Payroll North Dakota, Unique Aspects of North Dakota Payroll Law and Practice

The North Dakota State Agency that overseesat 800-755-8530 or 701-328-3582 or on the web
the collection and reporting of State income taxesat Dakota does not allow compulsory direct
deducted from payroll checks is:State TaxdepositNorth Dakota requires the following
Departmentinformation on an employee's pay stub:Gross and
State CapitolNet Earnings
600 East Boulevard Ave.straight time and overtime pay
Bismarck, ND 58505-0599hours worked
(701) 328-3125required state and federal deductions
Dakota does not use a state form to calculateemployee authorized deductionsNorth Dakota
state income tax withholding.Not all states allowrequires that employee be paid no less often than
salary reductions made under Section 125monthly or agreed-on paydays.In North Dakota
cafeteria plans or 401(k) to be treated in thethere are no statutory requirements concerning
same manner as the IRS code allows. In Norththe lag time between when the services are
Dakota cafeteria plans are not taxable for incomeperformed and when the employee must be
tax calculation; taxable for unemploymentpaid.North Dakota payroll law requires that
insurance purposes. 401(k) plan deferrals are notinvoluntarily terminated employees must be paid
taxable for income taxes; taxable fortheir final pay by next regular payday or within 15
unemployment purposes.In North Dakotadays, whichever is earlier; or by certified mail at
supplemental wages are taxed at a 3.92% flatemployee's address. Voluntarily terminated
rate.You must file your North Dakota State W-2semployees must be paid their final pay by the
by magnetic media if you are required to file yournext regular payday.Deceased employee's wages
federal W-2s by magnetic media.The Northmust be paid when normally due to the surviving
Dakota State Unemployment Insurance Agencyspouse or next eligible heir (in that order) after
is:Job Service North Dakotaaffidavit showing proof of relationship.Escheat laws
Job Insurance Administrationin North Dakota require that unclaimed wages be
1000 E. Divide Ave.paid over to the state after two years.The
Bismarck, ND 58501employer is further required in North Dakota to
(701) 328-2843keep a record of the wages abandoned and
State of North Dakota taxable wage base forturned over to the state for a period of 10
unemployment purposes is wages up toyears.North Dakota payroll law mandates no more
$18,500.00.North Dakota has optional reporting ofthan 33% of minimum wage may be used as a
quarterly wages on magnetictip credit.In North Dakota the payroll laws covering
media.Unemployment records must be retained inmandatory rest or meal breaks are only that all
North Dakota for a minimum period of five years.employees must have 30 minutes rest after five
This information generally includes: name; socialhours of work.There is no provision in North
security number; dates of hire, rehire andDakota law concerning record retention of wage
termination; wages by period; payroll pay periodsand hour records therefor it is probably wise to
and pay dates; date and circumstances offollow FLSA guidelines.The North Dakota agency
termination.The North Dakota State Agencycharged with enforcing Child Support Orders and
charged with enforcing the state wage and hourlaws is:Child Support Enforcement Division
laws is:Department of LaborDepartment of Human Services
State Capitol Bldg.1929 N. Washington St.
600 East Blvd. Ave., Dept. 406P.O. Box 7190
Bismarck, ND 58505-0340Bismarck, ND 58507-7190
(701) 328-2660(701) 328-3582
minimum wage in North Dakota is $5.15 perDakota has the following provisions for child
hour.The general provision in North Dakotasupport deductions:When to start Withholding?
concerning paying overtime in a non-FLSAFirst day after pay period.
covered employer is one and one half timesWhen to send Payment? Within 7 days of
regular rate after 40-hour week.North DakotaPayday.
state new hire reporting requirements are thatWhen to send Termination Notice? Within 7 days
every employer must report every new hire andof termination.
rehire. The employer must report the federallyMaximum Administrative Fee? $3 per month.
required elements of:Employee's nameWithholding Limits? 50% of disposable earnings.
Employee's addressPlease note that this article is not updated for
Employee's social security numberchanges that can and will happen from time to
Employer's nametime.Charles J. Read, CPA has been in the payroll,
Employers addressaccounting and tax business for 30 years, the last
Employer's Federal Employer Identificationfifteen in private practice. Mr. Read is the author
Number (EIN) This information must be reportedof "How to Start a New Business".For Professional
within 20 days of the hiring or rehiring.Payroll services at a Budget Price go to a
The information can be sent as a W4 orPaperless Payroll Company.Go to For a full service
equivalent by mail, fax or electronically.payroll service bureau with CPA's on staff.See an
There is a $20.00 penalty for a late report andexcerpt of Mr. Read's interviews from William
$250 for conspiracy in North Dakota.The NorthShatners "Heartbeat of America" television show
Dakota new hire-reporting agency can be reachedon the websites linked above.