Form W-4MN is the Minnesota equivalent of federal Form W-4. In some situations, employees must complete the new state Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, in addition to federal Form W-4.
When is it necessary?
There is no need for the separate Minnesota form if the employee claims 10 or fewer withholding allowances, and chooses the same number for both state and federal taxes. Use the same number of allowances reported on Form W-4 to determine Minnesota withholding.
However, the employee must provide a completed Form W-4MN if he or she:
- chooses to claim fewer Minnesota withholding allowances than for federal purposes;
- claims more than 10 Minnesota allowances;
- requests additional Minnesota withholding to be deducted each pay period; or
- claims to be exempt from Minnesota income tax withholding, and meets one of the requirements listed in the instructions for Form W-4MN.
Note: Minnesota law imposes a $500 penalty on any employee who knowingly files an incorrect withholding allowance/exemption certificate.
As an employer, you are not required to verify the number of withholding allowances claimed by employees. You should honor each Form W-4 and W-4MN, unless you are instructed differently by the department.
However, you are required to send copies of Form W-4MN to the department at the address provided on the form if any of the following apply:
- The employee claims more than 10 Minnesota withholding allowances.
- The employee claims to be exempt from Minnesota withholding and you reasonably expect the wages to exceed $200 per week; except if the employee is a resident of a reciprocity state and has completed Form MWR.
- You believe the employee is not entitled to the number of allowances claimed.
Note: If an employee claims to be exempt from Minnesota withholding, you must have them complete a new Form W-4MN each year. You may be assessed a $50 penalty for each required Form W-4MN not filed with the department.