USA State Payroll Rates + Resources: State of Minnesota: Filing State Income Taxes, W2s, and 1099s

Purpose

The purpose of this documentation is to outline the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of Minnesota.

State Income Tax Withholding 

Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, is the Minnesota equivalent of federal Form W-4. Your employees may need to complete Form W-4MN in addition to Form W-4. Also, you may need to submit Forms W-4MN to the Minnesota Department of Revenue.

Your employee must provide you a completed Form W-4MN if any of the following apply:

  • They choose to claim fewer Minnesota withholding allowances than for federal purposes.

  • They claim more than 10 Minnesota withholding allowances.

  • They want additional Minnesota withholding deducted for each pay period.

  • They claim to be exempt from Minnesota income tax withholding. In this case, you must have your employee complete Form W-4MN each year.

If your employee claims 10 or fewer allowances and does not provide you Form W-4MN, determine their Minnesota withholding using the number of allowances reported on Form W-4.

You must submit copies of Forms W-4MN if any of the following apply:

  • Your employee claims more than 10 Minnesota withholding allowances.

  • Your employee claims to be exempt from Minnesota withholding and you reasonably expect the wages to exceed $200 per week. However, do not send FormsW-4MN from Michigan and North Dakota residents who provided you Form MWR.

  • You believe your employee is not entitled to the number of allowances claimed.

Send Forms W-4MN to the address on the form.

Every employee, on or before the date of commencement of employment, shall furnish their employer with a signed Minnesota Employee Withholding Allowance/Exemption Certificate (W-4MN) relating to allowances and/or an additional amount to be withheld each pay period.  

Employers are required to keep copies of completed state W-4MN forms for their employees in their files. The forms serve as verification that state income taxes are being withheld according to the employee’s instructions and needs to be available for inspection if the state requests it. 

The Forms W-4 and W-4MN generally are valid until the employee provides new ones. However, employees who claim exemption from withholding must renew the exemption annually by filing new FormsW-4 or W-4MN by February 15th of each year. 

State Income Tax Withholding Reporting and Deposits

You must electronically file (in e-Services) your Minnesota Withholding Tax returns and deposit (pay) the tax withheld by the required due dates.

Your due dates depend on whether you file returns quarterly or annually. Most employers must file their returns quarterly. Quarterly filers must deposit Minnesota tax according to their federal deposit schedule.    

Frequency
If you withheld
Then your deposit is due by
Semi-weekly
More than $1,500 in the previous quarter and the IRS requires you to deposit semi-weekly.
Wednesday after payday (if your payday is Wed., Thur. or Fri.) or Friday after payday (if your payday is Sat., Sun., Mon. or Tue.).
Monthly
More than $1,500 in the previous quarter and the IRS requires you to deposit monthly.
The 15th day of the next month.
Annually
Less than $500 prior to Dec. 1st 
(Note: If your total tax withheld for the year exceeds $500 prior to December 1, you must deposit the total amount by the last day of the month after you exceed $500)
Jan. 31st
Exception/Quarterly
$1,500 or less in the previous quarter and you filed that quarter's return on time.
April 30th, July 31st, Oct. 31st, and Jan. 31st.

Deposits must be made electronically as required or postmarked by the U.S. Post Office (not by a postage meter) on or before the due date. 

You must make an electronic deposit if:

  • You withheld a total of $10,000 or more in Minnesota income tax during the last 12-month period ending June 30

  • You are required to electronically pay any other Minnesota business tax to the Minnesota Department of Revenue

  • You use a payroll service company

For more information, see the Minnesota Income Tax Withholding Instruction Booklet and Tax Tables. 

W-2 and 1099 Forms

You must provide any W-2s and 1099s that have Minnesota withholding by January 31st. If your W-2s have no Minnesota withholding, but you are actively registered for Withholding Tax, you are expected to submit them.

If you have a total of more than 10 forms (W-2s plus 1099s), you must electronically submit the information to us using Minnesota e-Services.

If you have a total of 10 or fewer forms (W-2s plus 1099s), you may send paper copies. Mail them to Minnesota Department of Revenue, Mail Station 1173, 600 N. Robert St., St. Paul, MN 55146-1173.

For further details, see the Minnesota Income Tax Withholding Instruction Booklet and Tax Tables. 

Good to Know!

You must submit 1099s that have Minnesota withholding even if you participate in the Combined Federal/State program.