Taxation of Employee Benefits: North Dakota
Federal law and guidance on this subject should be reviewed together with this section.
Author: Rena Pirsos, XpertHR Legal Editor
- In North Dakota, salary deferrals to Internal Revenue Code § 125 cafeteria plans are subject to withholding for unemployment insurance tax purposes. See Salary Deferrals to IRC § 125 Cafeteria Plans.
- Same-sex marriage is legal in North Dakota and, based on the US Supreme Court ruling in Obergefell v. Hodges, the value of health benefits provided to an employee's same-sex spouse, and/or their dependents, is not subject to income tax withholding. However, the value of such benefits provided to an employee's same-sex civil union partner or domestic partner are taxable. See Same-Sex Couple Health Insurance Benefits