Payroll binders and a hard hat on a desk, North Dakota Hiring Guide

North Dakota Hiring Guide: Withholding Account, Job Service UI Within 20 Days, WSI Before Day One and New Hire Report in 20 Days

North Dakota Hiring Guide: Withholding Account, Job Service UI Within 20 Days, WSI Before Day One and New Hire Report in 20 Days

The first time you put someone on payroll in North Dakota, you take on four separate state registrations with four different agencies. Each one has its own deadline, and missing one can mean penalties even when the employee is doing exactly what you hired them to do. This guide covers the four North Dakota employer registrations, the deadline for each, and the order that keeps you current. It is the practical version of the paperwork you will need for North Dakota employer registration and North Dakota new hire reporting.

This is informational content, not legal or tax advice. Employment, tax, and insurance rules change, and your situation may require review by a qualified attorney or CPA, especially if you have employees in more than one state, oil and gas royalty payments, or a mix of farm and non-farm work. Confirm current requirements with the agency named in each section before you rely on them.

Why North Dakota Has Four Separate Employer Registrations

North Dakota does not issue a general statewide business license. Registering an LLC, corporation, or trade name is a filing with the Secretary of State, not a license, and no major city issues a general business license either. Counties do not license businesses. North Dakota licenses by activity or trade instead, which is why the question "do I need a license to hire people?" usually has a different answer than "do I need a license to open?"

Hiring triggers four employer-side obligations, each handled by a different agency:

Registration Agency Deadline
Income tax withholding account Office of State Tax Commissioner, through ND TAP Set up before your first payroll; Form 306 due Apr 30, Jul 31, Oct 31 and Jan 31
Unemployment insurance Job Service North Dakota, through UI EASY Within 20 days after you first employ workers
Workers' compensation WSI (WorkForce Safety & Insurance) Coverage in place before the employee starts work
New hire reporting State Directory of New Hires Within 20 days of each hire date

1. Income Tax Withholding Account (Office of State Tax Commissioner)

You register for withholding through ND TAP, the Tax Commissioner's online system, at https://tap.tax.nd.gov/?Link=Application. General guidance lives on the agency site at https://www.tax.nd.gov/. Set up the account before you pay your first wages so that your first payroll is withheld correctly.

North Dakota uses the federal Form W-4 that your employees complete for federal withholding, so you do not need a separate state withholding form for each new hire. One important exception: wages a farmer or rancher pays solely for agricultural labor are not subject to North Dakota withholding. If your business is not purely agricultural, do not assume the exception applies to your payroll. Confirm the treatment of your specific workers with the Tax Commissioner.

The filing calendar works like this:

  • Form 306 (withholding return): due quarterly on Apr 30, Jul 31, Oct 31 and Jan 31.
  • E-filing: required if your prior-year North Dakota withholding was $1,000 or more, or if a payroll provider files your federal payroll reports.
  • Annual Form 306: due Jan 31, but allowed only if you filed and paid all four prior-year quarters and withheld under $1,000. Email [email protected] before you choose the annual option. A business that has not yet filed four prior-year quarters cannot meet that test, so most new employers should plan on quarterly filing.
  • Form 307: W-2s and 1099s showing North Dakota withholding are due by Jan 31.

If you pay oil and gas royalties, you have a separate royalty withholding obligation that is not covered by the standard payroll process. Confirm the requirements with the Tax Commissioner before your first royalty payment.

2. Unemployment Insurance Registration (Job Service North Dakota)

Register with Job Service North Dakota through UI EASY within 20 days after you first employ workers. The clock starts on the day you first employ someone, not on your formation date and not on your first payday. If you hire your first person on a Monday, your deadline is 20 days from that Monday, so register in the same week you make the offer.

This guide does not list a registration fee for unemployment insurance. Confirm any charges, account details, and current processing timing directly with Job Service North Dakota before you assume there is no cost.

3. Workers' Compensation Through WSI

Workers' compensation in North Dakota is a state monopoly administered by WSI (WorkForce Safety & Insurance). You obtain coverage from WSI, not from a private carrier. Your coverage must be in place before the employee starts work, which makes WSI the registration with the tightest timing. An employee who is injured on day one without coverage in place creates a serious problem for you, so treat WSI as the first thing you finish before the new hire walks in.

Your premium depends on your payroll and your classification of the work. This guide does not state WSI premium rates, so confirm the current rate structure and your classification with WSI before you calculate your cost of hiring.

4. New Hire Reporting (State Directory of New Hires)

Every new hire must be reported to the State Directory of New Hires. You have two options under NDCC 34-15-03:

  • Report each new hire within 20 days of the hire date.
  • Or submit two monthly electronic transmissions, spaced 12 to 16 days apart.

The hire date is the key date, not the first day of work or the first payday, so track it from the moment someone accepts the job. If you employ more than 24 people, you must report electronically.

The penalty structure under NDCC 34-15-05 works like this: a penalty of $20 per unreported hire applies after you receive a warning. A $250 penalty applies in circumstances tied to an agreement with the employee. Read that section or confirm the exact trigger with the state before you rely on the second figure. Either way, the cheapest path is to report on time, every time.

The Right Order to Complete Your Registrations

Registrations do not have to happen in a single day, but they do have to happen in the right sequence. This order keeps you ahead of each deadline:

  1. Form your entity first, if you have not already. The Secretary of State charges a $135 filing fee for Articles of Organization for an LLC and a $100 filing fee for Articles of Incorporation for a corporation, both filed through FirstStop at https://firststop.sos.nd.gov/. Your entity name, registered agent, and address come first because every later registration uses them.
  2. Get your federal EIN from the IRS. The EIN is a federal requirement, so the state will not issue it for you.
  3. Bind WSI coverage before the first employee's start date. This is the only registration with a hard deadline tied to the day the person starts.
  4. Open your ND TAP withholding account before the first payroll.
  5. Register with Job Service North Dakota in UI EASY within 20 days after the first hire.
  6. Report every new hire to the State Directory of New Hires within 20 days of the hire date.
  7. Complete the federal Form I-9 for each employee and file Form 940 for FUTA. Both are federal obligations, separate from the state registrations above.

What You Do Not Need to Register

Many new employers spend time and money on licenses they do not need. North Dakota has no general business license, so you do not need one just to hire. You may still need an activity license, depending on what the business does:

  • Contractors: The Secretary of State licenses contractors. When the cost, value or price of a construction job exceeds $4,000, the person doing the work must hold a North Dakota contractor license. Licenses cost $100 for Class D (jobs up to $100,000) up to $450 for Class A (over $500,000) and renew annually by March 1.
  • Sales tax: Any business making taxable sales must hold a sales and use tax permit from the Tax Commissioner, applied for through ND TAP about 30 days before opening. The state sales tax rate is 5%, plus any city and county taxes.
  • Trade names: If you operate under a name that is not your legal name, register it as a trade name with the Secretary of State, not a county. The fee is $25 to register, $25 to amend and $25 to renew, and registration must be renewed every 5 years.
  • Other occupations: State boards license some trades such as electricians, plumbers and cosmetologists. The Attorney General and the Department of Health and Human Services license other activities, such as retail alcohol, tobacco, and food establishments. Check with the appropriate agency for your specific activity.

Common Mistakes That Cost Employers Money

  • Counting the unemployment insurance deadline from payday. The 20 days run from the day you first employ workers.
  • Starting an employee before WSI coverage is in place. Coverage must exist before the employee starts work.
  • Assuming new hire reporting follows the payroll date. The 20-day window runs from the hire date.
  • Assuming all farm labor is withheld. Wages paid solely for agricultural labor by a farmer or rancher are not subject to North Dakota withholding, but mixed operations need a careful look.
  • Choosing the annual Form 306 without checking. The annual option has strict conditions, so confirm eligibility with [email protected] first.
  • Waiting to file Form 307 until the last minute. W-2s and 1099s with North Dakota withholding are due by Jan 31.

Questions to Confirm With the Agencies

Several details in this guide depend on current agency practice, so confirm them before you set your process:

  • WSI: current premium rates, classification of your work, and how to bind coverage.
  • Job Service North Dakota: any charges for UI EASY registration and current processing timing.
  • Office of State Tax Commissioner: annual Form 306 eligibility ([email protected]), royalty withholding, and the treatment of mixed agricultural payrolls.
  • New hire reporting: the current submission method for the State Directory of New Hires and the exact trigger for the $250 penalty in NDCC 34-15-05.
  • Secretary of State: general business questions can go to Business Services at (701) 328-2900.

Official Resources

When to Bring in a Professional

A single employee with straightforward wages is manageable on your own with the checklist above. Bring in a CPA if you have royalty payments, mixed farm and non-farm payrolls, employees in multiple states, or a payroll provider that will file on your behalf. Bring in an attorney if you are unsure how your workers should be classified or if you have an employment dispute. The cost of an hour of professional review is small compared with a missed deadline or a penalty for an unreported hire.

Remember that this article is informational only and is not legal or tax advice. Verify every deadline and rule with the named agency before you act on it.

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