Updated October 2, 2023
This article will cover:
- 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
- Paying employees in other states?
Why is this important?
For employers who pay employees in Minnesota, use this guide to learn what’s required to start running payroll while keeping compliant with state payroll tax regulations. Without this information, OnPay will be unable to file or deposit any Minnesota tax payments for your company. Any penalties and interest that accrue from missed tax payments will be your company’s responsibility.
What information OnPay needs from you
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:
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✔ |
To do: |
What is this? |
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Make sure your business is registered with the Minnesota Department of Revenue |
Allows your business to file and pay taxes in Minnesota |
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Make sure your business is registered with Unemployment Insurance Minnesota |
Allows your business to pay required unemployment insurance in Minnesota |
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Provide OnPay with your Minnesota Tax ID and deposit frequency |
The employer identification number is issued by the Minnesota Department of Revenue |
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Provide OnPay with your Minnesota Unemployment ID |
An 8-digit number unique to your account with Unemployment Insurance Minnesota |
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Provide OnPay with your Minnesota Unemployment (SUI) Rate |
A tax rate you receive annually from Unemployment Insurance Minnesota |
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Provide OnPay with your Minnesota Workforce Enhancement Fee Rate |
A required fee that supports state employment and training programs for workers who have permanently lost their jobs |
What state and local taxes and filings OnPay handles for Minnesota employers
OnPay handles the filing of all state and local taxes for businesses in Minnesota, including:
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Type of Tax |
Form ID |
Form Name |
Frequency |
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Withholding |
Form MW-5 |
Withholding Tax Deposit/Payment |
Semi-Weekly, Monthly, Quarterly, Annual |
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Form MW-3 |
Minnesota Annual Wage Withholding Tax Reconciliation |
Annual |
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State W-2 |
Wage and Tax Statement |
Annual |
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Unemployment |
MNDEED1 |
Employer's Unemployment Insurance |
Quarterly |
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Other |
New Hire Report |
MN New Hire Report |
As needed |
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
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 $40,000.
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 $40,000.
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.
Paying employees in other states?
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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