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Last Updated: 10/26/2017

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Withholding Tax

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Withholding Tax > Tax Information > Filing status

  • If a Minnesota resident is working in a state that does not have income tax requirements, should I withhold Minnesota tax?Back to top

    You must withhold Minnesota income tax from wages paid to a Minnesota resident regardless of where the work is performed.​

  • How do I calculate how much Minnesota withholding should be done?Back to top

    The employee’s Form W-4 is used to determine the amount of federal withholding and, in most cases, the Minnesota income tax withholding.  If a new employee does not give you a completed Form W-4 before the first wage payment, withhold tax as if they are single with zero withholding allowances. If the employee wishes to claim a different number of allowances from federal, the employee must complete Form W-4MN in addition to federal Form W-4.​

  • If I fail to withhold Minnesota income tax from an employees’ wage, will I be penalized?Back to top

    Yes, you can be assessed. If the Minnesota Department of Revenue reviews your account and notices that Minnesota withholding should have been reported and you failed to do this, you could be assessed penalties and interest for not withholding correctly. ​

  • If the employee is temporary and does not meet the requirements to withhold in another state, should I still withhold Minnesota income tax?Back to top

    You must withhold Minnesota income tax from wages paid to a Minnesota resident regardless of where the work is performed.​