The Minnesota Department of Revenue released a new Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, which employees may be required to complete and provide to their employer.
Federal Form W-4, Employee’s Withholding Allowance Certificate, is used to determine the amount of federal income tax withholding and, in most cases, the Minnesota income tax withholding. The new Minnesota Form W-4MN should be completed in addition to federal Form W-4 in some situations.
- Effective immediately, you must have employees complete Form W-4MN in addition to the federal payroll Form W-4 if they:
- Claim fewer Minnesota allowances than federal allowances (Minnesota allowances cannot exceed the number of federal allowances),
- Claim more than 10 Minnesota withholding allowances,
- Request additional Minnesota withholding be deducted each pay period, or
- Claim to be exempt from Minnesota income tax withholding and you reasonably expect their wages to exceed $200 per week.
For Minnesota purposes, continue to have employees only complete the federal Form W-4 if the employee chooses the same number of Minnesota allowances as federal and the number claimed is 10 or less.
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