Unemployment Insurance Tax (FUTA/SUTA): North Dakota

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Joel Fremstad and Lynn Block, Fremstad Law

Summary

• North Dakota uses the Internal Revenue Service's (IRS's) common law test to determine who is an employee for employment tax purposes. North Dakota law defines taxable wages for state unemployment insurance (SUI) purposes as all compensation paid for an employee's personal services. See Common Law Test; SUI Taxable Wages; Taxable Wage Base.
• Employers must file quarterly contribution and wage reports. The reports must be completed and filed along with the deposit of the tax due by the end of the month following each calendar quarter. Certain employers must file electronically. See Quarterly Reporting Requirements.
• An employer's account will be charged for overpayments caused by the employer's failure to properly respond to requests for information about benefit claims. See Benefit Overpayments.
• For SUI purposes, employers are required to maintain and preserve a specific set of records for each employee for at least five years after the calendar year in which the compensation to which they relate was paid or due. See Recordkeeping Requirements.