Request a Demo

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.

Select a state or federal tax guide
Skip to end of table of contents

Table of Contents

  1. North Dakota Minimum Wage Rates
  2. North Dakota State Income Tax (SIT) Rates
  3. North Dakota State Unemployment Insurance (SUI) Rates
  4. North Dakota State Disability Insurance (SDI) Rates
  5. Miscellaneous North Dakota Tax Information
  6. North Dakota Employer Registration
  7. Additional North Dakota Payroll Tax Resources

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:

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
  • S = Single
  • M = Married; filing jointly
  • H = Head of Household

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
  • 1.09% (new positive balance, non-construction employers)
  • 6.08% (new negative balance, non-construction 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.

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

 

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.

011002000110a-taxservices-fullwidth

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.

Payroll Tax Services