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

The North Dakota State Agency that overseesNorth Dakota does not allow compulsory direct
the collection and reporting of State income taxesdeposit
deducted from payroll checks is:North Dakota requires the following information on
State Tax Departmentan employee's pay stub:
State CapitolGross and Net Earningsstraight time and overtime
600 East Boulevard Ave.payhours workedrequired state and federal
Bismarck, ND 58505-0599deductionsemployee authorized deductions
(701) 328-3125North Dakota requires that employee be paid no
North Dakota does not use a state form toless often than monthly or agreed-on paydays.
calculate state income tax withholding.In North Dakota there are no statutory
Not all states allow salary reductions made underrequirements concerning the lag time between
Section 125 cafeteria plans or 401(k) to bewhen the services are performed and when the
treated in the same manner as the IRS codeemployee must be paid.
allows. In North Dakota cafeteria plans are notNorth Dakota payroll law requires that involuntarily
taxable for income tax calculation; taxable forterminated employees must be paid their final pay
unemployment insurance purposes. 401(k) planby next regular payday or within 15 days,
deferrals are not taxable for income taxes;whichever is earlier; or by certified mail at
taxable for unemployment purposes.employee's address. Voluntarily terminated
In North Dakota supplemental wages are taxed atemployees must be paid their final pay by the
a 3.92% flat rate.next regular payday.
You must file your North Dakota State W-2s byDeceased employee's wages must be paid when
magnetic media if you are required to file yournormally due to the surviving spouse or next
federal W-2s by magnetic media.eligible heir (in that order) after affidavit showing
The North Dakota State Unemploymentproof of relationship.
Insurance Agency is:Escheat laws in North Dakota require that
Job Service North Dakotaunclaimed wages be paid over to the state after
Job Insurance Administrationtwo years.
1000 E. Divide Ave.The employer is further required in North Dakota
Bismarck, ND 58501to keep a record of the wages abandoned and
(701) 328-2843turned over to the state for a period of 10 years.
The State of North Dakota taxable wage baseNorth Dakota payroll law mandates no more than
for unemployment purposes is wages up to33% of minimum wage may be used as a tip
$18,500.00.credit.
North Dakota has optional reporting of quarterlyIn North Dakota the payroll laws covering
wages on magnetic media.mandatory rest or meal breaks are only that all
Unemployment records must be retained in Northemployees must have 30 minutes rest after five
Dakota for a minimum period of five years. Thishours of work.
information generally includes: name; social securityThere is no provision in North Dakota law
number; dates of hire, rehire and termination;concerning record retention of wage and hour
wages by period; payroll pay periods and payrecords therefor it is probably wise to follow
dates; date and circumstances of termination.FLSA guidelines.
The North Dakota State Agency charged withThe North Dakota agency charged with enforcing
enforcing the state wage and hour laws is:Child Support Orders and laws is:
Department of LaborChild Support Enforcement Division
State Capitol Bldg.Department of Human Services
600 East Blvd. Ave., Dept. 4061929 N. Washington St.
Bismarck, ND 58505-0340P.O. Box 7190
(701) 328-2660Bismarck, ND 58507-7190
The minimum wage in North Dakota is $5.15 per(701) 328-3582
hour.North Dakota has the following provisions for child
The general provision in North Dakota concerningsupport deductions:
paying overtime in a non-FLSA covered employerWhen to start Withholding? First day after pay
is one and one half times regular rate afterperiod.
40-hour week.When to send Payment? Within 7 days of
North Dakota state new hire reportingPayday.
requirements are that every employer mustWhen to send Termination Notice? Within 7 days
report every new hire and rehire. The employerof termination.
must report the federally required elements of:Maximum Administrative Fee? $3 per month.
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.
Employers addressCharles J. Read, CPA has been in the payroll,
Employer's Federal Employer Identification Numberaccounting and tax business for 30 years, the last
(EIN)fifteen in private practice.
This information must be reported within 20 daysMr. Read is the author of "How to Start a New
of the hiring or rehiring.Business."
The information can be sent as a W4 orTo find professional payroll service at a budget
equivalent by mail, fax or electronically.price go to a paperless payroll company.
There is a $20.00 penalty for a late report andFor a full service payroll bureau with CPA's on
$250 for conspiracy in North Dakota.staff visit .
The North Dakota new hire-reporting agency canSee an excerpt of Mr. Read's interviews from
be reached at 800-755-8530 or 701-328-3582 orWilliam Shatners "Heartbeat of America" television
on the web atshow on the web sites linked above.