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REMOTE EMPLOYEES

Hiring a remote employee in North Dakota

Your company is in another state and one employee lives and works from home in North Dakota. Which state's taxes apply, unemployment, paid leave and North Dakota's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated July 8, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

North Dakota at a glance

Income tax
North Dakota withholding
Reciprocity
With Minnesota and Montana
Unemployment
$46,600 wage base, 1% new employer
Paid leave
None
New hire report
Within 20 days

Which state's taxes apply

Work state
North Dakota taxes wages for work done in North Dakota. Withhold North Dakota income tax on the employee's wages.Source: North Dakota Office of State Tax Commissioner, Income Tax Withholding (opens in a new tab), checked October 5, 2026
Withholding form
Federal Form W-4Source: North Dakota Office of State Tax Commissioner, Income Tax Withholding (opens in a new tab), checked October 5, 2026
Reciprocity
If your office is in Minnesota: North Dakota residents working there are withheld for North Dakota, with Form MWR. If your office is in Montana: North Dakota residents working there are withheld for North Dakota, with Form MW-4, line 5.Source: Minnesota Department of Revenue, 2026 Minnesota Income Tax Withholding Instruction Booklet and Tax Tables (PDF) (opens in a new tab), checked October 5, 2026; Montana Department of Revenue, North Dakota Reciprocity Agreement (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in North Dakota for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in North Dakota
North Dakota has a 20-day rule: no North Dakota withholding for a nonresident who works in North Dakota 20 days a year or fewer, when the employee's home state has no income tax or a similar exclusion, if the rule's other conditions are met.Source: North Dakota Century Code, chapter 57-38, section 57-38-59.3 (PDF) (opens in a new tab), read from an archived copy dated July 8, 2026 (opens in a new tab)

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • North Dakota: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

North Dakota: the employee works from home there, so the work is localized in North Dakota.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in North Dakota, so the work is localized in North Dakota: pay North Dakota unemployment tax, not your company state's.

Agency
Job Service North Dakota, Unemployment Insurance TaxSource: Job Service North Dakota, Learn about taxes (opens in a new tab), checked October 5, 2026
Wage base
$46,600 IndexedSource: Job Service North Dakota, 2026 Unemployment Insurance Tax Rate Schedules (PDF) (opens in a new tab), checked October 5, 2026
New employer rate
1% 1.00% non-construction for a positive-account employer (6.07% if the employer's own account is negative); construction 9.67% Surcharges included Construction 9.67%Source: Job Service North Dakota, 2026 Unemployment Insurance Tax Rate Schedules (PDF) (opens in a new tab), checked October 5, 2026

Open the account: North Dakota payroll tax registration

North Dakota has no paid leave program funded through payroll.

North Dakota employer rules

Employment law applies where the employee works, so these follow the employee into North Dakota.

Final pay
Fired: Next regular payday, by certified mail to an address the employee gives unless otherwise agreed Quit: Next regular paydaySource: ND Department of Labor and Human Rights, Wage and Hour FAQ (opens in a new tab), checked October 5, 2026
Pay frequency
At least once each calendar month, on regular paydays set in advanceSource: ND Department of Labor and Human Rights, Wage and Hour FAQ (opens in a new tab), checked October 5, 2026
Pay notice
No written pay notice at hire. A pay-rate change must be notified to the employee before the work is done, a tip credit must be explained in advance, and every payday needs a stub showing hours, rate and deductions.Source: N.D. Admin. Code ch. 46-02-07 (Minimum Wage and Work Conditions Order) (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the start date.Source: ND Health and Human Services, Child Support: New Hire Reporting, Reporting Requirements (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate; the federal Form I-9 applies.Source: North Dakota Century Code, Title 34 (Labor and Employment), chapter index (opens in a new tab), checked October 5, 2026
Sick leave
No state sick leave law.Source: ND Department of Labor and Human Rights, ND Minimum Wage & Work Conditions Summary Poster (PDF) (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in North Dakota, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on North Dakota

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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