TAXES 16-15, North Dakota State Income Tax Withholding

Published: March 17, 2016
Effective: Pay Period 06, 2016

Summary

The income tax withholding formula for the State of North Dakota will include the following changes:

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

ND

State Tax Withholding State Code:

38

Acceptable Exemption Form:

None

Basis for Withholding:

Federal Exemptions

Acceptable Exemption Data:

None

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

A State tax certificate is not required since Federal exemptions are used in the computation of the State formula.

Withholding Formula (Effective Pay Period 06, 2016)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guidelines and subtract this amount from the annual wages to compute the taxable income:

    Exemption Allowance = $4,050 x Number of Exemptions

  6. Apply the taxable income computed in step 5 to the following table(s) to determine the annual North Dakota income tax withholding:

    Single or Head of Household Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $4,300

    $0.00

    Over $4,300 but not over $41,000

    $0.00 plus 1.10% of excess over $4,300

    Over $41,000 but not over $83,000

    $403.70 plus 2.04% of excess over $41,000

    Over $83,000 but not over $192,000

    $1,260.50 plus 2.27% of excess over $83,000

    Over $192,000 but not over $413,000

    $3,734.80 plus 2.64% of excess over $192,000

    Over $413,000

    $9,569.20 plus 2.90% of excess over $413,000

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $10,000

    $0.00

    Over $10,000 but not over $71,000

    $0.00 plus 1.10% of excess over $10,000

    Over $71,000 but not over $135,000

    $671.00 plus 2.04% of excess over $71,000

    Over $135,000 but not over $240,000

    $1,976.50 plus 2.27% of excess over $135,000

    Over $240,000 but not over $420,000

    $4,360.10 plus 2.64% of excess over $240,000

    Over $420,000

    $9,112.10 plus 2.90% of excess over $420,000

  7. Divide the annual North Dakota income tax withholding by 26 and round to the nearest dollar to obtain the biweekly North Dakota income tax withholding.
  8. Add additional amount or percentage elected by the employee to the pay period tax calculated in the above step and round to the nearest dollar to determine the amount of tax to be withheld for this pay period.

Additional Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the NFC homepage. Click the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.