Hibou Odoo Suite Enterprise: State of Minnesota: Obtaining a TIN + Unemployment Insurance

Purpose

The purpose of this documentation is to outline the processes and requirements associated with becoming a new employer and processing payroll in the state of Minnesota. All of these steps are required for running payroll and remaining compliant with the state of Minnesota's requirements for employers.

Good to Know!

Federal Employer requirements (obtaining a federal identification number, withholding of federal income tax, FICA, and filing of all applicable federal returns (FUTA, 940, 941, and 1099-C) will not be covered below - just the state of Minnesota's requirements. Click here for a basic (not all-inclusive) IRS checklist for Starting a New Business.

Registering for Withholding Tax

Good to Know!

If you have already signed up for Minnesota e-Services, skip to the next section.

If you employ anyone who works in Minnesota or is a Minnesota resident, and you are required to withhold federal income tax from that employee’s wages, you must also withhold Minnesota income tax in most cases. 

Every employer subject to the requirements of withholding Minnesota income tax must sign up for Minnesota e-Services.  


Registering for Unemployment Insurance Account

If you employ anyone who works in Minnesota or is a Minnesota resident, and you are required to withhold federal income tax from that employee’s wages, you must also withhold Minnesota income tax in most cases. 

Every employer subject to the requirements of withholding Minnesota income tax must sign up for Minnesota e-Services.  

All payments in cash, goods, or any other medium to employees for services performed in covered employment are covered wages and must be reported. Covered employment is when an employee performs a service for a person or organization in return for compensation.   

If you have employees covered by the Minnesota UI law, you must register for a New Employer Account.