Agricultural Workers

Before you start withholding Minnesota income tax from your employees’ wages, you must have a Minnesota Tax ID Number and be registered for withholding tax. The Minnesota Department of Revenue can assess you a $100 penalty if you fail to do so.

If you are a new employer, see Withholding Fact Sheet 10, New Employer Guide, for important information. If you do not have a Minnesota ID number, apply online or call us at 651-282-5225 or 1-800-657-3605.

If you already have a Minnesota ID number for other taxes for the same business, you can use the same number for withholding tax. To add a withholding account and log in to our e-Services system.

Minnesota Withholding Allowances
You must have all new employees complete Minnesota Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, when they begin employment to determine the number of withholding allowances they may claim. If a new employee does not give you a complete Form W-4MN before the first wage payment, withhold Minnesota tax as if they are single with zero withholding allowances.

If an employee completed a federal Form W-4 from 2019 or prior years, you may continue to use the allowances determined on that form. If the employee completes a new Form W-4, they must complete a new Form W-4MN for Minnesota withholding allowances.

For details, see Withholding Fact Sheet 9, Definition of Wages, and Withholding Fact Sheet 10, New Employer Guide.

For payment options, see our Make a Payment page for businesses.

You’re required to pay electronically if any of these apply:

• You withheld more than $10,000 during the last 12-month period ending June 30
• You are required to electronically pay any other Minnesota business tax
• You use a payroll service company

If you’re required to pay business taxes electronically for one year, you must do so for all future years.

You must electronically file all Minnesota withholding tax returns, including past-due and amended returns, by logging in to e-Services.

At the end of the calendar year, complete a federal Form W-2 for each employee to whom you paid wages during the year. You must:

• Provide Forms W-2 to your employees by January 31 following the end of the calendar year
• Electronically submit Form W-2 information to Revenue by January 31 each year

For details, see the Minnesota Income Tax Withholding instructions. For specifications for submitting W-2 forms electronically, see Withholding Fact Sheet 2, Submitting Form W-2 Information.