22 January 2019 North Dakota releases 2019 income tax withholding tables; 2018 Form W–2 filing reminders The North Dakota State Tax Department released the 2019 Income Tax Withholding, Rates and Instructions for Wages Paid in 2019, including the percentage method for North Dakota state income tax withholding for use with wages paid on or after January 1, 2019 (annual table reproduced on the following pages). The 2019 wage–bracket withholding tables are also available on the North Dakota State Tax Department website. As we reported previously, the Department delayed the issuance of the 2018 income tax withholding tables due to the passage of the federal Tax Cuts and Jobs Act (the tax reform bill).(Tax Alerts 2018–0010 and 2018–0444) Supplemental wages, as defined for federal income tax purposes, are treated as supplemental wages for North Dakota income tax purposes. This includes bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, and any other payment that is considered a supplemental wage for federal income tax withholding purposes. The method for calculating the amount of North Dakota income tax to withhold from supplemental wages is similar to the federal income tax withholding method. The amount of North Dakota income tax to withhold from supplemental wages depends on whether the supplemental wages are identified as a separate payment from regular wages. If supplemental wages are combined and paid with regular wages, and the amounts of each are not separately identified, calculate the amount of North Dakota income tax to withhold from the combined amount using any of the regular methods allowed — e.g., the percentage method. If supplemental wages are paid separately from regular wages (or are combined and paid with regular wages but each are separately identified), calculate the amount of North Dakota income tax to withhold using one of the applicable methods below:
Rounding to the nearest dollar is strongly recommended, but not required. The 2019 annual withholding allowance amount is $4,200.00.
For a copy of the 2019 withholding tax guide or more information, contact the North Dakota State Tax Department at +1 701 328 1248, by e–mail at withhold@nd.gov or see the Department's website at www.nd.gov/tax. See also the Department's publication, Guideline — Income Tax Withholding. As a reminder, Forms W–2/1099 with income tax withheld for calendar year 2018 must be filed with the Department no later than January 31, 2019. 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:
For more information, see the Department's website. See also the Department's publication, Guideline — Income Tax Withholding.
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