1. MINNESOTA / MONTANA RESIDENTS
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2. 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

3. 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: $
$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

4. Paycheck Example With NDW-R Filing
Minnesota Resident having filed NDW-R
Gross Pay:
Fed tax: Social Sec:
Medicare: $
$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

5. Paycheck Example With NDW-R Filing
Montana Resident having filed NDW-R
Gross Pay:
Fed tax: Social Sec:
Medicare: $
$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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Questions?
Payroll tax and withholding questions can be directed to the UND Payroll Office Location: Twamley Hall, Room 312 Phone: 35