North Dakota Tax

For North Dakota residents, you specify the employee's status and exemptions.

Deltek Modification Date - 1/18/19

Enter the following field information for residents of North Dakota on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter the marital status claimed by the employee for federal income tax purposes on Form W-4. S: Single M: Married
Exemptions	Enter the total number of allowances claimed by the employee for federal income tax purposes on Form W-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form W-4. Additional exemptions for age and blindness. Exemptions for dependents.
Other Exemptions	North Dakota’s tax calculations do not use the Other Exemptions field.

Supplemental Wages

Supplemental (bonus run) wages are taxed at 1.84%.

Automatically Calculated Variables

DPS automatically computes the allowance, which is used in determining the net income tax.

Allowance

The allowance is based on the number of exemptions in the first Exemptions field. It is determined by multiplying the number of exemptions by $4,200.

How DPS Calculates Tax

To calculate an employee's North Dakota State tax, DPS does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's allowance and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.
5. Rounds the final results of calculations to the nearest whole dollar.