Minnesota payroll tax and registration guide

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

• State Employer Identification Number and state/local tax IDs
• Tax rates - State tax offices set 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.

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.

See what information you need to provide OnPay, and what taxes and filings OnPay handles for Minnesota Employers.

• 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:
  
  

  All Minnesota employers	What is this?
  Make sure your business is registered with the Minnesota Department of Revenue	Allows your business to file and pay taxes in Minnesota More info >
  Make sure your business is registered with Unemployment Insurance Minnesota	Allows your business to pay required unemployment insurance in Minnesota More info >
  Provide OnPay with your Minnesota Tax ID and deposit frequency	The employer identification number is issued by the Minnesota Department of Revenue More info >
  Provide OnPay with your Minnesota Unemployment/PFML ID	An 8-digit number unique to your account with Unemployment Insurance Minnesota More info >
  Provide OnPay with your Minnesota Unemployment (SUI) Rate	A tax rate you receive annually from Unemployment Insurance Minnesota More info >
  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 More info >

• Taxes and filings OnPay handles for Minnesota Employers

  Withholding Tax

  Form MW-5	Withholding Tax Deposit/Payment	- Quarterly
  Form MW-3	Minnesota Annual Wage Withholding Tax Reconciliation	- Quarterly
  State W-2	Wage and Tax Statement	- Annual

  Unemployment Insurance Tax

  MNDEED1

  Employer's Unemployment Insurance

  - Quarterly

  Other

  New Hire Report

  Minnesota Report of New Hires

  - As required

Where you can find the tax account numbers you need

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
• 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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