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Last Updated: 3/29/2018

Withholding for Seasonal Businesses

If you have a seasonal business, you may be able to deposit and file for only the quarters you pay wages.

Do I qualify for the seasonal option?

You qualify if you consistently withhold tax in the same quarters each calendar year (up to three, but not all four). If your season varies due to weather or other factors, choose the quarters that match your longest season.
 
You do not qualify if you are registered as a third-party bulk filer.

How do I change to the seasonal option?

Contact us at withholding.tax@state.mn.us, or call 651-282-9999 or 1-800-657-3594 (toll-free). We will need information about your business’ active and inactive quarters. If you use a payroll service company, contact them and ask if they can file seasonally.
 

What happens next?

After we update your account, you will:
  • Notify your payroll service company of your seasonal status (if applicable).
  • Deposit tax for active quarters only.
  • File returns for active quarters only, even if your season is shorter than expected and you did not pay wages.
  • Contact us if you need to file and pay during an inactive quarter.
 

What do I need to know as a third-party bulk filer?

If you have clients that want to change their account to seasonal, they must contact us.
 
If you have seasonal clients, you will only deposit tax and file returns for active quarters. We will reject a return if you file for an inactive quarter.