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Last Updated: 2/23/2018

Withholding Tax from Household Employees

​The Minnesota Department of Revenue considers household workers to be employees if you’re in charge of what work they do, and how they do it.

“Employees” can be full-time, part-time, seasonal, or hired through an agency. They can also be paid by the job, or on an hourly, daily, or weekly basis.

“Household work” includes work done at your home by babysitters, nannies, health aides, private nurses, house cleaners, caretakers, yard workers, or similar domestic workers. 

If you employ household workers, you are not required to withhold Minnesota tax from their pay, but you may do so if they ask and you agree.  If you do not withhold taxes, they may be required to pay estimated income tax.  For more information about paying estimated income taxes, see the Individual Income Tax Estimated Tax page

If you agree to withhold Minnesota taxes for household employees:

  • You must have a Minnesota tax ID number. You can:
    • Register online through our e-Services system.
    • Contact Business Registration at 651-282-5225 or 1-800-657-3605 (toll-free).
  • The worker must complete federal Form W-4, Employee’s Withholding Allowance Certificate, so you know how much to withhold for their wages. For more information:
  • In some cases, the worker must also fill out Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate. For more information: