The State of North Dakota offers available, qualified workers
with low employee turnover and high employee productivity. In your Retail
Business, as an employer,
some of your state requirements
consist of...
Employee Income Tax Withholding:
You're required to withhold state income tax from your employee(s) wages.
Note that wages that are subjected to
Federal 
Income Tax withholdings are
subjected to ND income Tax withholdings.
Reciprocity exception:
MN and Montana residents that fill out a NDW-R Form may be exempt from ND income tax withholdings, as well as,
anyone with exempt status on their W-4 Form.
Amount to withhold:
Multiply 
the amount of Federal
Income Tax withheld from wages by 14%,
this is the amount to withhold for ND Income Taxes per employee.
Registration:
If you're required to withhold ND Taxes , you're required to register
with the 
Office of The State Tax Commissioner with Form F-301.
Reporting and Payment Requirements:
You must file 
a quarterly, and annual return, Form F-306 and Form f-307.
These are sent 
to you by the state prior
to their due date!
Quarterly forms along with wages held
must be sent to the State Tax
Commissioner when due. Otherwise you may
pay a penalty. 
Form W-2 Requirement:
You must file a copy of the Federal
Form W-2 with the Office of The State Tax
Commissioner , and also send a copy to the employee , even if the employee is exempt from ND Income
Taxes.
Sales Tax and Use Tax:
As a retailer, you must have a Sales and Use Tax Permit in ND.
If your returns are filed late, you may pay a penalty!
The forms are mailed to you by the state
prior to the end of the quarter.
Local Sales and Use Tax:
Take note that some cities in ND also impose a local sales and use
tax. See the Local Option Guideline for details.
Your permit stays good from year to
year.
Workers Compensation:
You must apply 
for workers compensation
prior to hiring emloyees.
The ND Small
Business Development Center offers extended information about ND.
Click below for more information
regarding employees: