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Last Updated: 7/16/2018

Frequently Asked Questions

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Withholding Tax

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Withholding Tax > Tax Information > Interstate carrier company

  • If the employee asks me to withhold tax for more than one state, is that acceptable?Back to top

    No, withhold income tax for the employee’s state of residence only.  If the employee would like assistance in filing their individual income tax, they should contact our Individual Income Tax Division.  ​

  • Do I change which state I am withholding tax if an employee’s state of residency is changed during the year?Back to top

    Yes.  For more information or assistance filing individual income tax, contact our Individual Income Tax Division.

  • If the employee works in a state where income tax is not required, should I withhold Minnesota tax? Back to top

    You would withhold to the employee’s state of residence only.  If the state does not require income tax withholding, it is not required to withhold.  ​

  • If the company does not have 50% of the duties assigned to any other state, would there be withholding on the state of residency only?Back to top

    Yes, withhold to the state of residency only.  ​

  • If all work was performed outside the employee's state of residency, from which state would the business withhold?Back to top

    You withhold from the state of residency as well as any other state in which more than 50% of their compensation is earned.  ​

  • If the employee performs duties in two states with reciprocity, can we file a form to only withhold Minnesota tax? Back to top

    Minnesota currently has reciprocity with North Dakota and Michigan. If the employee lives in North Dakota or Michigan and would like to have their state of residency tax withheld rather than Minnesota, you should have them fill out the Form MWR. Submit the form to the department once complete. ​