US State Tax Summeries

Your Ultimate Guide to US Payroll in North Dakota

Managing payroll in North Dakota? Read our state-by-state guide to US payroll taxes to learn what you must withhold and deduct from employee wages.

Jemima Owen-Jones
Written by Jemima Owen-Jones
July 24, 2023
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Key takeaways

  1. Employers are responsible for making various federal and tax payments on behalf of North Dakota employees.
  2. Unemployment insurance, personal income tax, and workers’ compensation are all necessary payments to consider.
  3. Deel helps companies streamline compliance and employee payments, leaving no stone unturned.

As an employer, you are responsible for executing legal and compliant payroll, which involves navigating various regulations and requirements. Payroll requirements differ from one US state to another, and it’s important to be familiar with state-specific details such as unemployment insurance, personal income tax, and workers’ compensation. 

To help you remain compliant, we’ve put together this guide to ensure proper payroll withholding practices in North Dakota.

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

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. 

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.

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. 

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.

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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