The bill amends section 57-38-59 of the North Dakota Century Code, which pertains to the withholding of income taxes from employee wages. It establishes that employers must deduct and withhold a percentage of wages as determined by the tax commissioner, based on the total amount required under the Internal Revenue Code. The bill also allows the tax commissioner to adjust the withholding percentage if it proves disproportionate to the actual tax liability. Additionally, the tax commissioner has the authority to adopt tax tables to facilitate the withholding process.

A significant insertion in the bill specifies that, unless instructed otherwise by a taxpayer, employers are prohibited from withholding or deducting tax from wages described under a specific subdivision of another section. This change aims to clarify the withholding process for certain types of wages. The bill is set to take effect for taxable years beginning after December 31, 2025.

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