How Much Does It Cost to Hire an Employee in North Dakota? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in North Dakota.
Hiring a $60,000/year employee in North Dakota costs employers approximately $65,834 total in 2026, including $5,834 in mandatory payroll taxes and workers' comp. That's a 1.1x multiplier on base salary.
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Total Cost at $60K Salary
$65,834
Cost multiplier: 1.1x
SUTA Rate (Mid)
1.06%
Wage base: $46,600
Workers' Comp Rate
1.18%
Has state income tax
Key Insight
For a $60,000 salary in North Dakota, employers pay $5,834 in mandatory taxes — a 1.1x cost multiplier. North Dakota's SUTA rate (1.06%) is below the national average of 1.70%.
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Use our interactive calculator pre-loaded with North Dakota's tax rates. Adjust salary, benefits, and overhead to get your true cost.
North Dakota Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.08% – 9.75% |
| SUTA New Employer Rate (typical) | 1.06% |
| SUTA Wage Base | $46,600 |
| Workers' Compensation (avg) | 1.18% of payroll |
| State Income Tax | Yes |
Example Employer Costs in North Dakota
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (ND) | $424 | $494 | $494 |
| Workers' Comp | $472 | $708 | $944 |
| Total Employer Taxes | $3,998 | $5,834 | $7,600 |
| Total Cost (salary + taxes) | $43,998 (1.1x) | $65,834 (1.1x) | $87,600 (1.09x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and North Dakota Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How North Dakota Compares
North Dakota's typical SUTA rate of 1.06% is below the national average of ~1.70%. However, with a wage base of $46,600, which is well above the federal minimum of $7,000, the effective SUTA cost per employee can be significant.
Workers' compensation at 1.18% of payroll is below the national average of ~1.20%.
North Dakota Employer Environment
Below-average employer costs- State income tax applies — factor into total compensation packages
- Low SUTA rate (1.06% on $46,600 wage base) — below-average unemployment insurance cost
- Workers' comp rate 1.18% — near national average, varies by industry classification
North Dakota's below-average SUTA and competitive workers' comp rates translate to a meaningful cost advantage per employee compared to the national norm, particularly for labor-intensive businesses.
North Dakota Employment Profile
North Dakota uses a state-managed workers' compensation system (WSI) and has a $46,600 SUTA wage base, reflecting full reserve funding from its energy-sector boom years.
oil & gas (Bakken shale), agriculture, healthcare
North Dakota's energy sector wages set the regional floor; even service employers offer above-average pay to compete with oil patch wages during boom cycles.
Cost at Different Salary Levels in North Dakota
Total employer cost including all mandatory payroll taxes
Compare North Dakota With
Employee Costs in Other States
Hiring Cost by Industry in North Dakota
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in North Dakota
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $99,420 | 26,170 |
| Architecture and Engineering | $82,890 | 5,970 |
| Legal | $81,430 | 2,120 |
| Computer and Mathematical | $81,430 | 7,640 |
| Healthcare Practitioners and Technical | $77,750 | 29,700 |
| Business and Financial Operations | $73,800 | 20,690 |
| Life, Physical, and Social Science | $67,180 | 4,440 |
| Installation, Maintenance, and Repair | $62,210 | 22,660 |
States With Similar Hiring Costs
These states have SUTA rates close to North Dakota's 1.06% — good for cost benchmarking.
North Dakota Business Resources
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Simplify Payroll in North Dakota
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