What are the Minnesota payroll tax registration requirements?

If you are planning to process payroll in Minnesota or hire employees who live or work there, you are required to register as an employer with the state. This ensures you withhold, report, and pay Minnesota payroll taxes properly. Here’s the detailed information to help you understand Minnesota tax requirements.

 

Minnesota Registration for Income and Unemployment Taxes

 

The State of Minnesota requires you to register with the following tax agencies to make Minnesota state tax payments and filings:
 

• Minnesota Department of Revenue(DOR): Register and get your Withholding Tax Account Number to file and pay SIT taxes. 

• Unemployment Insurance Minnesota: Register and get your  Employer Account Number to file and pay SUI taxes. 

 

Register for the Minnesota Department of Revenue(DOR) 

You must register with the Minnesota DOR to report the state withholdings. Here are some common methods to register. 

 

• Register via Online

  • Visit  Minnesota Department of Revenue website.

  • Navigate to the “Business Registration ” Section and click “ Get a Minnesota Tax ID Number.”

  • Review the instructions and click ‘Next’

  • Fill out all the required information to finish registering.

• Number Issued:
  After completing the registration, you will receive an Minnesota Withholding Tax Account Number. This number is used to file state withholding forms like Form MW1,  and Form MN W-2. 

 

State Withholding Certificate (Form A-4)

• Employees must complete Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate when starting employment. This form is used in addition to the federal Form W-4. It tells employers how much Minnesota income tax to withhold.

• Employees may claim exemption from Minnesota withholding if they qualify (e.g., residents of certain states, Native Americans, etc.).

 

Minnesota Payroll Tax Rates for 2025

Minimum Wage Base for Minnesota

Minimum wage Base is the lowest pay that an employer is legally allowed to give an employee, as set by law.     

 

 

Minnesota State Unemployment Insurance (SUI)
SUI taxes are state-level payroll taxes that employers pay to fund unemployment benefits for eligible workers who lose their jobs through no fault of their own. Here are the SUI tax rates for Minnesota:

 

 

 

Minnesota Payroll Tax Deposits

 

To pay your Withholding and unemployment taxes, you must follow the given methods:

Withholding tax deposits 

 

• Pay via Online: To pay online sign in to  MN e-Services website or submit an  EFT.

• Pay via Mail: To pay by mail, sign in to MN Payment Voucher System website  and include payment voucher and mail your check or money order along with your voucher to the address listed on your voucher.

• Pay by phone: call 800-570-3329 to make payments.

 

Unemployment tax deposits

 

• Pay via Online: 

-  Sign in to the Minnesota Unemployment Insurance System.

-  Select payment information → account summary

-  Select Electronic Check from the drop-down menu, and enter your bank account information to make an ACH debit payment.

 

• Pay via Mail: 

• Sign in to the Minnesota Unemployment Insurance System.’

• Select payment information → account summary

• Select paper check from the drop down menu to create a payment voucher and mail it to the address mentioned on the form.

 

Minnesota Payroll Tax Filings

Here are the tax forms to be filed with the Department of Revenue (DOR) and the Unemployment Insurance Minnesota.

 

Minnesota Department of Revenue (DOR)
 

• Form MW1, Quarterly Withholding Reconciliation: Form MW1, Quarterly Withholding Reconciliation, is used by Minnesota employers to reconcile the amount of state income tax withheld from employee wages with the deposits made to the Minnesota Department of Revenue (DOR).

 

How to file?

• File by online: To file online, visit the e-Services section of the DOR website.

 

Deadline: Form MW1 must be filed quarterly by the following due dates:

• Q1 (Jan–Mar): April 30

• Q2 (Apr–Jun): July 31

• Q3 (Jul–Sep): October 31

• Q4 (Oct–Dec): January 31

 

• Form MN W-2, Wage and Tax Statement: Form W-2 reports wages paid and state and federal income taxes withheld for each employee during the calendar year. Employers must provide employees with a W-2 and also file copies with the Minnesota Department of Revenue (DOR) to reconcile annual withholding.

 

How to file?

• File by online: To file online, visit the e-Services section of the DOR website. and make payments online

Deadline: The deadline for filing the annual Form MN W-2 is January 31

 

Unemployment Insurance Minnesota: 

 

• Form MDES-1 – Employer’s Unemployment Quarterly Tax Report:  Form MDES-1 is used by Minnesota employers to report employee wages and pay Unemployment Insurance (UI) taxes each quarter. These reports fund the state’s UI program, which provides temporary benefits to eligible unemployed workers.

How to file?

• File by online: Employers must file quarterly wage and tax reports through the Minnesota Unemployment Insurance Employer Self-Service System.

• File by phone: use the State of Minnesota’s Unemployment Insurance website instructions. Employers without internet access, who report either no wages or wages for only a small number of employees, may file their reports by phone.

 

Deadline: Reports and payments are due on the last day of the month following the end of each calendar quarter:

• Q1 (Jan–Mar): April 30

• Q2 (Apr–Jun): July 31

• Q3 (Jul–Sep): October 31

• Q4 (Oct–Dec): January 31

 

New Hire Report 

Employers are required to report all newly hired and rehired employees in Minnesota to help enforce child support obligations and detect unemployment insurance fraud.

 

How to File a New Hire Report

You can file your Arizona New Hire Report in three main ways:

1. Online (Preferred)

• Submit reports through the Minnesota New Hire Reporting Center.

2. Paper Form (Fax or Mail)

• Complete the New Hire Reporting Form and send it to the Minnesota New Hire Reporting Center.