, nor does it have a program providing such leave to employees.
North Dakota Employer Registration
The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the State Tax Commissioner for withholding tax topics and Job Service North Dakota for unemployment tax topics.
|
Registration Details |
State Tax Commissioner |
Job Service North Dakota |
|
Phone |
(701) 328-7088 | (701) 328-5000 |
|
Online Registration |
ND TAP Account Application Page | UI EASY Account Creation Page |
| Registration Form | N/A | Employers must call to request a printed registration form. |
|
Registration Instructions |
Online registration is required. Account numbers will be issued in 3-5 days. | Online and paper registration options are available. Account numbers will be issued during the online process or in 8-10 weeks via mail. |
|
Employer Self-Service Login |
ND TAP Login Page | UI EASY Login Page |
Additional North Dakota Payroll Tax Resources
- NDTax Business Homepage
- NDTax Forms Library
- Job Service North Dakota Employer's Guide
- Unemployment Business Tax Forms Library
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
Get Taxes Done Right, Without the Stress
We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.