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Last Updated: 1/12/2012

Registration Requirements for Withholding Tax

Do I need to register?

Yes, if you:
  • Have employees and anticipate withholding tax from their wages in the next thirty days; or
  • Agree to withhold Minnesota taxes when you are not required to withhold; or
  • Pay nonresidents to do work for you in Minnesota and the amount earned in Minnesota is expected to exceed the federal standard deduction for a single filer and one personal exemption; or
  • Make mining and exploration royalty payments on which you are required to withhold Minnesota taxes; or
  • Are a corporation with corporate officers performing services in Minnesota who will have withholding from their wages.
If you need to register for withholding, you may be required to register for unemployment insurance with the Department of Employment and Economic Development (DEED). To find out, go to the DEED website for more information.

There is a $100 penalty if you do not apply for a Minnesota tax ID number before the date you first withhold Minnesota taxes from an employee’s wages.

If you register for withholding but not for sales and use tax, you must also register for use tax. For more information about your use tax obligations, see registration requirements for use tax.