Minnesota payroll tax and registration guide

Why is this important?

The following information requests and registration instructions must be completed before you can use OnPay to run payroll. To maintain compliance with state payroll tax regulations, you will need to provide: 

• Your state Employer Identification Number and state tax IDs - You must be registered with all state and local agencies listed in this article
• Tax rates - State and local tax offices determine these rates based on the type, age, and size of your business
• TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Note: Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state. 

Let Middesk handle your state tax registrations (and more)

If you'd like help registering your business with state agencies, our partner Middesk makes it simple and easy to hire employees and stay compliant in every state.

• Register with every state agency to get the tax IDs you need within minutes
• Stay compliant as you grow by managing agency mail and notices in your dashboard
• Manage all your government accounts in one place using Middesk's intuitive platform
• Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk→

What information OnPay needs from you

What state and local taxes and filings OnPay handles for Minnesota employers

Where you can find the tax account numbers needed

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

Updated January 1, 2025

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 range from 0.4% to 9.3%, including a base tax rate of 0.4%. The unemployment wage base is $43,000.

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 1.4% to 9.3%, including a 0.4% base tax rate, and with a wage base of $43,000.

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.

If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.

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