The bill amends section 57-38-59 of the North Dakota Century Code, which pertains to the withholding of wages from employees for state income tax purposes. It establishes that employers must deduct and withhold a percentage of wages based on the total amount required under the Internal Revenue Code, ensuring that the withheld amount closely approximates the income tax liability owed to the state. Additionally, the tax commissioner is granted the authority to adjust withholding percentages if they are found to be disproportionate to the actual tax liability.

A significant insertion in the bill specifies that, unless directed otherwise by a taxpayer, employers are prohibited from withholding or deducting tax from wages that fall under a specific provision (subdivision g of subsection 2 of section 57-38-30.3) for income tax purposes. This change aims to clarify the withholding process and protect certain wages from being taxed. The bill is set to take effect for taxable years beginning after December 31, 2025.

Statutes affected:
PREFILED: 57-38-59
Enrollment: 57-38-59
INTRODUCED: 57-38-59