Is Minnesota a state where withholding is required?

<p>If your small business employs Minnesota residents, you must withhold and pay Minnesota income tax on their wages. This is on top of the fact that the same employees are required to withhold federal income tax.</p>

what is Minnesota state withholding tax?

<p>The Minnesota Withholding Tax is a state income tax that you, as an employer, deduct from your workers' paychecks. The money is subsequently deposited with the Minnesota Department of Revenue, and withholding tax reports are filed. Almost all payments made to workers for services they perform for your firm are subject to withholding tax.</p>

Minnesota Payroll Services

Minnesota Payroll Tax And Labor Laws

Get your Minnesota State Tax ID Number

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Did you know that under the Fair Labor Standards Act, employees must be paid the federal minimum wage of $7.25 per hour, rather than the state minimum pay of $10.08 per hour (for large companies) or $8.21 per hour for all other businesses?

Minnesota Wage and Hour Laws

Employees working for big companies must be paid at least $10.08 per hour, while employees working for small firms must be paid at least $8.21 per hour. Employers classified as large are those with yearly gross sales or revenue of at least $500,000. The federal minimum wage of $7.25 per hour is required for employees covered by the Fair Labor Standards Act.

Except for the following personnel, who are not covered:

salespeople who make at least 80% of their sales outside of their employer’s facilities;
employees in the agriculture industry;
drivers of taxicabs
individuals whose qualifications and hours are controlled by the United States Department of Transportation;
sailors; and
religious orders’ members

Minnesota Payroll for Employers

Employers are required to pay salaries at least once every 31 days on a predetermined payday. Wages earned during the first half of the first 31-day period are payable on the first normal payday after the first day of employment unless paid sooner.

Minnesota Unemployment:

Taxable Wage Base ($000s): 35,000

New Employer Rate (% Taxable Wages) 1.1 – 9.0*

Minnesota Income Tax Withholding

Employers in Minnesota are required to deduct income tax from the earnings of both residents and non-residents.

Every Minnesota employer is required to deduct state taxes from taxable earnings provided to covered employees.

Minnesota has reciprocal agreements with Michigan and North Dakota, requiring nonresidents to verify that they are entitled to tax credits for income taxes paid to their home state. Residents of Minnesota who work in Michigan or North Dakota are free from withholding and tax filing obligations in those states.

Minnesota Benefits

Minnesota Voting Rights:

Employer Right to Schedule Voting Hours Yes

Pay Deduction for Voting Time Leave Prohibited

Employers in Minnesota are required to provide employees enough time off to vote. The legislation does not define how much time off employees must be given.

Minnesota State Tax Resources

Minnesota Department of Revenue >>

Minnesota Department of Employment and Economic Development – Unemployment Insurance Program >>

Minnesota State Regulations >>

Minnesota Department of Labor and Industry >>

Minnesota Laws >>

Minnesota SUI Rate >>

Question on FUTA (Federal Unemployment Tax Act)

See What is FUTA article

AccuServe Payroll disavows any responsibility or warranty for the information on these state payroll pages. The material provided is for informational purposes only and does not constitute tax or legal advice. Verify this information with professional tax, legal, or other experts to see if and how it applies to your specific circumstances.

This website provides articles that are intended to be informative and educational. AccuServe Payroll is not responsible for the accuracy of any of the information provided on these pages. AccuServe Payroll does not necessarily agree with or support any of the views stated in the materials. The information contained in these documents should not be construed as legal or accounting advice, nor should it be used to replace legal, accounting, or other professional advice where the facts and circumstances justify it. If you need legal or accounting advice or other professional assistance, to address your specific facts, circumstances, and business needs, you should always consult a licensed attorney, accountant, or other tax specialists.