Do I need a Minnesota Tax ID number?Back to top
If you employ anyone who works in Minnesota or is a Minnesota resident and you are required to withhold federal income tax from the employee’s wages, in most cases you are also required to withhold Minnesota income tax.
If you are not required to withhold federal income tax from the employee’s wages, in most cases you are not required to withhold Minnesota income tax.
The rules for determining if you are required to withhold federal taxes are in Federal Circular E, IRS Publication 15 (available at www.irs.gov).
If you pay an employee, including your spouse, children, other family members, friends, students, or agricultural help – to perform services for your business, withholding is required. A worker is an employee if you control what will be done and how it will be done.
Any officer performing services for a corporation is an employee and their wages are subject to withholding. For more information about withholding for corporate officers, see Fact Sheet 6.
You must withhold Minnesota income tax from the wages you pay employees and then remit the amount withheld to the department. You must withhold tax even if you pay the employees in cash or give them other goods or services in exchange for working for you. Goods and services are subject to Minnesota withholding tax to the same extent they are subject to federal withholding tax. For more information, see Fact Sheet 9 and Fact Sheet 10.
Register for a Minnesota tax ID number.
How do I get a Minnesota Tax ID number?Back to top
Before you begin withholding Minnesota tax, you will need to register for a Minnesota tax ID number. If you fail to register for a Minnesota tax ID number prior to withholding Minnesota tax, you may be subject to a $100 penalty.
You will need the following information before registering for a Minnesota tax ID number:
• Federal ID number (FEIN)
• Legal name
• Business name or DBA if applicable
• Business owner name
• Business owner social security number
• Contact phone number and email address
• NAICS Code (to locate this number, go to www.census.gov
• Business begin date
To obtain a Minnesota withholding tax identification number:
If you have questions, please call or email:
651.282.5225 or 1.800.657.3605
When are withholding tax returns due?Back to top
• You must file a return for each quarter even if you deposited all tax withheld or did not withhold tax during the quarter.
• Your quarterly returns are due April 30, July 31, October 31, and February 28 of the following year.
• To qualify for annual filing, you must have a filing history of $500 or less of withholding in prior calendar years.
• Your annual return is due February 28 of the following year.
You must speak with a withholding tax customer service representative before the due date of the first quarter return to change your filing frequency to annual.
When are withholding tax deposits/payments due?Back to top
How often you need to deposit Withholding Tax varies. It depends on your federal deposit schedule and how much Minnesota tax you withheld.
- If you withheld more than $1,500 in Minnesota tax in the previous quarter and you were notified by the IRS that you are required to deposit following the semiweekly depositing schedule, you must deposit Minnesota withholding tax on a semi-weekly schedule.
- If your payday is Wednesday, Thursday or Friday, you deposit is due Wednesday after payday.
- If your payday is Saturday, Sunday, Monday or Tuesday, your deposit is due Friday after payday.
- If the due date is a bank holiday, you have one additional day to make the deposit.
- If the due date is not a banking day, deposits will be considered on time if deposited on the next banking day.
- If you withheld more than $1,500 in Minnesota tax in the previous quarter, you must deposit Minnesota withholding tax on a monthly schedule.
- Monthly deposits are due by the 15th day of the following month.
- If the due date is not a banking day, deposits are considered on time if deposited on the next banking day.
- If the tax withheld is $500 or less prior to December 1, the entire amount may be paid when the annual return is due (February 28 of the following year).
- Annual deposit exception - Each time your total tax withheld for the year exceeds $500, you must deposit by the last day of the month after you exceed the $500.
If you withheld $1,500 or less in Minnesota tax in the previous quarter and filed that quarter’s return on time, you may deposit the entire Minnesota tax withheld for the current quarter by the due date of the quarterly return.
Fourth-quarter deposits are due January 31 of the following year.
How do I reset my password?Back to top
On the e-Services login screen, you can reset your password if you have forgotten it or if you get locked out of your account.
1. Click “Forgot Password? Account Locked?”
2. Type your unique user name in the field and click “Next”
3. Fill out the answer to your security question and click "Next"
4. Type in the new password and confirm it
5. Click “Submit” and a new authorization code will be sent to the email address on file
6. Click “Close”
If you do not know the security question or are unable to complete the steps above, call or email us for assistance. You will need your Minnesota tax ID number and either the amount of your last withholding tax deposit or the last four digits of the owner/officer's social security number.