What is the passthrough withholding requirement?
An S corporation, or a limited liability company filing as an S corporation, is required to withhold North Dakota income tax for every nonresident individual shareholder whose distributive share of North Dakota income is $1,000.00 or greater. The S corporation must withhold at the highest individual income tax rate. The applicable rate for each year is set out in Form 60 and its instructions. The total withholding must be paid in full with the S corporation return when it is filed.
