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

The North Dakota State Agency that overseesand $250 for conspiracy in North Dakota.The
the collection and reporting of State incomeNorth Dakota new hire-reporting agency can be
taxes deducted from payroll checks is:Statereached at 800-755-8530 or 701-328-3582 or on
Tax  Departmentthe web at Dakota does not allow compulsory
direct depositNorth Dakota requires the
State  Capitolfollowing information on an employee's pay
stub:Gross  and  Net  Earnings
600  East  Boulevard  Ave.
straight  time  and  overtime  pay
Bismarck,  ND  58505-0599
hours  worked
(701)  328-3125
required  state  and  federal  deductions
Dakota does not use a state form to
calculate state income tax withholding.Notemployee authorized deductionsNorth Dakota
all states allow salary reductions made underrequires that employee be paid no less often
Section 125 cafeteria plans or 401(k) to bethan monthly or agreed-on paydays.In North
treated in the same manner as the IRS codeDakota there are no statutory requirements
allows. In North Dakota cafeteria plans areconcerning the lag time between when the
not taxable for income tax calculation;services are performed and when the employee
taxable for unemployment insurance purposes.must be paid.North Dakota payroll law
401(k) plan deferrals are not taxable forrequires that involuntarily terminated
income taxes; taxable for unemploymentemployees must be paid their final pay by
purposes.In North Dakota supplemental wagesnext regular payday or within 15 days,
are taxed at a 3.92% flat rate.You must filewhichever is earlier; or by certified mail at
your North Dakota State W-2s by magneticemployee's address. Voluntarily terminated
media if you are required to file youremployees must be paid their final pay by the
federal W-2s by magnetic media.The Northnext regular payday.Deceased employee's wages
Dakota State Unemployment Insurance Agencymust be paid when normally due to the
is:Job  Service  North  Dakotasurviving spouse or next eligible heir (in
that order) after affidavit showing proof of
Job  Insurance  Administrationrelationship.Escheat laws in North Dakota
require that unclaimed wages be paid over to
1000  E.  Divide  Ave.the state after two years.The employer is
further required in North Dakota to keep a
Bismarck,  ND  58501record of the wages abandoned and turned over
to the state for a period of 10 years.North
(701)  328-2843Dakota payroll law mandates no more than 33%
of minimum wage may be used as a tip
State of North Dakota taxable wage base forcredit.In North Dakota the payroll laws
unemployment purposes is wages up tocovering mandatory rest or meal breaks are
$18,500.00.North Dakota has optionalonly that all employees must have 30 minutes
reporting of quarterly wages on magneticrest after five hours of work.There is no
media.Unemployment records must be retainedprovision in North Dakota law concerning
in North Dakota for a minimum period of fiverecord retention of wage and hour records
years. This information generally includes:therefor it is probably wise to follow FLSA
name; social security number; dates of hire,guidelines.The North Dakota agency charged
rehire and termination; wages by period;with enforcing Child Support Orders and laws
payroll pay periods and pay dates; date andis:Child  Support  Enforcement  Division
circumstances of termination.The North Dakota
State Agency charged with enforcing the stateDepartment  of  Human  Services
wage  and  hour  laws  is:Department of Labor
1929  N.  Washington  St.
State  Capitol  Bldg.
P.O.  Box  7190
600  East  Blvd.  Ave.,  Dept.  406
Bismarck,  ND  58507-7190
Bismarck,  ND  58505-0340
(701)  328-3582
(701)  328-2660
Dakota has the following provisions for
minimum wage in North Dakota is $5.15 perchild support deductions:When to start
hour.The general provision in North DakotaWithholding? First  day  after pay period.
concerning paying overtime in a non-FLSA
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
that every employer must report every newWhen to send Termination Notice? Within 7
hire and rehire. The employer must reportdays  of  termination.
the federally required elements of:Employee's
nameMaximum Administrative Fee? $3 per month.
Employee's  addressWithholding Limits? 50% of disposable
earnings.
Employee's  social  security  number
Please note that this article is not updated
Employer's  namefor changes that can and will happen from
time to time.Charles J. Read, CPA has been in
Employers  addressthe payroll, accounting and tax business for
30 years, the last fifteen in private
Employer's Federal Employer Identificationpractice. Mr. Read is the author of "How to
Number (EIN) This information must beStart a New Business".For Professional
reported within 20 days of the hiring orPayroll services at a Budget Price go to a
rehiring.Paperless Payroll Company.Go to For a full
service payroll service bureau with CPA's on
The information can be sent as a W4 orstaff.See an excerpt of Mr. Read's interviews
equivalent  by  mail,  fax or electronically.from William Shatners "Heartbeat of America"
television show on the websites linked above.
There is a $20.00 penalty for a late report



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