Minnesota New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an employer identification number (also known as an EIN or FEIN) if you don’t already have one. The simplest (and preferred) way is to apply for an EIN with the IRS online. There is no cost to apply.
- To read more about applying for EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
- Although it is not required, we recommend that you register for this federal tax paying system. You can easily register online. This account will be helpful for you to make tax payments online, or view whatever tax filings have been made on your behalf by Patriot.
- To find out more about the EFTPS, please read our article, “What Is EFTPS?”
State of Minnesota Tax Accounts:
- Minnesota new employers can apply online here. You will be assigned a 7-digit tax ID number.
- You will also want to sign up for e-Services with the Department of Revenue to file your state income taxes (SIT).
- You can apply online using the Employer Self-Service website. Minnesota issues new employers an 8-digit employer account number, a user ID, and a password for use with the online system.
- Employers in Minnesota will receive a State Unemployment Tax Assessment rate every year.
- Your new employer rate is based on the average rate for the employer’s industry. You can view rates by industry on Minnesota’s website.
- There is also an additional Workforce Development Assessment, which is 0.10%.
- To learn more about SUTA rates, please read our article “What Is SUTA Tax?”
Setting Up Your New Employee:
- Have your employees fill out the required Form I-9. Note: You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “Form I-9 In a Nutshell” and “What Should Be in an Employee File?”
- Employees need to fill out the Form W-4, Employee’s Withholding Certificate, for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Employees should complete the MN Employee Withholding Exemption Certificate for state income taxes (SIT).
- You can report new hires online with the Minnesota Department of Human Services.
- Beginning 2023, the large employer wage is $10.59 per hour and the small employer wage is $8.63.
- You need to display the minimum wage poster for your employees where they can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions; we are here to help!
Disclaimer: This is not an all-inclusive list for new employers. Please check with the federal, state, and local government for more information.
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