Minnesota Payroll Tax and Registration Guide

Use this checklist to make sure you’ve covered everything required to set up your account as a Minnesota employer so OnPay can accurately file and pay taxes on your behalf: 

OnPay handles the filing of all state and local taxes for businesses in Minnesota, including:

If you are an existing employer who has previously run payroll in Minnesota, you likely already have the IDs and online accounts needed for OnPay to process your tax filings. 

If you are a new employer in Minnesota, you will need to register your business with the Minnesota Department of Revenue and Unemployment Insurance Minnesota. This must be completed for OnPay to be able to file and pay your Minnesota taxes.

Withholding Tax Account Number and Deposit Frequency

Existing Minnesota Employer: 

• You can find your Withholding Tax Account Number and Deposit Frequency on notices received from the Minnesota Department of Revenue. If you cannot locate this account number, please call their office at (651)-282-9999.

New Minnesota Employer: Register with the Minnesota Department of Revenue 

• Register with the Minnesota Department of Revenue online. (Click “Begin the Registration Process” and submit the required information.)
• You’ll receive your ID number instantly after completing this registration.

Unemployment Account Number and Tax Rate

Existing Minnesota Employer: 

• You can find your Unemployment Insurance Account Number and Tax Rate on the annual Determination of Tax Rate Notice received from Unemployment Insurance Minnesota. 
• If you’re unable to locate these numbers, contact the agency at (651) 296-6141
• SUI Rates depend on the industry, with an additional 0.10% base rate on top. The unemployment wage base is $38,000.

New Minnesota Employer: Register with the Unemployment Insurance Minnesota

• Register with Unemployment Insurance Minnesota online. 
• You'll receive your account number and tax rate instantly once you have completed the online registration.
• New employer rates vary by industry. You can learn more on the agency’s website.
• New employer rates generally range from 1.1% to 9%, with a wage base of $36,000.

Minnesota Workforce Enhancement Fee Rate

All Minnesota Employers: 

• The Workforce Enhancement Fee Rate for Minnesota is currently a fixed rate of 0.1%.
• This fee supports employment and training programs for workers who have permanently lost their jobs.

In order for OnPay to be able to electronically file and pay both your Minnesota withholding and unemployment taxes, you will need to grant us online access for the Department of Revenue, and with Unemployment Insurance Minnesota. 

Department of Revenue authorization

Your e-Services account administrator can log into e-Services and approve OnPay's access request. 

Don't see a request?

Unemployment Insurance Authorization

1. Log into Unemployment Insurance Minnesota
2. On "My Home Page", click Account Maintenance
3. Click Agent Authorization
4. Click Search to determine if an agent has already been assigned to your account
5. Click New to start the authorization process to add OnPay
6. On the "Assign Agent" page, enter our Agent ID (AG015877), and click Next
7. Review the information on the "Agent Details" page
   • Enter the current date in "Beginning Start Date"
   • Leave the "Effective End Date" field blank
8. In the "Available Roles" section, select the following user roles for OnPay:
   • Account Maintenance, Update and Submit
   • Tax Payment Update and Submit
   • Wage Detail Update and Submit
9. Click Save
10. Now that you've selected our user roles, you'll need to assign Employer Reporting Units for each of them:
    1. Click Assign Employer Reporting Units for the first role
    2. Select: "Assign All Employer Reporting Units"
    3. Click Save
    4. Click Previous, and then repeat the above steps for all selected roles

Grant OnPay Minnesota Power of Attorney

OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to add OnPay as your third party agent by following the instructions in this article.