North Dakota Hourly Paycheck Calculator
Starting your new business in North Dakota requires perseverance and dedication. No two days will be the same. And when it comes time to hire employees, you’ll have more responsibility. Paying employees involves more than writing a paycheck. There are taxes, deadlines, and payroll rules you’ll need to follow.
To make it easier for you, we’ve summarized the federal payroll taxes and North Dakota state payroll taxes, as well as some important payroll-related laws—like the minimum wage and Workers’ Compensation insurance requirements.
North Dakota state payroll taxes
Here’s what you need to know about withholding payroll taxes in North Dakota.
- North Dakota payroll taxes start with employees filling out Form NDW-R. This information helps you determine how much you should withhold.
- If an employee does not complete this form, you will need to withhold tax as though no exemptions were claimed.
- Employees only need to update Form NDW-R in case of life events (such as marriage, divorce, birth or adoption of a child, etc.) which may impact their taxes.
- The personal income tax rate in North Dakota is 1.10%–2.90%.
- North Dakota has reciprocity with the following states: Minnesota and Montana.
Additional North Dakota forms
In addition to Form NDW-R mentioned above, North Dakota employers also need to file the following forms:
- North Dakota Quarterly W/H Return (ND F-306)*
- North Dakota Transmittal of Wage and Tax Statements (ND F-307)
- North Dakota Quarterly Contribution (SUI) (ND NDUC-303)
- Wage and Tax Statement (State W2)
- New Hire Report
North Dakota unemployment tax rate
North Dakota requires most employers to pay unemployment insurance tax to help compensate workers who are out of work through no fault of their own.
- Employers pay North Dakota unemployment tax on the first $40,800 of an employee’s wages.
- New employers pay at a rate of 1.13%.
- Experienced employers pay at a rate of 0.08%–9.97%.
- Unemployment tax in North Dakota should be paid quarterly to the Job Service North Dakota.
Paying North Dakota taxes
Here’s what you need to know about paying North Dakota taxes:
- How often employers pay depends on the amount of tax you withhold in a year.
- North Dakota’s payment frequencies are annually and quarterly.
North Dakota minimum wage
In 2023, the minimum wage in North Dakota is $7.25 per hour.
North Dakota overtime pay
Because North Dakota doesn’t have any state law governing overtime pay, the federal rules under the Fair Labor Standards Act apply. Generally speaking, hourly employees are to be paid time-and-a-half for all hours worked over 40 hours in a week.
Requirements to obtain Workers’ Compensation vary by state. This table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
Employers in North Dakota need to report new employees.
- New hires must be reported to New Hire Reporting | Child Support, North Dakota.
- New hires must be reported within 20 days of their first day of work.
You must provide a pay stub to every employee that includes:
- Company’s legal name and address
- Employee’s name and last four digits of their Social Security number
- Pay period beginning and end dates
- Total hours worked
- Rate of pay
- Gross wages
- The amount and reason for any deduction
Employers must pay final wages to employees by the next scheduled payday.
North Dakota law requires employers to provide the following types of time off to employees.
- Jury duty
Voting leave: In some circumstances, employers may be obligated to provide paid time off to allow employees to vote.
Federal payroll taxes
In addition to North Dakota-specific taxes, both you and your employees will pay a variety of federal payroll taxes. Check out the breakdown below.
Federal income tax
Unless they are exempt, your employees will pay federal income tax.
- You must withhold federal income tax from employees’ pay, unless they are exempt.
- Each employee’s Form W-4 will differ based on their filing status and dependents, among other details—so the amount of income tax to be withheld will vary.
- Form W-4 does not need to be sent to the IRS, but should be kept for your records.
Both you and your employees will pay Federal Insurance Contributions Act, or FICA tax.
- FICA is made up of the Medicare tax and the Social Security tax.
- In 2023, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $2,600.
- The Medicare tax requires employers and employees to each contribute 1.45% of all wages.
- See the IRS webpage for details, like maximum thresholds.
Like the state, the federal government also has an unemployment tax, called FUTA, which is paid by employers.
- FUTA is an annual tax an employer pays on the first $7,000 of each employee’s wages.
- The FUTA rate for 2023 is 6.0%, but many employers are able to pay less, for instance, up to 5.4% each year due to tax credits.
- Most employers will pay this tax annually with Form 940. But larger employers with more than $500 in tax due will have to pay quarterly.
Additional Medicare tax
The Additional Medicare tax is paid by employees. Here’s what you should know:
- For employees who earn over $200,000 per year, 0.9% of earnings will need to be withheld for the Additional Medicare tax.
- Whether or not your employee owes this tax may depend on their filing status.
Paying federal taxes
How often you’ll pay federal payroll taxes depends on how much you owe.
- Semi-weekly or monthly payments are required for federal withholding, Additional Medicare, and FICA taxes. And every quarter, a summary payroll tax return is due on Form 941, Employer’s Quarterly Federal Tax Return.
- Quarterly or annual payments are required for federal unemployment tax. Most employers will pay annually, but quarterly payments are necessary if you owe more than $500. Each time you make a payment, you’ll need to file a payroll tax return on Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.
We’re here to help
If you don’t love manual number crunching and payroll taxes sound overwhelming to you, take advantage of Gusto’s full-service payroll options or use an experienced accountant to help you with the process.