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Form W-4MN Employer Instructions Form W-4MN Requirement Federal Form W-4 will not determine withholding allowances used to determine the amount of Minnesota withholding. Employees completing a 2023 Form W-4 will need to complete 2023 Form W-4MN to determine the appropriate amount of Minnesota withholding. Lock-In Letters IRS Letter 2800C tells you when the IRS believes your employee may have filed an incorrect federal Form W-4. If you receive this letter, you must provide the Minnesota Department of Revenue with a copy of the employee's Form W-4MN. We will verify the number of allowances that the employee may claim for Minnesota purposes. Continue using the Form W-4MN you were using at the time you received Letter 2800C from the IRS, until we notify you to change the amount of allowances on the employee's Form W-4MN. If the employee has not completed a Form W-4MN, have them complete the form and use the allowances calculated on that form until notified by the department. Use the amount on line 1 of page 1 for calculating the withholding tax for your employees. When does an employee complete Form W-4MN?Employees complete Form W-4MN no later than when they begin employment or when their personal or financial situation changes. How should I determine Minnesota withholding for an employee that does not complete Form W-4MN? If an employee does not complete Form W-4MN and they have a federal Form W-4 (from 2019 or prior years) on file, use the allowances on their federal Form W-4. Otherwise, withhold Minnesota tax as if the employee is single with zero withholding allowances. What if my employee claims to be exempt from Minnesota withholding? If your employee claims exempt from Minnesota withholding, they must complete Section 2 of Form W-4MN. They must provide you with a new Form W-4MN by February 15 of each year. If you are paying an employee for wages that are exempt from withholding, such as Medicaid Waiver Payments or wages to H-2A visa workers, do not send us Form W-4MN. When do I need to submit copies of a Form W-4MN to the department? You must send copies of Form W-4MN to us if any of these apply:
You do not need to submit Form W-4MN to us if the employee is asking to have additional Minnesota withholding deducted from their pay. We may assess a $50 penalty for each Form W-4MN you do not file with us when required. Mail Forms W-4MN to:
Minnesota Department of Revenue What if my employee is a resident of a state that has a reciprocity agreement with Minnesota? Your employee must complete Form MWR, Reciprocity Exemption/Affidavit of Residency if both of these apply:
Your employee must complete a Form MWR by February 28 of each year, or within 30 days after they begin working or change their permanent residence. See Withholding Fact Sheet 20, Reciprocity - Employee Withholding, for more information. What is an invalid Form W-4MN? A Form W-4MN is considered invalid if any of these apply:
What if I receive an invalid form? Do not use the invalid form to calculate Minnesota income tax withholding. Have the employee complete and submit a new Form W-4MN. If the employee does not give you a valid form, and you have an earlier Form W-4MN from them, use the earlier form to calculate their withholding. If a valid Form W-4MN is not completed by the employee, withhold taxes as if the employee is single and claiming zero withholding allowances. What if my employee is a nonresident alien of the United States? If the wages to this employee are subject to income tax withholding, you will use Table 1 and the procedure under Withholding Adjustment for Nonresident Alien Employees in IRS Publication 15-T to determine the correct Minnesota withholding tax. Do not use this procedure for nonresident alien students from India and business apprentices from India. Also do not use this procedure for certain nonresident aliens who are residents of South Korea. See IRS Notice 1392 for special instructions and withholding exceptions. |