North Dakota payroll taxes for employers (2026)

Four North Dakota rules that surprise new employers

Workers comp only through WSI

WSI says you need coverage before you hire your first employee, with limited exceptions. Because WSI is the only source, a bundled workers comp policy from a payroll company or a PEO's master policy elsewhere is not how North Dakota work gets covered. Before signing, find out whether the provider can report payroll to WSI for you. Our workers comp pricing guide explains how premiums work in states with private markets, for comparison.

Construction starts at the top of the scale

The 2026 schedule runs from 0.07% to 9.67%, and a new construction employer is placed at 9.67% from day one. Multiply 9.67% by $46,600 and a builder owes $4,506.22 for each worker, close to ten times the $466.00 an office or shop pays at 1.00%. The same schedule shows 6.07% for new non-construction accounts in its negative-balance column. Builders should read our construction payroll guide.

A wide zero bracket for withholding

On the 2026 annual percentage method, single employees pay nothing on the first $57,625, then 1.95% up to $258,450 and 2.50% above. For married employees the brackets are $0 up to $57,500, 1.95% up to $168,525 and 2.50% above. A single worker on $50,000 sits inside the $0 bracket. The booklet we relied on gave no flat percentage for bonuses.

Monthly pay and certified-mail final checks

NDCC 34-14-02 allows paydays as rarely as once a calendar month, on regular days set in advance. Whoever ends the job, the last wages fall due on the next regular payday, and after a discharge the law has you send them by certified mail to an address the employee designates (NDCC 34-14-03).

Hourly pay cannot drop below $7.25. Tipped staff need at least $4.86 in cash, since North Dakota limits the tip credit to 33% ($2.39). Our research turned up no paid family leave deduction and no city wage tax, but we did not find an official list that rules either out. Job Service had not posted a 2027 rate schedule by our check date.

North Dakota employer payroll facts at a glance

Opening North Dakota employer accounts, in order

1. Apply to the IRS for an employer identification number.
2. Create a UI tax account with Job Service North Dakota in its online portal (apps.nd.gov/jsnd/uiiatax). The account carries your 1.00% or 9.67% rate.
3. Sign up with the North Dakota Office of State Tax Commissioner as a withholding agent and load the 2026 withholding rates booklet.
4. Set up a WSI policy before the first employee starts.
5. Report each new hire to North Dakota Health and Human Services within 20 days after the first day the person works for pay.
6. Publish regular paydays, at least monthly. See how to choose a pay schedule.

Employer cost of a $50,000 worker in North Dakota

For a new non-construction business, the four payroll tax lines come to $4,333.00. WSI premium is billed separately and is not included because it depends on your industry classification.

For a builder, the 9.67% line lifts the bill to $8,373.22. On the paycheck, a single employee earning $50,000 has $3,825.00 of FICA withheld, plus federal income tax, and no North Dakota income tax under the annual percentage method. The calculator below takes any salary; for base-to-base comparisons, use the 2026 SUTA rate table.

Payroll companies and PEOs serving North Dakota

Ask any payroll service to confirm it files North Dakota withholding and UI returns. The weak spot is workers comp: since WSI is the only carrier, you report payroll to WSI yourself or through a provider that supports it. Confirm that, and confirm the construction rate is loaded correctly if you build.

Our ranked list of payroll software and the payroll fee breakdown show what each service charges. A PEO can still handle benefits and HR here. Hiring in Fargo-Moorhead or near the western border? See Minnesota, South Dakota and Montana; pay floors for each are on the 2026 minimum wage table.