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Last Updated: 11/4/2016

Residents Working Outside Minnesota

​If you employ a Minnesota resident who works in another state (other than Michigan and North Dakota where reciprocity agreements apply), you may be required to withhold tax for the state the employee is working, for Minnesota, or for both.

Contact the state where your employee is working to find out if you must withhold tax for that state. To determine if you must also withhold Minnesota tax, complete the worksheet below.

Worksheet for residents working outside Minnesota

1. Enter the tax that would have been withheld if the work had
been performed in Minnesota (use Minnesota tax tables) . . . . . . . . . . . 1_________________
 
2. Enter the tax you are withholding for the state in which
the employee works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2_________________
 
3. If line 1 is more than line 2, subtract line 2 from line 1.
Send this amount to the Minnesota Department of Revenue . . . . . . . . . 3_________________
 
If line 1 is less than line 2, do not withhold Minnesota income tax. Send the amount on
line 2 to the state in which the employee is working.
 

Minnesota residents working outside the United States 

 
If you employ a Minnesota resident who works outside the United States, you are required to withhold Minnesota tax on wages that are subject to U.S. federal income tax withholding.