Your Ultimate Guide to North Dakota Payroll

Employers in North Dakota must comply with several payroll requirements to ensure proper payroll, including unemployment insurance contributions, personal income tax withholding, and mandatory workers’ compensation coverage.

With progressive income tax rates, state-managed workers’ comp, and strict quarterly deadlines, staying compliant is critical to avoiding penalties.

This guide breaks down the essentials of North Dakota payroll, from SUI tax rates and PIT brackets to workers’ comp costs and filing processes, while showing how Deel can help businesses simplify compliance.

Paying unemployment insurance

In North Dakota, employers are responsible for various payments, specifically employer payroll taxes or payroll withholding. These include federal taxes, such as Medicare and Social Security, and withholding North Dakota state taxes from the employee’s payroll. 

Unemployment insurance is another payment, acting as a joint state-federal program offering cash benefits to eligible workers. Also known as UI, unemployment insurance is a national program administered by the US Department of Labor. 

UI is paid to employees who find themselves unemployed through no fault of their own. Although a federal program, each state is responsible for completing payments. North Dakota employers can manage unemployment insurance through an online portal.
 

SUI tax rates in North Dakota

The State Unemployment Insurance (SUI) tax rate in North Dakota varies based on the employer's experience rating. Here’s a detailed breakdown of the SUI tax rates for the current year:

Find out more about paying unemployment insurance in the state through the North Dakota Job Service. 

See all State Unemployment Insurance (SUI) rates by state

Withholding personal income tax from your North Dakota employee

As a North Dakota employer, you withhold certain state taxes from your employee’s payroll. These are employer payroll taxes or payroll withholding, including personal income tax. 

Personal income tax, also known as individual income tax or state income tax, is deducted from the employee’s wages and withheld by the employer.

Learn more about income tax rates across the US.

State withholding tax rates in North Dakota

North Dakota’s state withholding tax rates depend on the employee's income level and filing status. Below is a table representing the latest withholding tax rates:

Employers can pay the amount withheld from working state residents through North Dakota’s online portal. For more information on calculating and paying the withheld amount, you can consult the North Dakota Office of State Tax Commissioner online.

Paying your North Dakota workers’ compensation

Flat payroll tax and progressive income tax are just two aspects to consider as employers. Employers must also pay workers’ compensation in North Dakota, even if you only have one local employee. 

Workers’ compensation is an insurance premium that covers the costs of any employee injury that occurs while performing their job. Businesses in North Dakota must purchase workers’ compensation from the state fund and can apply for workers’ compensation online. 

To learn more about workers’ compensation in North Dakota, you can visit North Dakota Workforce Safety & Insurance.

Workers' compensation tax rates in North Dakota

Workers' compensation tax rates in North Dakota are determined based on the employer's industry and the claims experience. Below is a general table for reference:

Payroll tax due dates in North Dakota

It's important for employers to adhere to the following payroll tax due dates to avoid penalties:

Submission process for payroll taxes in North Dakota

Employers in North Dakota must follow these steps to submit payroll taxes:

• Registration: Employers must first register with the North Dakota Office of State Tax Commissioner
• Tax calculation: Calculate the amount of SUI, state withholding, and workers' compensation taxes due based on the rates and employee information
• Filing: Submit the tax filings through the state’s online portal or via mail, depending on the type of tax
• Payment: Pay the calculated taxes through the approved payment methods by the due dates

Simplify US payroll tax compliance with Deel

While this guide provides essential information on North Dakota payroll taxes, payroll compliance and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel US Payroll and PEO.

Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.