What would the IRS flag about how you've been paying your nanny?
Answer 6 questions. We'll run the same checks a tax professional would and show you the specific findings — with dollar exposure and how to fix each one.
Educational only. Not tax, legal, or accounting advice. Consult a licensed tax professional for your specific situation.
How North Dakota household employer rules differ
North Dakota has one of the lowest income tax burdens in the country, with the first $48,475 exempt from tax and a maximum rate of just 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 you cross the federal $1,000/quarter threshold (some states use a lower threshold — California is $750/quarter, New York and DC are $500/quarter). 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 as soon as your quarterly wages cross the threshold.
State income tax withholding. North Dakotahas 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.
North Dakota household employer questions
The state-specific rules behind every finding.