Minnesota registration and tax info

Having payroll issues? Learn how to troubleshoot blocked payroll.

Setting up payroll in Minnesota for the first time

Before you can pay employees in a new state, you must register with the state’s tax agencies. This lets you file and pay the right taxes.

Use the dropdowns below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.

Employee tax withholding setup in Minnesota

If you're hiring a new employee or if an employee’s personal or financial info has changed, they must fill out these forms before their first paycheck:

  • A Federal Form W-4
  • A Minnesota State Form W-4MN (this is the state’s version of the W-4)

Federal Form W-4

Employees can fill out and sign their federal W-4 form in Gusto by following these instructions.

Minnesota Form W-4MN

  1. Download Form W-4MN from the Minnesota agency website.
  2. Have the employee complete and sign it. In Gusto, employees can enter their state tax elections by following the instructions below.
    • Clicking My profile
    • Going to Taxes.
    • Clicking Edit next to the Minnesota tax info.
  3. Keep a copy for your records. Do not send it to Gusto.
  4. If still needed, you can help update the employee’s state tax info in Gusto. As an admin:
    • Go to the People section and click their name.
    • Go to Taxes.
    • Click Edit next to the Minnesota tax info.

What if the employee does not give you the W-4MN on time?

If the form isn’t submitted before their first paycheck, you must withhold taxes as if they are single with no allowances.

Important tips

  • You do not need to verify the number of allowances the employee claims.
  • Accept and honor each W-4 and W-4MN unless Gusto tells you otherwise.
  • If an employee gives you a new federal W-4, they must also give you a new W-4MN.

Need to close or reopen a tax account? Head to our article on closing and reopening a state or local tax account.