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Taxation of Employee Benefits: North Dakota

Taxation of Employee Benefits requirements for other states

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