Instructions For North Dakota Withholding E-File Handbook For Ach Credit - 2001 Page 4
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6North Dakota Withholding E-File Handbook for ACH Credit
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standard format that has been adopted for tax
What if I want to stop filing my state income tax
payments by the National Automated Clearing
withholding returns electronically and go back
House Association (NACHA). The bank usually
to a paper return?
prepares the CCD+ entry detail record, but you
We hope you will never want to return to filing
will need to provide the bank the TXP addenda
paper returns, but if you find that the ACH credit
record layout and tax account information
payment method does not meet your business
required for North Dakota. If your business is
needs, you need to notify us in writing that you
equipped to also create the CCD+ entry detail
wish to terminate your electronic filing option at
record to send to your bank, be sure the
least 30 days prior to when the termination is to
Transaction Code field contains the prenote code
take effect. We will acknowledge your request,
“24”.
and begin sending you paper tax returns again.
What if I quit or change my Payroll Service?
INITIATING AN ACH CREDIT
You must complete a new Form 301-EF advising
How do I initiate an ACH credit?
us of the change. This is very important if the
bank account used to make your tax payments is
Once we have notified you that you can begin
the Payroll Service’s account. We need to update
filing your income tax withholding return
our records so future electronic filings are
electronically, you initiate the tax payment and
accepted. A prenote process will need to be
addenda record through your bank. The TXP
performed again.
addenda record provides the return information
necessary to identify the payment and properly
Do I have to do anything if the business retains
post it to your income tax withholding account.
the same account numbers, but the ownership
One transaction does it all — files your return and
takes care of your tax payment.
or corporate officers have changed?
Yes. You have to complete a new Form 301,
You must provide your bank the filing information
Application to Register for North Dakota Income
required to complete the TXP addenda record.
Tax Withholding, each time there is a change in
The record format for the TXP addenda record is
the corporate officers responsible for the state
included in this handbook. [Note: If your
income tax withholding returns.
business is equipped to prepare the CCD+
detail entry record instead of the bank
preparing it, be sure the Transaction Code
ACH CREDIT PRENOTE
field contains “22”.]
What is an ACH credit prenote?
You will also be provided the TXP record format
An ACH credit prenote is a test transaction to
when instructed to initiate an ACH credit prenote.
ensure the record format you are using is correct
In order to receive the state’s bank routing/transit
and will properly post your payment to your
and bank account numbers you must complete a
income tax withholding account with the state.
Withholding Tax E-File Participation application
(Form 301-EF).
Is a prenote required?
Yes, when you submit your completed application
Is there a cost to initiate an ACH credit?
and select ACH credit as your payment method,
Yes. You must pay the fees charged by your
we will notify you by letter that a “zero” prenote is
bank for any setup costs and for each ACH credit
required and provide you the state’s TXP addenda
transaction initiated.
record format and routing/transit and bank
account numbers for you to instruct your bank.
What if I do not owe any tax for a specific
The record format for the TXP addenda record is
reporting period?
also included in this handbook.
You are still required to send a “zero” ACH credit
How is the prenote initiated?
transaction with the TXP addenda record, which
constitutes your return.
You must initiate the prenote with your bank. The
bank originates your payment using the “Cash
Concentration or Disbursement plus Tax Payment
Addendum” (CCD+TXP) format. This format is the
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