Electronic Funds Transfer Guide Automated Clearing House (ACH) Credit Method Application Form and Instructions Included
| Electronic Funds Transfer Guide Automated Clearing House (ACH) Credit Method Application Form and Instructions Included |
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INTRODUCTION
NOTE - Effective January 1, 2018 all quarterly contribution and wage reports and
payments must be submitted electronically.
Job Service North Dakota (JSND) has developed a program to accept Unemployment Insurance (UI) tax
payments through electronic funds transfer (EFT). EFT reduces both the time and expense involved in
generating and handling paper checks and allows for quicker application of tax payments.
EFT is a method of directing a financial institution to transfer funds from one account to another. Private
business and the federal government have been using EFT technology for many years. For example, the direct
deposit of employees’ wages and Social Security payments are made through EFT. Many corporations also
use EFT to pay their suppliers for goods and services.
The Job Service North Dakota EFT program employs the Automated Clearing House (ACH) credit transaction
method, which is a national standard for the electronic transfer of funds using the ACH network.
The information contained in this program guide is designed to provide you with specific information on our
EFT program. Contents include participation guidelines, registration information, payment method, tax form
filing requirements, standard file and record formats, as well as an application form.
We hope you find this program guide to be a helpful resource and encourage you to become a part of the Job
Service EFT program.
Note: This guide provides instructions and an application form for ACH Credit. You can also download the
guide from our Internet website. The guide is in Adobe Acrobat format. Our web address is www.jobsnd.com.
REGISTRATION
How to register. To register for our EFT program, please complete the Application for ACH Credit Transfer.
Mail your completed form to: Job Service North Dakota, EFT Coordinator UI Tax & Field Services, PO Box
5507, Bismarck, ND 58506-5507. Or you can FAX your form to us by dialing 701-328-1882. Our staff will
review your application and mail or email you a notice confirming your registration. The confirmation notice will
also contain the information you will need in order to make correct EFT transmissions. If you need more
information, please call 701-328-2814.
If you have changes to the EFT such as contact person, mailing address, telephone number, etc. report them
immediately to Job Service North Dakota, EFT Coordinator UI Tax & Field Services, PO Box 5507, Bismarck,
ND 58506-5507 or email at jsuits@nd.gov or fax to 701-328-1882.
Hours of operation. Normal working hours are 8:00 a.m. to 5:00 p.m. Central Time. Fax 701-328-1882 and
email (jsuits@nd.gov) is available for off-hours communication.
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PAYMENT METHOD—AUTOMATED CLEARING HOUSE (ACH) CREDIT
Definition. The ACH Credit method allows you to transfer funds by instructing your financial institution
(technically referred to as the “Originating Depository Financial Institution”, ODFI) to debit your account and to
credit the Job Service North Dakota Unemployment Insurance bank account.
Cost. You must pay any fees charged by your financial institution for ACH Credit transactions.
Record formats. In order to report your tax payment correctly, your financial institution must originate your
payment using the “Cash Concentration or Disbursement” (CCD) format. Check with your financial institution
to make sure they can transfer your tax payment using this record format.
How to report a payment by ACH Credit. Contact your financial institution for specific procedures regarding
the electronic payment of taxes. Before your financial institution can send your payment, you must provide
them with the filing information required to complete the ACH CCD records (i.e., CCD Entry Detail Record
Format (shown on page 4) along with all the information that goes in these records). The record format for the
CCD entry detail is included in this program guide. In order to receive Job Service North Dakota’s bank
routing/transit and bank account numbers you must file your EFT application with Job Service North Dakota.
We will mail or email you a confirmation notice with our bank routing transit number and our designated
account number.
This ACH Credit program guide and your confirmation notice should be taken to your financial institution before
submitting your first payment.
Pre-notifications (Pre-note) and tests. It is strongly recommended that taxpayers make an error-free pre-
note transaction before commencing the electronic transmission of funds to Job Service North Dakota. A pre-
note transaction is a zero-dollar payment in a CCD format. CCD depositors will be notified if errors are found
in pre-note transaction(s) or upon request.
If you do a pre-note it must be done at least 10 calendar days before the first live EFT payment.
Zero-dollar transactions. If you owe no tax on a payment date, you should not send a transaction through the
ACH network. ACH is only for tax amounts due.
Taxpayer/service provider responsibilities. Persons remitting payments electronically should maintain
adequate documentation to substantiate the initiation of an electronic funds transfer for payment of tax for all
electronic funds transfer payment methods.
Taxpayers and service providers who apply to remit using the ACH credit method are responsible for ensuring
that their financial institution can support the ACH credit method for payments to Job Service North Dakota.
Taxpayers and service providers remitting by ACH credit method are also responsible for understanding the
correct usage of the software or the service they use to remit electronically and to submit payment information
contained in the ACH file in the correct format.
Note: Job Service North Dakota is not responsible for instruction on the usage and reliability of the products
and services of financial institutions or other companies, nor for fees charged by financial institutions, service
providers and others.
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Standard Procedures
Payment due date. Your payment due date will remain the same. To be considered timely, your EFT payment
must be received by Job Service North Dakota’s bank no later than the payment due date for the tax period. It
is the taxpayer’s responsibility to determine the transfer deadline required by their financial institution for
acceptance of ACH credit transactions. Check with your financial institution to determine when you should
initiate your payment so it will be received on time.
If a payment due date falls on a legal holiday or weekend, the tax payment must be received on the first
business day after the holiday or weekend. Timely payments are based on the settlement date (the date on
which the tax has been credited). Financial institution holidays in other states may vary. Make sure to check
with your financial institution.
How your payment is applied. If your account has a balance due from a past quarter the current payment
will be used to pay the past due amount first then the balance of the payment will be used to pay the current
quarter. Payments will be applied to penalty first, and then to contributions and interest.
Corrections. If you feel an EFT payment was made in error, contact your financial institution for their
correction procedures. You must also contact our EFT Coordinator at 701-328-2814. Do not attempt to
reverse your transaction.
Incorrect record formats. If you remit a payment with an incorrect format, we may return your payment. A
returned payment may result in it being late and thus subject to an interest charge.
Verification of timely payment. Your financial institution should provide you with verification of transferred
amounts and effective dates. Job Service North Dakota will not verify receipt of routine EFT payments, but will
assist in resolving payment discrepancies.
Proof of payment. If you require proof of payment, it is your responsibility to work with your financial institution
to obtain verification that your funds were transferred from your account into Job Service North Dakota’s
Unemployment Insurance account. Your bank can supply you with a trace number that is generated for the
ACH network.
Duplicate and other erroneous payments. Duplicate payments will be posted to the taxpayer's account, as
will overpayments made to a valid tax account. Payments made in error will also be posted to that account.
Other erroneous payments will be handled on a case-by-case basis.
Refunds and reversals. Refunds will not be issued electronically through the ACH network. No reversals will
be allowed.
Record keeping requirements. Persons remitting electronically should maintain documentation to
substantiate the initiation of an electronic funds transfer for payment of the tax. Mandatory record keeping
requirements for EFT remitters are the same as stated for other payment methods.
FILING YOUR EMPLOYER CONTRIBUTION AND WAGE REPORTS
Quarterly Contribution and Wage Reports must be submitted using electronic reporting methods and sent by the
specified due date.
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ACH CREDIT DETAIL
Record Formats
The following information describes the data contained in the Entry Detail Record. For complete information on
NACHA formats, specifications and definitions, refer to the ACH Rules Book.
You may obtain a copy of the rulebook from your financial institution or Upper-Midwest Automated Clearing
House Association (UMACHA), 5701 Shingle Creek Parkway Suite 450, Brooklyn Center, MN 55430 or 1-800-
348-3692. There may be a charge for this book.
CCD Entry Detail Record Format is used for ACH credit payments with no addenda record.
CCD Entry Detail Record Format
Use this format to create the transaction to pay the tax.
Position Size Contents Date Element Name
1-1 1 6 Record Type Code. Insert the number 6
2-3 2 22 or 24 Transaction Code. Enter the number 22. (24 for a pre-note.)
4-11 8 Numeric Job Service North Dakota’s Bank Routing/Transit Number.
12-12 1 Numeric JSND’s Bank Routing/Transit Number Check Digit.
13-29 17 Alphanumeric JSND’s Bank Account Number (with trailing blanks).
30-39 10 $$$$$$$$¢¢ Total Payment Amount. No decimal. Insert leading zeros.
40-54 15 Numeric Your North Dakota UI Tax Account Number. Insert leading zeros.
55-76 22 Alphanumeric Your business name as provided to the North Dakota UI program
77-78 2 Not used Discretionary Data.
79-79 1 0 Addenda Record Indicator. Insert a zero.
80-94 15 Numeric ACH Trace Number.
Position 1-1 — Record Type Code. This entry will always be 6.
Position 2-3 —Transaction Code. This position will be 22 in all cases unless you are sending a pre-note
when it will be 24. An entry of 22 indicates the transaction is a credit and the payment is going to a checking
account. An entry of 24 indicates that the transaction is a pre-note (test.)
Position 4-11 — Receiving Bank Routing/Transit Number. This eight-digit number identifies Job Service
North Dakota’s bank. We will give you the receiving bank routing/transit number in the confirmation notice for
ACH credit once your EFT application has been received.
Position 12-12 — Receiving Bank Routing/Transit Number Check Digit. This one-digit number identifies
Job Service North Dakota’s bank check digit number. We will give you the receiving bank routing/transit
number check digit in the confirmation notice for ACH credit once your EFT application has been received.
Position 13-29 — Receiving Bank Account Number. This entry identifies the bank where the EFT payments
will be sent. It will be given to you in the confirmation notice. Insert trailing blanks.
Position 30-39 — Amount. This entry is the amount to be posted to the recipient’s account. It must be right
justified and zero filled. Do not insert a decimal point. The last two characters are always cents.
Position 40-54 — UI Tax Account Number. A numeric position that identifies the taxpayer sending the
payment. This number is your North Dakota Unemployment Insurance account number. Its use is essential for
your payment to be properly credited. The tax account number must be right justified and zero filled.
Position 55-76 — Employer Name. Enter your business name in this position. Use the name you have
designated to Job Service North Dakota for Unemployment Insurance purposes. Insert trailing blanks.
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Position 77-78 — Discretionary Data. This two-character position is not used by Job Service North Dakota.
Position 79-79 — Addenda Record Indicator. Always insert a zero, as there will not be an addendum record
with this transaction.
Position 80-94 — Trace Number. A number added to the record by the originating/sending bank to trace the
transaction through the system. This number is especially important in case of an error.
CTX Entry Detail Record Format allows for multiple addenda records in one ACH credit transaction.
CTX Entry Detail Record Format (Record 6)
Use this format to create the transaction to pay the tax for multiple addenda records.
Position Size Contents Date Element Name
1-1 1 6 Record Type Code. Insert the number 6
2-3 2 22 or 24 Transaction Code. Enter the number 22. (24 for a pre-note.)
4-11 8 Numeric Job Service North Dakota’s Bank Routing/Transit Number.
12-12 1 Numeric JSND’s Bank Routing/Transit Number Check Digit.
13-29 17 Alphanumeric JSND’s Bank Account Number (with trailing blanks).
30-39 10 $$$$$$$$¢¢ Total Payment Amount. No decimal. Insert leading zeros.
40-54 15 Alphanumeric Provider’s identification number (with trailing blanks).
55-58 4 Numeric Number of Addenda Records. insert leading zeros.
59-74 16 Alphanumeric Your business name as provided to the North Dakota UI program
75-76 2 Not used Reserved
77-78 2 Not used Discretionary Data.
79-79 1 1 Addenda Record Indicator. Insert a one.
80-94 15 Numeric ACH Trace Number.
Position 1-1 — Record Type Code. This entry will always be 6.
Position 2-3 — Transaction Code. This position will be 22 in all cases unless you are sending a pre-note
when it will be 24. An entry of 22 indicates the transaction is a credit and the payment is going to a checking
account. An entry of 24 indicates that the transaction is a pre-note (test.)
Position 4-11 — Receiving Bank Routing/Transit Number. This eight-digit number identifies Job Service
North Dakota’s bank. We will give you the receiving bank routing/transit number in the confirmation notice for
ACH credit once your EFT application has been received.
Position 12-12 — Receiving Bank Routing/Transit Number Check Digit. This one-digit number identifies
Job Service North Dakota’s bank check digit number. We will give you the receiving bank routing/transit
number in the confirmation notice for ACH credit once your EFT application has been received.
Position 13-29 — Receiving Bank Account Number. This entry identifies the bank where the EFT payments
will be sent. It will be given to you in the confirmation notice. Insert trailing blanks.
Position 30-39 — Amount. This entry is the amount to be posted to the recipient’s account. It must be right
justified and zero filled. Do not insert a decimal point. The last two characters are always cents.
Position 40-54 — Providers Identification Number. An alphanumeric position that identifies the provider
sending the payment. Insert trailing blanks.
Position 55-58 — Number of Addenda Records. A numeric position that identifies the number of addenda
records. Insert leading zeros.
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Position 59-74 — Employer Name. Enter your business name in this position. Use the name you have
designated to Job Service North Dakota for Unemployment Insurance purposes.
Position 75-76 — Reserved. This two-character position is not used by Job Service North Dakota.
Position 77-78 — Discretionary Data. This two-character position is not used by Job Service North Dakota.
Position 79-79 — Addenda Record Indicator. Always insert a one. A value of “1” indicates that one or more
addenda records follow.
Position 80-94 — Trace Number. A number added to the record by the originating/sending bank to trace the
transaction through the system. This number is especially important in case of an error.
CTX ADDENDA RECORD (Record 7)
Position Size Contents Date Element Name
1-1 1 7 Record Type Code. Insert the number 7
2-3 2 05 Addenda Type Code. Insert the number 05
4-10 7 Numeric Employer’s ND UI Tax Account Number. Insert leading zeros.
11-20 10 $$$$$$$$¢¢ Dollar amount posted to employer’s account. No decimal. Insert
leading zeros.
21-29 9 Numeric Employer’s Federal Employer Identification Number (FEIN)
30-59 30 Alphanumeric Employer’s business name (with trailing blanks).
60-83 24 Not used Not read by Job Service North Dakota
84-87 4 Numeric Addenda Sequence Number. Insert leading zeros.
88-94 7 Numeric Entry Detail Sequence Number.
Position 1-1 — Record Type Code. This entry will always be 7.
Position 2-3 — Addenda Type Code. This entry will always be 05.
Position 4-10 — Employer’s ND UI Account Number. This is a seven-digit numeric position that identifies
the employer for whom the payment is being made. Its use is essential for your payment to be properly
credited. The tax account number must be right justified and zero filled.
Position 11-20 — Dollar Amount Posted To Employer’s Account. This position is ten-digits. It must be
right justified and zero filled. Do not insert a decimal point. The last two characters of the ten digits are
always cents.
Position 21-29 — Employer’s Federal Employer Identification Number (FEIN). This nine-digit position is
the employer’s FEIN.
Position 30-59 — Employer’s Business Name. This thirty-digit position is for the employer’s business name.
Insert trailing blanks.
Position 60-83 — Reserved. This twenty-four digit position is not read by Job Service North Dakota.
Position 84-87 — Addenda Sequence Number. This four-digit position identifies the number of the addenda
record. Insert leading zeros.
Position 88-94 — Entry Detail Sequence Number. This seven-digit number is the same as the last seven
digits of the trace number of the related Entry Detail Record (Record 6).
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GLOSSARY OF TERMS
ACH. “Automated Clearing House” (ACH) means any entity that operates as a clearing house for the electronic
clearing of debits and credits between financial institutions pursuant to an agreement with an association that
is a member of the National Automated Clearing House Association.
ACH Credit. The “ACH Credit” is a method by which money is transferred electronically through the
Automated Clearing House (ACH) network. An ACH credit transaction is one in which you, the taxpayer,
through your bank, originate an entry to credit (deposit) funds in the designated bank account and debit
(withdraw) funds from your own account for the amount of the tax payment.
CCD. “Cash Concentration or Disbursement” is a standard National Automated Clearing House Association
data format used to make ACH credit/debit transactions.
Deposit Date. See "Settlement Date."
EFT. “Electronic Funds Transfer” is a term that identifies any system used to transfer payments or funds
electronically. EFT refers to any transfer of funds, other than a transaction originated by check, draft or similar
paper instrument, that is initiated through an electronic terminal, telecommunications instrument, computer or
magnetic tape, to order, instruct or authorize a financial institution to debit or credit an account.
FRB. “Federal Reserve Bank” is the central banking system of the United States, consisting of 12 regional
reserve banks and member depository institutions that are subject to Reserve requirements.
NACHA. The “National Automated Clearing House Association” is the organization that establishes the
standards, rules and procedures governing the ACH Network.
Payment date. See "Settlement Date."
Pre-note Test. A pre-notification (pre-note) test is a zero-dollar entry sent through the ACH network to verify
banking information. A pre-note test must be done at least 10 calendar days before the first live EFT payment.
Service Provider. An entity that performs accounting services, prepares tax documents, performs similar
services, and remits tax payments on behalf of its clients. Examples of service providers are payroll processors
such as; accountants; third party withholders such as banks; and bill-paying services.
Settlement Date. The date an electronic payment is deposited in a bank account for deposit of electronic tax
payments. The dates also include the date a pre-note transaction occurs.
UI Tax Account Number. The account number assigned by Job Service North Dakota to an employer’s
Unemployment Insurance tax account.
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ELECTRONIC FUNDS TRANSFER (ACH CREDIT)
UNEMPLOYMENT INSURANCE JOB SERVICE NORTH DAKOTA
JOB SERVICE NORTH DAKOTA UI/TAX & FIELD SERVICES
UNEMPLOYMENT INSURANCE PO BOX 5507 BISMARCK ND 58506-5507
SFN 52490 (R. 3-19) 701-328-2814
Check our Web Page at TTY 800-366-6888 (Toll Free in ND) FAX: 701-328-1882
www.jobsnd.com
• Please type or print clearly in ink.
• Return your completed application to the address listed below.
Business Name North Dakota Unemployment Insurance Account Number
Address
City State ZIP Code
Contact Person Telephone Number
( )
E-mail Address Fax Number
( )
I (we) contacted my (our) bank and confirmed that the bank can initiate Automated Clearing
House transactions that meet Job Service North Dakota requirements. For verification, Job Service
may contact:
Name of Bank Bank Contact Person Telephone Number
( )
I (we) request that Job Service North Dakota grant authority to the above named business to initiate
Automated Clearing House credit transactions to the bank account of the Unemployment Insurance
Program. I (we) understand transactions must be in the National Automated Clearing House
Association (NACHA) CCD format and may only be initiated for payment of Unemployment Insurance
contributions. I (we) understand that the above named business is responsible for paying the cost of
initiating such transactions that may be charged by the business’ financial institution. I (we)
acknowledge that the origination of ACH transactions to my (our) account must comply with the
provisions of U.S. law.
Authorized Signature Title Date
X
Send your completed application to:
EFT Coordinator
Job Service North Dakota
UI/Tax & Field Services
PO Box 5507
Bismarck, ND 58506-5507
KEEP A COPY OF THIS AGREEMENT FOR YOUR RECORDS
Job Service North Dakota is an equal opportunity employer/program provider.
Auxiliary aids and services are available upon request for individuals with disabilities.
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| Unemployment Insurance JSND 4038 (R 8-19) Job Service is an equal opportunity employer/program provider. Auxiliary aids and services are available upon request to individuals with disabilities. |