MINNESOTA / MONTANA RESIDENTS Directions: To advance to next slide click left mouse button, to view previous slide click the right mouse button.

Minnesota / Montana Residents North Dakota law provides that wages paid to an eligible resident of Minnesota or Montana for services performed in North Dakota are exempt from North Dakota income tax withholding This is called Withholding Reciprocity North Dakota Form NDW-R is required to take advantage of withholding reciprocity. 35

North Dakota tax is deducted by default unless a Form NDW-R is filed. Paycheck Example Without NDW-R Minnesota/Montana Resident not filing NDW-R Gross Pay: Fed tax: Social Sec: Medicare: $1000.00 $117.03 $62.00 $14.50 N.D. Tax: $10.00 Net Pay: $796.47 North Dakota tax is deducted by default unless a Form NDW-R is filed. 35

Paycheck Example With NDW-R Filing Minnesota Resident having filed NDW-R Gross Pay: Fed tax: Social Sec: Medicare: $1000.00 $117.03 $62.00 $14.50 MN Tax: $48.48 Net Pay: $757.99 Minnesota residents who submit Form NDW-R will have Minnesota tax deducted from their payroll. 35

Paycheck Example With NDW-R Filing Montana Resident having filed NDW-R Gross Pay: Fed tax: Social Sec: Medicare: $1000.00 $117.03 $62.00 $14.50 $806.47 Net Pay: Montana residents who submit Form NDW-R will have no state tax deducted from their payroll. 35

NDW-R Form Complete NDW-R Form Submit Form to UND Payroll Office – 3rd Floor, Twamley Hall NDW-R Form expires on February 28 of the next year Submit a new NDW-R Form on or before February 28 each year following. 35

Minnesota Form W-4MN “Minnesota W-4” Applies to Minnesota residents only In certain circumstances completion of the W- 4MN is required by the Minnesota Department of Revenue. 35

W-4MN Form Required If You… Claim fewer MN withholding allowances than federal allowances Claim more than 10 MN withholding allowances Want additional MN withholding deducted from your pay each pay period Claim to be exempt from either federal or MN withholding 35

W-4MN Form Not Required If You… If you are claiming the same number of MN allowances as federal and the number claimed is 10 or less, you do NOT need to complete the W-4MN Most people are not required to file form W-4MN 35

Should I Complete Form NDW-R? The UND Payroll Office cannot: Give tax advice Advise on if you need to file a tax return Provide advice on which state you are a tax resident of Calculate which state will result in a lower tax liability for you 35

Questions? Payroll tax and withholding questions can be directed to the UND Payroll Office Location: Twamley Hall, Room 312 Phone: 701-777-4227 Humanresources@und.edu 35