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Paying employees in Minnesota
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Minnesota, you must be registered with the Minnesota Department of Revenue (DOR) (income tax withholding) and the Minnesota Unemployment Insurance Program (UI) (unemployment tax and Paid Leave).
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Minnesota Accounts Registration and Rate Info
Registering for a Withholding Tax Account:
You must register for withholding (income) tax with the Minnesota Department of Revenue (DOR).
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Steps to Register:
- Visit the Minnesota Department of Revenue website.
- Scroll to the “Business Registration” section and click "Get a Minnesota Tax ID Number."
- Review the requirements for a Minnesota Tax ID.
- Check the eligible tax types for online registration.
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Before You Begin, Have the Following Ready:
- Federal Employer ID Number (FEIN)
- Your business name and address
- Your business's NAICS code (industry classification code)
- Names and Social Security numbers of business officers
- A contact name and email
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Complete the Process:
- Scroll down, click "Next," and enter all required information to complete registration.
- Your account number will be provided immediately after registering.
Registering for an Unemployment Tax Account and Paid Leave:
Register online by following these steps:
- Visit the Minnesota Unemployment Insurance Program website.
- Select "Employers & Agents."
- For detailed guidance, refer to the Minnesota Employer User Guide.
- In the "I Need To..." section, click "Employers" under "Register for an Account."
- Click "Register" under "New employer account."
- Ensure you have all the required information ready.
- Click "Next" and fill out all the requested details.
Corporate or LLC Owners/Officers with 25% or More Ownership:
Owners or officers holding 25% or more of the company should contact the agency to determine if they are exempt from unemployment insurance. Ensure the agency is aware of these individuals by going here.
Already Registered? Locate This Information
Locate Your Withholding Tax Account Number:
If you've previously processed payroll in Minnesota, you can locate your MN Withholding Tax ID by:
- Reviewing notices from the Minnesota Department of Revenue.
- Contacting the agency at (651) 282-9999.
- Logging into your Minnesota Department of Revenue E-Services account.
Locate Your Unemployment Account Number:
If you've previously processed payroll in Minnesota, you can find your MN Employer Account Number by:
- Logging into your Minnesota Unemployment Insurance account.
- Reviewing the "Determination of Tax Rate" notice from Unemployment Insurance Minnesota.
- Note: Your EAN will begin with a "0" followed by seven digits.
Locate Your Unemployment Insurance Tax Rate:
- Log in to your Minnesota Unemployment Insurance account.
- Navigate to "Account Maintenance."
- Click on "View Tax Rate Notice."
If you're unable to locate your rate, contact the agency at (651) 296-6141.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid MN address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Minnesota” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your MN Withholding Tax Account Number, Unemployment Account Number and Tax Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your MN tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your MN state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your MN state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.