Payroll Information

WSI premium is based on the amount of remuneration paid to workers during the policy period. Remuneration means money or substitutes for money. North Dakota law prohibits employers from deducting wages or otherwise billing workers for any part of the premium.

Report gross earnings of all employees including:

• Commissions
• Bonuses
• Extra pay for overtime
• Reportable tips
• Pay for holidays, vacations, or sick leave
• All pretax deductions for amounts allocated by the employee for deferred compensation. Employee contributions to Cafeteria plans, 401K's, annuity plans, medical reimbursements, flex accounts, Davis-Bacon wages, or any similar program
• Value of meals, lodging (rent value of a house or apartment), or other gratuities received by a worker as part of pay

Do not include dismissal or severance pay. 

WSI uses your payroll information to calculate the premium you pay for workers’ compensation insurance. Upon reviewing the payroll detail, premium is calculated by applying the rate for a class of employment to the amount of taxable payroll in that classification. If you have several classifications, your premium is the sum-total of all classifications.

The maximum taxable payroll for each worker is capped at 70% of the state’s average annual wage. This amount is commonly referred to as the “wage cap.” The average annual wage cap becomes effective on July 1 of each year.

An employer who opens an account with WSI is obligated to report all wages earned in North Dakota to WSI. See North Dakota Century Code § 65-08-01 (5).

Some classes of employment are inherently more hazardous than others, and WSI's rate class system reflects that risk. Based on the risk, each class of employment is assigned a classification. In turn, each classification is assigned a rate. These rates reflect factors such as occupational risk, medical costs, and benefit levels. 

See Forms & Resource section for current the classification manual.

WSI utilizes quarterly payroll reporting for all employers with a requirement of coverage in order to:

• Ensure an accurate payroll estimate to eliminate unexpected premium costs at the end of the policy period
• Allow employers to review, update, or add rate classes throughout the year
• Align payroll reporting with other state and federal agencies
• Expedite account renewal

(Accounts with elective coverage only are eligible for annual reporting.)

Payroll reporting is completed in WSI's online portal, myWSI. Notifications are sent to users with payroll reporting access when reporting is available.

To submit a payroll report:

• Go to mywsi.workforcesafety.com
• Select Sign In and enter North Dakota login information
• Select Payroll Reporting

You can import employee details from a file using WSI's excel template (available to download in the myWSI portal) or by keying in the information for each employee manually. Reports are due 30 days after the account's reporting period end date. Click here to learn more about online payroll reporting.

Failure to submit payroll reports on time may result in penalties. Continued failure to report payroll may lead to additional penalties and an “uninsured” status.

When a new account is established, employers are billed premium based on an estimate of payroll for the next 12 months. At the end of the policy period, the premium is reconciled using the actual wages reported for the period.

WSI uses reported payroll to estimate premium for the next policy period. If you anticipate a significant increase or decrease in payroll compared to the submitted amounts, note this by submitting the Additional Information Form found on the Submission Confirmation page of the payroll report to ensure appropriate billing. You can also contact customer service at 800-777-5033, or email [email protected] to report the change.

As a general rule, when a business organizes formally as a corporation, an LLC, or some similar entity, one of the major benefits it receives is the protection of the owner's personal assets against business losses.

North Dakota workers’ compensation law, however, permits WSI to pursue individuals personally for the debts of their business. North Dakota Century Code § 65-04-26.1 provides for the assessment of personal liability against officers and directors of a corporation, managers and governors of a limited liability company, partners in a limited liability partnership, and employees who own 20% of the business and have control over the reporting of payroll and payment of premiums to WSI. Once liability is assessed and the employer’s appeal time has expired, WSI may pursue the debt through a civil lawsuit.