The North Dakota State Office of the Tax Commissioner announced that due to the passage of the federal Tax Cuts and Jobs Act (the tax reform bill) it will delay its issuance of the 2018 income tax withholding tables.

Certain changes contained in the federal legislation will affect how North Dakota income tax withholding is calculated.

Employers are instructed to use the 2017 income tax withholding tables for wages paid on or after January 1, 2018 until such time as the 2018 income tax withholding tables are available and the supplemental rate of withholding is 1.84%.

North Dakota 2017 Forms W-2 due by January 31, 2018

As a reminder, Forms W-2/1099 for calendar year 2017 must be filed with the Department no later than January 31, 2018.

North Dakota employers with 250 or more Forms W-2 must file them electronically over the Taxpayer Access Point (TAP) system or by secure email to magmedia@nd.gov. Form 307, Annual Transmittal of Wage and Tax Return need not be filed if Forms W-2 are filed electronically.

Every person making certain payments must file information returns (i.e., Forms 1099) if both of the following circumstances apply:

1. The person resides, owns property, or carries on a business in North Dakota, and

2. The person is required to file a 1099, 1042-S or W-2G to report the same payment for federal purposes.

For more information, see the Department's website. See also the Department's publication, Guideline — Income Tax Withholding.

Ernst & Young LLP insights

The IRS also announced that it will delay release of its 2018 federal income tax withholding tables and related guidance until January 2018, with employer implementation required sometime in February 2018.

North Dakota is one of many states that updates its income tax withholding tables each year. Several of these states have already released their 2018 income tax withholding tables.

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