Payroll Done Right

North Dakota Payroll Requirements: What Employers Need to Know in 2026

North Dakota significantly simplified its income tax structure in recent years, and by 2025 the state moved to a flat income tax rate of 2.5% on all taxable income above a threshold. For 2026, single filers with income up to $44,725 pay 0%, and income above that is taxed at 2.5%. Married filing jointly thresholds are higher. Employers use withholding tables from the Office of State Tax Commissioner, and employees can use Form W-4 along with ND's supplemental withholding instructions to adjust their withholding. The simplification means less complexity in calculating withholding compared to states with six or seven brackets, but you still need the updated 2026 tables from the Tax Commissioner's office.

North Dakota's minimum wage is $7.25/hr, the federal floor. The state hasn't increased it above federal since 2006. There's no current legislation to change that for 2026. Tipped employees can be paid 50% of the standard minimum wage, which works out to $3.63/hr, as long as tips bring them to $7.25. No North Dakota city or county has a local minimum wage ordinance, so the statewide rate applies uniformly.

Unemployment insurance is run by Job Service North Dakota. The SUI wage base for 2026 is $43,800 per employee. That's among the higher wage bases nationally, but North Dakota's rates tend to be reasonable for employers with stable workforces. New employers pay 1.08% for their first couple of years. Experience-rated employers range from 0.08% to 9.97%, though the higher rates apply to employers with significant layoff history. Quarterly SUI returns are due April 30, July 31, October 31, and January 31. You register through the Job Service ND online employer portal. New hire reporting is due to ND Child Support within 20 days of hire.

North Dakota doesn't have a state disability insurance program or mandatory paid family and medical leave. One area employers in North Dakota sometimes trip on is workers' compensation—ND has a state-monopoly workers' comp fund through Workforce Safety and Insurance (WSI), meaning you can't buy workers' comp from a private insurer. You must be registered with WSI and making premium payments before your first employee starts. This isn't a payroll tax in the traditional sense, but it's mandatory and audited.

Federal requirements are standard for 2026: FICA at 7.65% each side on wages up to the Social Security cap ($176,100), Medicare at 1.45% with no wage cap, FUTA at net 0.6% after credit, Form 941 quarterly, W-2s by January 31, 2027. For small businesses in agriculture, there may be special FUTA and FICA rules worth reviewing with a CPA—North Dakota has a meaningful agricultural workforce, and farm workers are treated differently under federal payroll tax rules above certain wage thresholds.

See our guides on North Dakota payroll taxes, 2026 SUI rates, and employer registration steps for more detail.