Minnesota payroll tax and registration guide

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?

The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers. 

Let Middesk handle your state tax registrations (and more)

If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.

• 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 your government accounts in one place on 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

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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.

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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