North Dakota

Employer Costs, Take-Home Pay, and Tax Wedge for an Average Manufacturing Wage Worker in NORTH DAKOTA

Annual Amount


Total Cost to Employer*



Take-Home Pay



Take-Home Pay, % of Employer Costs



Tax Wedge*



Tax Wedge, % of Employer Costs



Gross Earnings


Taxes Withheld from Worker's Paycheck

Social Security/Medicare Payroll Tax


Federal Income Tax


State Income Tax




Total Taxes Withheld


Hidden Taxes Paid by Employer on Worker's Behalf

Social Security/Medicare Payroll Tax


Workers' Compensation Contribution



State Unemployment Insurance Tax



Federal Unemployment Insurance Tax



Total Employer-Paid Taxes


Employer-Paid (hidden) Share of the Tax Wedge



Source: Dean Stansel, "The Hidden Burden of Taxation: How the Government Reduces Take-Home Pay," Cato Institute Policy Analysis No. 302, April 15, 1998.

*Total cost to employer does not include the cost of fringe benefits (such as employer contributions to private health insurance plans and pensions) and tax and regulatory compliance. The tax wedge does not include the host of other taxes--property taxes, sales taxes, gas taxes, cigarette taxes, etc.--that workers must pay with their remaining take-home pay.
**North Dakota is one of the seven jurisdictions in which the workers' compensation system does not allow private insurers to provide workers' compensation insurance. Instead, employers must pay into a monopolistic state fund. As a result, comparable estimates of the workers' compensation costs were not available. Therefore, the estimates for total employer costs and the tax wedge in these states are not directly comparable because they do not include an estimate for workers' compensation costs (which were, on average, $1,395). These states were not included in the rankings for those items.

Last Updated on 4/8/98
By Mark LaRochelle