Question 1

Is PEO licensing required in North Dakota?

Accepted Answer

Yes. Anyone providing professional employer services must be licensed through the Office of the Secretary of State under NDCC chapter 43-55 — even a PEO with just one employee in the state. The license costs $1,000, is valid for one year, and must be renewed within 60 days before expiration.

Question 2

What bond does a PEO need in North Dakota?

Accepted Answer

The required surety bond or irrevocable letter of credit is the lesser of $100,000 or 5% of total wages reported on the PEO's most recent quarterly contribution and wage report filed with Job Service North Dakota. A PEO with no report on file posts the flat $100,000. If the bond lapses, the license is revoked the following day and can only be restored with a whole new application plus another $1,000 fee.

Question 3

How does PEO license renewal work in North Dakota?

Accepted Answer

Licenses are valid for one year and must be renewed within 60 days before expiration, with the same bond certificate, quarterly wage report, and $1,000 fee reapplied. A lapse triggers the full re-application route — the license is revoked the following day and restored only through a new application and another fee.

Question 4

What is the SUI taxable wage base in North Dakota?

Accepted Answer

North Dakota's 2026 taxable wage base is $46,600, up from $45,100 in 2025. The new employer rate is roughly 1%, with negative-balance schedules running as high as 6.07%.

Question 5

What is the minimum wage in North Dakota?

Accepted Answer

The minimum wage in North Dakota is $7.25, the federal floor, since the state sets no higher rate.

Question 6

How does workers' compensation work with a PEO in North Dakota?

Accepted Answer

Workers' compensation is provided by Workforce Safety & Insurance (WSI), the exclusive, state-monopoly provider. There is no private-carrier market to shop, so the comp line sits entirely outside a rate-shopping conversation.

North Dakota PEO FAQs: Licensing, Compliance, and Costs

Frequently Asked Questions