Minnesota Payroll Taxes- 2010 Minnesota Withholding Computer Formula

The Minnesota department of revenue has released the 2010 Minnesota Withholding Computer Formula. The new formula is effective for wages paid beginning January 1, 2010 (supersedes any formulas before January 1, 2010).

Our payroll software automatically calculates Minnesota payroll taxes. A free demo of the software can be downloaded here: Payroll Software Download .

If you employ anyone who works in Minnesota or is a Minnesota resident and you are required to withhold federal income tax from the employee’s wages, in most cases you are also required to withhold Minnesota income tax. If you are not required to withhold federal income tax from the employee’s wages, in most cases you are not required to withhold Minnesota income tax. The rules for determining if you are required to withhold federal taxes are in IRS Publication 15.

You must withhold Minnesota income tax from the wages you pay employees and then pay the amount withheld to the Department of Revenue. You must withhold tax even if you pay employees in cash or give them other goods or services in exchange for working for you. Goods and services are subject to Minnesota withholding tax to the same extent they are subject to federal withholding tax.

To learn more about Minnesota Payroll Taxes, please visit the Minnesota department of revenue website.

To learn more about our small business payroll software, please visit www.realtaxtools.com