MN Withholding Tax Registration | Registering Your Business in Minnesota

Who must register for withholding taxes

You must register to file withholding tax if you:

  • have employees and anticipate withhold- ing tax from their wages in the next 30 days;
  • agree to withhold Minnesota taxes when you are not required to withhold;
  • pay nonresidents to do work for you in Minnesota and the amount earned in Minnesota is expected to exceed the federal standard deduction for a single filer and one personal exemption;
  • make mining and exploration royalty payments on which you are required to withhold Minnesota taxes; or
  • are a corporation with corporate officers performing services in Minnesota who will have withholding from their wages.

Use tax filing

The department may automatically register you for use tax filing if you register for withholding tax.

After you register for withholding tax

Once you are registered for withholding tax, the department will send you a letter with your tax ID number. Make your deposits electronically, either over the Internet or by telephone.

Using payroll services

Payroll service companies are required by law to register with the department and give us a list of clients for which they provide tax services. If they collect any tax from clients, they are required to remit the amount to us electronically. Also, if the payroll service company files tax returns for their clients, they’re required to electronically file the returns.

If Minnesota records show you use a payroll service, you will not get a customized deposit book. If you discontinue your payroll service, call 651-282-5225 so the Minnesota Revenue Department can send you the customized forms you’ll need to make deposits on your own.

This post is part of a series of posts on the Minnesota business registration process. For more information on how to register a business in Minnesota, contact an experienced business attorney.

CREDITS: This is an excerpt from A Guide to Starting a Business in Minnesota, provided by the Minnesota Department of Employment and Economic Development, Small Business Assistance Office, Twenty-eighth Edition, January 2010, written by Charles A. Schaffer, Madeline Harris, and Mark Simmer. Copies are available without charge from the Minnesota Department of Employment and Economic Development, Small Business Assistance Office.