Minnesota Payroll Tax Registration

As an employer in Minnesota who has recently hired a new employee, it is important to understand the process of payroll tax registration in the state. This involves registering with the Minnesota Department of Revenue (MDR) to ensure compliance with state tax laws and responsibilities related to employee payroll.

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.

Use Mosey to register for payroll tax in Minnesota.

Minnesota Withholding Tax Setup

Employers with Minnesota employees must register for withholding tax with the Department of Revenue.

  1. Register for a Withholding Account Number Online with e-Services

    Sign up for an e-Services account online using your Federal Employer ID Number.

  2. Register for Withholding Tax on e-Services

    Log into your e-Services account and register your business for withholding tax.

  3. Configure Payroll with Your Withholding Account ID

    Upon receipt, provide your withholding tax account ID to your payroll provider.

Minnesota Unemployment Insurance Setup

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.

  1. 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.

  2. Complete Registration

    Using your Temporary User ID and Password complete the rest of the Minnesota Unemployment Insurance registration process.

  3. Configure Payroll

    Upon receipt, provide your Unemployment Account Number to your payroll provider.

  4. 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.

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