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Last Updated: 2/23/2018

Voluntary Withholding

In situations where Minnesota tax withholding is not required, anyone who receives wages or any payments from an employer may request that the employer withhold taxes from the payments. The employer may agree – but is not required – to do so.

If you are an employer who agrees to voluntary withholding, you must have (or register for) a Minnesota tax ID number and Withholding Tax account before filing and paying the tax.

How much tax should be withheld?

The withholding amount depends on the type of wage or payment, for instance pensions and annuities, and other factors, including:

  • The number of exemptions claimed by the person receiving the wages or payments. Typically, the recipient completes Form W-4 or Form W-4MN to specify this number and the employer refers to Minnesota withholding tables to determine the amount of tax withheld.
  • The recipient may also request a specific amount be withheld on Form W-4 or Form W-4MN, depending on their tax situation.
  • The employer may also use the supplemental withholding rate of 6.25 percent.