Minnesota New Employer Information
Congratulations on your decision to become a new employer in Minnesota! You will need a few things in place before you run your first payroll.
For help registering your business in Minnesota, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
- 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.
- To learn more about SUTA rates, please read our article “What Is SUTA Tax?”
State-mandated Requirements:
- You must have workers’ comp insurance if you have at least 1 employee in Minnesota. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Minnesota here.
- Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.
- Minnesota requires that employers with 1 or more employees who have been in business for at least 1 year enroll in Minnesota Secure Choice Retirement Program, the state-mandated retirement program, or offer a qualifying retirement plan alternative.
- Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee:
- In 2024, the large employer (employers with gross revenues of $500,000 or more) wage is $10.85 per hour and the small employer (employers with gross revenues of under $500,000) wage is $8.85 per hour.
- 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!
This is not an all-inclusive list for new employers. Please check with the federal, state, and local governments for more information.
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