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.
  • IRS Form W-4, Employee's Withholding Allowance Certificate, is normally used for Minnesota personal income tax withholding. However, an employee must file Minnesota Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, under certain circumstances. 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 annually. See Form W-2 Requirements.
  • Minnesota employers must maintain adequate records for a certain number of years. See Recordkeeping Requirements.