North Dakota Credit For Wages Paid to Mobilized Employee

Credit For Wages Paid to Mobilized Employee
Schedule ME - Credit For Wages Paid To Mobilized Employee (2023)
CREDIT FOR WAGES PAID TO MOBILIZED
EMPLOYEE

Schedule ME

OFFICE OF STATE TAX COMMISSIONER

2023

SFN 28712 (12-2023)

Attach to Form ND-1,
38, 40, 58 or 60
Social Security Number Or FEIN

Taxpayer's Name As Shown On Return

Name of mobilized employee

Social security number

Employee 1 . . . . . . . . . .
Employee 2 . . . . . . . . . .
Employee 3 . . . . . . . . . .
Employee 1
1. Enter beginning and ending dates for portion of
mobilization period falling into your 2023 tax year 1

Employee 3

Employee 2

From

From

From

To

To

To

2. Amount of wages that you would have paid during
the period of mobilization (shown on line 1) if the
2
employee had not been mobilized . . . . . .
3. Amount of federal active duty wages received by
employee during the period of mobilization (shown
3
on line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Subtract line 3 from line 2. If zero or less, stop
here; you are not eligible for the credit . . .

4

5. Amount of wages that you actually paid during
the period of mobilization (shown on line 1) . . .

5

6. Enter smaller of line 4 or line 5 . . . . . . . . . . .

6

7. Multiply line 6 by 25% (.25) . . . . . . . . . . . . . .

7

8. Maximum credit . . . . . . . . . . . . . . . . . . . . . .

8

9. Credit. Enter smaller of line 7 or line 8 . . . . . . .

9

10. Add the credit amounts on line 9 for all employees and enter result

1,000

1,000

.......................

10

11. Unused credit carryover, if any, from prior tax year(s). If Form 58 or 60 filer, enter -0- . . . . . . . . .

11

12. Total available credit. Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

13. Amount of line 12 used to reduce tax in 2023. See instructions. Enter this amount on the applicable
form below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

If you are filing:

Enter amount from line 13 of this schedule on:

Form ND-1 . . . . . . . . . Schedule ND-1TC, line 13
Form 38 . . . . . . . . . . . Schedule 38-TC, line 11
Form 40 . . . . . . . . . . . Form 40, Schedule TC, line 19, or Schedule CR, Part III, line 19
Form 58 . . . . . . . . . . . Form 58, Schedule K, line 16
Form 60 . . . . . . . . . . . Form 60, Schedule K, line 13
14. Unused credit carryover to 2024. See instructions. If Form 58 or 60 filer, enter zero . . . . . . . . . . . . 14

1,000

	 023 Schedule ME
2
SFN 28712 (12-2023), Page 2

Who is eligible?

You may be eligible for an income
tax credit if you have an eligible
employee who was mobilized for
active duty in the U.S. armed forces
during the tax year.
An eligible employee is an individual
who is:
		 a legal resident of North Dakota,
		 a member of the National Guard
or a reserve component of any
branch of the U.S. armed forces,
and
		 mobilized for federal active duty
under Title 10 of the United States
Code during the employer’s tax
year.
You are eligible for the credit if,
during the period of mobilization:
		 you continue to pay part or all of
the eligible employee’s wages, and
		 the federal active duty wages
received by the eligible employee
are less than the wages that
you would have paid if the
eligible employee had not been
mobilized.
For this purpose, “wages” means the
sum of:
		 gross wages before reduction
by payroll taxes, elective
contributions to a defined
contribution plan, and any other
payroll deduction, plus
		 employer’s contributions to the
employee’s defined contribution
plan.
“Defined contribution plan” means
a 401(k), 403(b), profit-sharing,
stock bonus, money purchase, or
any other plan meeting the definition
of a defined contribution plan under
Internal Revenue Code Section 414.

Specific line instructions
Eligible employee information
Enter the name and social security
number for each eligible employee.
If you have more than three eligible
employees, complete additonal
schedules as needed.

Line 1 - Mobilization period
Enter the beginning and ending dates
during your 2023 tax year that the
eligible employee was in mobilization
status.
Example 1. You file on a calendar
year basis (January through
December), and the eligible employee’s
mobilization period runs from
October 1, 2023, to November 30,
2024. Enter “10/01/2023” and
“12/31/2023” in the spaces for “From”
and “To,” respectively.

amount of military pay received
during the period of mobilization can
be determined from the employee’s
military Leave and Earnings
Statement(s).
Example 4. Assume the same facts as
in Example 3 (in the line 2 instruction).
Based on the employee’s military
Leave and Earnings Statements, the
employee received military wages of
$3,750 during the period October 1,
2023, through December 31, 2023.
Enter $3,750 on line 3.

Example 2. You file on a calendar
basis, and the employee’s mobilization
period began on March 1, 2022,
and ended June 30, 2023. Enter
“1/01/2023” and “6/30/2023” in the
applicable spaces.

Line 5 - Employer’s actual wage
payments
Enter the amount of wages you
actually paid to the eligible employee
during the period of mobilization
(shown on line 1).

The credit is not allowed if no part
of the mobilization period falls
within your 2023 tax year.

Example 5. Assume the same facts as
in Example 3 (in the line 2 instruction).
During the mobilization period, you
continued to pay a reduced gross wage
of $250 plus a 401k contribution match
of $10 on each pay day. Enter $1,560
on line 5. This is the sum of the gross
wages of $1,500 ($250 x 6) plus your
matching 401k contributions of $60
($10 x 6).

Line 2 - Employer’s deemed wages
for mobilization period
Enter the amount of wages you would
have paid to the eligible employee
during the period of mobilization
(shown on line 1) if the employee
had not been mobilized.
Example 3. You are a calendar year
filer, and you have an eligible employee
who was mobilized from October 1,
2023, through December 31, 2023.
Prior to mobilization, you paid the
employee gross wages of $1,500
on the 15th and the last working
day of each month. Under a salary
reduction arrangement, the employee
contributed $60 to a 401k plan each
pay period, which you matched. The
401k contributions were deposited
into the plan account each pay day.
Enter $9,360 on line 2, which is the
amount you would have paid had the
employee not been mobilized. This is
the sum of the gross wages of $9,000
($1,500 x 6) plus your matching 401k
contributions of $360 ($60 x 6).

Line 11 - Prior year carryover
Enter the portion of an unused
mobilized employee income tax credit,
if any, from the 2022 tax year. If filing
Form 58 or 60, enter zero.

Line 3 - Federal active duty pay
Enter the amount of wages the eligible
employee actually received during
the period of mobilization (shown on
line 1) for his or her federal active
duty service. You will need to obtain
this information from the employee or
his or her designated representative,
depending on the situation. The

Line 14 - Carryover to 2024
If the total available tax credit on
line 12 exceeds the amount on line 13,
enter on this line the portion of the
excess that is eligible for carryover to
the 2024 tax year. Unused credits from
the 2021, 2022 and 2023 tax years are
eligible for carryover to 2024. If filing
Form 58 or 60, enter zero.

Line 13 - Current year credit
Enter on this line the portion of the
total available tax credit on line 12
that is being used to reduce the
2023 tax. If there is an unused credit
carryforward from a prior tax year on
line 11, use the credits in the order
that is most beneficial. If the taxpayer
is a partnership, S corporation, or
limited liability company treated like a
partnership or S corporation, enter the
amount from line 12, and skip line 14.