Federal
Form W-4, Employee’s Withholding Allowance Certificate, allows the withholding of state and federal tax from employee’s wages. For Minnesota State taxes, employees can claim up to the number of federal allowances claimed on their W-4. The W-4 is also used to authorize additional withholding.
Claimed Allowances
The employee is given 30 days to submit the verification. After 30 days, the department will determine the employer’s status, and mail a notice of the decision to the employee and employer. The employer is instructed on what tax to withhold. The employee has
appeal rights to
Minnesota Tax Court. View the statute (
M.S. 270B.06).
Employer Requirements
Employers are required to submit a copy of a W-4 to the department when:
- An employee claims more than 10 withholding allowances.
- An employee claims to be exempt from the Minnesota withholding and the employer reasonably expects wages to exceed $200 a week, unless the employee has completed Form MWR, Reciprocity Exemption/Affidavit of Residency for residents of North Dakota and Michigan who work in Minnesota.
- The employer believes an employee is not entitled to the number of allowances they have claimed.
Additional Penalties
Employers are subject to a $50 penalty for each required W-4 not sent to the department. An employee who knowingly files an incorrect W-4 is subject to a $500 penalty for each incorrect W-4 filed.
