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.
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
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.
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.