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3 min read

Your Ultimate Guide to North Dakota Payroll

US payroll

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Author

Jemima Owen-Jones

Published

July 24, 2023

Last Update

August 21, 2024

Table of Contents

Paying unemployment insurance

SUI tax rates in North Dakota

Withholding personal income tax from your North Dakota employee

State withholding tax rates in North Dakota

Paying your North Dakota workers’ compensation

Workers' compensation tax rates in North Dakota

Payroll tax due dates in North Dakota

Submission process for payroll taxes in North Dakota

Simplify US payroll tax compliance with Deel

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.
 

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:

Employer type SUI tax rate
New Employers 1.21%
Experienced Employers Varies (1.0% to 9.69%) based on experience rating

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. 

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:

Income bracket Single filers Married filers
Up to $40,000 1.10% 0.90%
$40,001 to $95,000 2.04% 1.84%
Over $95,000 2.90% 2.70%

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.

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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:

Industry type Base rate (%)
Construction 6.00%
Manufacturing 3.50%
Retail 1.75%
Services 2.25%

Payroll tax due dates in North Dakota

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

Tax type Due dates
SUI Tax Quarterly (last day of the month following the end of the quarter)
State Withholding Tax Monthly or semi-weekly, depending on the amount withheld

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
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FAQs

Employers can register online through the North Dakota Office of State Tax Commissioner’s website or by submitting a paper application.

Yes, employers may face penalties and interest for late submissions or payments of payroll taxes.

Yes, North Dakota encourages employers to file and pay payroll taxes electronically for efficiency and accuracy.

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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About the author

Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.

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