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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 > Nonresident

  • I employ a resident from another state to work in Minnesota. How do I withhold state taxes?Back to top

    You must register for a Minnesota Withholding Tax ID number.  You can do this online through e-Services.  Click on “Register for a Minnesota tax ID number” on the file and pay tab.​

  • 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.​