Instructions For North Dakota Withholding E-File Handbook For Ach Credit - 2001 Page 2
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6North Dakota Withholding E-File Handbook for ACH Credit
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INTRODUCTION
ACH debit is an electronic transaction allowing
the State to withdraw funds from your business’
The Office of State Tax Commissioner has
bank account. You must provide the State the
established a program for businesses to file
banking information to withdraw the funds from
their state income tax withholding returns (Form
your business’ account. To initiate an ACH debit
306) electronically through Electronic Funds
for income tax withholding, you only need a touch
Transfer (EFT). Advantages to using EFT are:
tone telephone to call toll free to the State’s
Withholding TeleFile System and specify the
! The cost and time to write checks are eliminated.
withdrawal amount and the date for withdrawal
(up to the due date). The State, as the originator
of the transaction, pays the bank fees to withdraw
! You have control over the movement of your
the funds through an ACH debit. For a no cost
money.
solution to pay your income tax withholding
through EFT use the State’s Withholding TeleFile
! You are assured that the funds are received on
System.
time, every time.
This Withholding E-File Handbook provides
instructions for ACH credit only. If you wish to
! The payment and return information are sent in
use North Dakota’s convenient Withholding
the same transaction, so filing your income tax
TeleFile option, call our Withholding Tax Section
withholding return is completely paperless.
toll free at 1-877-638-2966, in the Bismarck-
Mandan area at 701-328-3125, or check out our
web site: for more
information and obtain a copy of the North
PARTICIPATION
Dakota Withholding E-File Handbook For ACH
Any employer who currently files income tax
Debit.
withholding returns is eligible to apply for
Withholding E-File.
REGISTRATION REQUIREMENTS
Is participation in the North Dakota Withholding
E-File program voluntary?
Do I have to register to electronically file and
pay my state income tax withholding?
Completely. You may continue filing your income
tax withholding using a paper return, if that’s what
Yes. If you are currently registered with us to
you prefer. E-File is an “option” that many North
report the state income tax withholding, you only
Dakota businesses have requested. You may
need to complete and sign a Form 301-EF,
already be using a similar electronic system to file
Application for Withholding Tax E-File
your federal withholding taxes.
Participation. A copy of the form is included in
this handbook. Select the payment option you
want, either ACH credit or ACH debit, and mail or
PAYMENT OPTIONS
fax the completed form to our office.
ACH credit (Automated Clearing House credit)
An ACH credit “prenote” (zero transaction) is
and ACH debit are the two EFT payment methods
required prior to approving your application. This
accepted for paying your state income tax
is to test the accuracy of account numbers,
withholding electronically.
routing transit numbers, addenda record formats
and other features of the processing system
ACH credit is an electronic transaction where you
before any funds are actually transferred. You
instruct your bank to debit your business’ bank
will be notified when to initiate the prenote and
account and credit the State’s bank account.
provided the state file layout for the ACH credit
Since you are the originator of the transaction, you
addenda record. For more information on the
must pay the fees charged by the bank for any
prenote process and the state file layout, see the
setup costs and for each ACH credit transaction
section titled “ACH Credit Prenote”.
initiated. Check with your bank to be sure they can
initiate an ACH credit for you. See the section
Please allow up to four weeks to process your
titled “Initiating an ACH credit” for further
application.
information on what is required.
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