The below content should be reviewed in conjunction with the in-depth federal coverage of this topic provided above.

Authors: David Bahls and Kathi J. Wright, Gray Plant Mooty

Summary:

  • Whether an employee is a resident or nonresident of Minnesota determines whether the employee is subject to income tax withholding in the state. Different income tax withholding rules apply when a Minnesota resident works in another state, when a nonresident works in Minnesota, and when an expatriate works abroad. See Withholding on Residents, Nonresidents and Expatriates.
  • An IRS Form W-4, Employee's Withholding Allowance Certificate, is normally used for Minnesota personal income tax withholding. However, if an employee wants to claim fewer allowances than are claimed for federal withholding purposes, to claim more than 10 Minnesota allowances or wants additional withholding deducted, the employee must file Minnesota Form, W-4MN,Minnesota Employee Withholding Allowance/Exemption Certificate. See Employee's Withholding Allowance Certificate.
  • Withholding on supplemental wage payments, such as bonuses, is calculated differently depending on whether or not the payments are made simultaneously with regular wages. See Supplemental Wages.
  • Employers are required to provide certain information to employees on an annual basis. Minnesota employers must provide IRS Form W-2, Wage and Tax Statement, to current employees by January 31 of each year. See Form W-2 Requirements.
  • Minnesota requires that employers maintain adequate records for four years. See Recordkeeping Requirements.