What would the IRS flag about how you've been paying your nanny?

North Dakota has one of the lowest income tax burdens in the country, with the first $49,575 exempt from 2026 tax liability and a maximum rate of 2.5%. No disability or paid leave requirements apply.

State unemployment insurance (SUI). North Dakota requires household employers to register and pay state unemployment tax once wages cross its applicable threshold. New York and DC use $500 per quarter; many states use $1,000. New-employer rate range in North Dakota: 0.08% - 9.41%. Missing the registration is one of the most common audit findings — the simulator flags it when your quarterly wages cross the applicable threshold.

State income tax withholding. North Dakota has state income tax, which means you may need to withhold from your nanny's paycheck (it depends on whether they elect withholding on the state W-4 equivalent). If they do, you owe quarterly remittance and an annual state W-2 reconciliation. The simulator flags missing withholding setup or unreported wages.

Minimum wage. The minimum wage in North Dakota is $7.25/hour (federal). If you paid below this rate, the simulator surfaces it as a Department of Labor exposure — separate from tax findings, and often more expensive (back wages plus liquidated damages).

Run the audit above to see exactly which North Dakota rules apply to your situation — each finding comes with dollar exposure and a concrete next step.