If you are an employer in Minnesota who has recently hired an employee, you will need to register for payroll taxes with the Minnesota Department of Revenue. This registration process ensures that you are compliant with state tax laws and able to properly withhold and remit taxes on behalf of your employees.
How Minnesota Payroll Registration Works
There are 2 payroll tax setup tasks you may need to complete in Minnesota to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Minnesota agencies or use Mosey to do it.
Minnesota Unemployment Insurance Setup for Corporation, LLC, LLP
Employers with Minnesota employees must register for the Minnesota Unemployment Insurance Program. Registration must occur prior to your first quarterly wage report, but not until wages have actually been paid. Note: In lieu of paying contributions on taxable wages each quarter, 501(c)(3) organizations are automatically registered to reimburse the Minnesota Unemployment fund for benefits paid to terminated employees. 501(c)(3) organizations may change this election online within 30 days of registering.
- Register for a Minnesota Unemployment Insurance Account
Register for a Minnesota Unemployment Insurance Account using your Federal Employment Identification Number, Minnesota Department of Revenue Tax ID number, and other business information. When filing online you will immediately receive a Temporary User ID and Password. The Permanent User ID and Password will be mailed the following day.
- Complete Registration
Using your Temporary User ID and Password complete the rest of the Minnesota Unemployment Insurance registration process.
- Configure Payroll
Upon receipt, provide your Unemployment Account Number to your payroll provider.
- Maintain Records of Determination of Covered Employer Status
Keep a record of your Determination of Covered Employer Status that was mailed to you with your Permanent User ID and Password. The login information and Unemployment Insurance Employer Account number will be needed to report wages quarterly.
- Elect Contributory Payment Method (Nonprofits only)
501(c)(3) organizations who would like to elect the "contributory" payment of unemployment taxes on wages each quarter must change the election by logging into the Minnesota Employer Self-Service System. Note: Changing your payment method election is effective for a minimum of 24 months.
Minnesota Withholding Tax Setup for Corporation, LLC, LLP
Employers with Minnesota employees must register for withholding tax with the Department of Revenue.
- Register for a Withholding Account Number Online with e-Services
Sign up for an e-Services account online using your Federal Employer ID Number.
- Register for Withholding Tax on e-Services
Log in to your e-Services account and register your business for withholding tax.
- Configure Payroll with Your Withholding Account ID
Upon receipt, provide your withholding tax account ID to your payroll provider.
