Voluntary Withholding

Here are some common situations where you may voluntarily withhold tax from wages.

• Clergy - If you are a qualified church organization, you may withhold state taxes when requested by a clergy member.
• Household employees - Household workers are considered employees if you’re in charge of the “household work” they do and how they do it. “Household work” includes work done at your home by babysitters, nannies, health aides, private nurses, house cleaners, caretakers, yard workers, or similar domestic workers. For more information, see Withholding Fact Sheet 7.
• Minnesota employees covered by reciprocity - If you are a Michigan or North Dakota employer, Minnesota residents covered under reciprocity may ask you to withhold Minnesota income tax from their wages. While you are not required to withhold Minnesota tax, we suggest doing so as a courtesy to your employee.

You can also voluntarily withhold tax on certain payments. For details on when and how to withhold tax from these payments, see these webpages:

• Gambling Winnings
• Third Party Sick Pay

• If you do not have a Minnesota ID number, you can register for one online or by phone
• If you do not have a withholding tax account, log in to our e-Services system to add an account

How much tax do I withhold?

• Use the supplemental withholding rate of 6.25%.
• Have your employee or payee complete federal Form W-4 or Minnesota Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate. On Form W-4MN, they may specify a number of Minnesota exemptions or request a specific amount withheld from each payment.

Your employee or payee may have to pay estimated Minnesota income tax. You may direct them to our Estimated Tax page for more information.