ND · Cost to hire 2026
How much does it cost to hire an employee in North Dakota?
The real first-year cost of a W-2 hire in North Dakota is the ongoing fully-loaded payroll plus the one-time spend to recruit, onboard, and equip the person. A $75,000 hire runs about $109,544 in year one.
Budgeting the first-year cost to hire a W-2 employee in North Dakota means stacking two layers: the ongoing fully-loaded payroll you carry every year, plus the one-time outlay of recruiting, onboarding, training, and equipping a new worker (HiringMath defaults to roughly $8,500 in one-time hiring costs and about $1,500 a year in software per seat). On the recurring side, North Dakota's new-employer SUI rate is 1.03% on the first $45,100 of wages, a maximum of $464.53 per worker, layered on top of federal FICA (6.2% Social Security plus 1.45% Medicare) and 0.6% net FUTA. The state does levy an income tax on wages, so withholding setup is part of onboarding. One cost unique to North Dakota: workers' compensation is a state monopoly through Workforce Safety & Insurance, with no private-carrier shopping, and construction new-employer WSI runs 9.69%. For roles in Bakken energy, Fargo's financial-services corridor, agriculture, or advanced manufacturing, year-one cost runs well above salary once these recurring and one-time items are summed.
Estimate a North Dakota hire
Pre-filled with North Dakota's 1.03% new-employer SUI rate. Adjust salary, benefits, and one-time costs to fit your hire.
First-year cost of a $75,000 hire in North Dakota
| Recurring (annual) | |
| Base salary | $75,000 |
| Employer payroll taxes | $6,244 |
| Workers' comp | $750 |
| Benefits | $10,050 |
| Overhead | $7,500 |
| Software & toolsrecurs yearly | $1,500 |
| One-time (year one) | |
| Recruiting | $4,000 |
| Onboarding & training | $2,000 |
| Equipment & setup | $2,500 |
| Ongoing annual cost (year 2+) | $101,044 |
| Total first-year cost | $109,544 |
First-year cost by salary in North Dakota
| Base salary | First-year total |
|---|---|
| $50,000 | $79,132 |
| $75,000 | $109,544 |
| $100,000 | $139,957 |
What drives the cost in North Dakota
North Dakota's new-employer SUI rate is 1.03% on the first $45,100 of wages, a maximum of $465 per worker per year (below the national average of 2.07%). That sits on top of 7.65% employer FICA and 0.6% FUTA. North Dakota taxes wage income, which the employee pays, so it adds administration but not direct employer cost.
Extra employer costs: State-monopoly workers' comp (WSI); construction new employer 9.69%.
Compare and dig deeper
Weighing an employee against a contractor? See the North Dakota W-2 vs 1099 comparison for the breakeven contract rate. Compare neighboring markets, including Alaska, Delaware, Idaho, Iowa, or read how much it costs to hire an employee nationally.
Cost-to-hire FAQ for North Dakota
- What is the maximum SUI cost per employee in North Dakota?
- At the new-employer rate of 1.03% applied to the first $45,100 of wages, the most you pay in state unemployment insurance is $464.53 per worker per year. Once a worker's pay clears that wage base, no further SUI accrues. Experience rating adjusts the rate over time based on your claims history.
- Do North Dakota workers' comp rules raise the first-year cost to hire?
- Yes. North Dakota runs a state-monopoly workers' compensation system through Workforce Safety & Insurance, so you cannot shop private carriers to lower the premium. Office roles carry modest rates, but construction new employers face a 9.69% WSI rate, which materially increases year-one cost for build-out or trades hires.
- What one-time costs should I budget beyond salary for a North Dakota hire?
- Beyond ongoing payroll taxes, plan for one-time recruiting, onboarding, training, and equipment and setup, which HiringMath defaults to about $8,500, plus roughly $1,500 a year in per-seat software. These front-loaded costs land in year one and are often larger than the first year of SUI.