Employer Tax & Reporting Requirements

1. Employee Discrimination

   Once you have started interviewing candidates for your available jobs keep in mind that it is illegal to discriminate based on age, sexual orientation, marital status, religious affiliation, or race. You may not ask job applicants if they have a disability or the nature of their disability; however, you may ask questions to determine whether they are able to fulfill the job duties. For more information, visit the U.S. Department of Labor and the Equal Employment website.

2. Obtain Your Employer Identification Number from the IRS

   Before you hire any employees you'll need to register with the US Internal Revenue Service for an Employer Identification Number (EIN). You will use this number when you report and pay taxes to the IRS and the State of Minnesota.

3. Register as a New Employer under Minnesota's Unemployment Insurance

   Under Minnesota Unemployment Insurance Law, every individual or organization that pays covered wages in Minnesota must register with the Minnesota Unemployment Insurance (UI) Program. Registration should be done as soon as possible after the first wages are paid for covered employment in Minnesota. Registration must occur prior to the due date of the first quarterly wage detail report the employer is required to submit. However, do not register until covered wages have actually been paid.

4. Request a W-4 from Your Employees

   You will need a signed Withholding Release Form (W-4) from all of your employees on or before their first day of work so that you can withhold the correct amount of federal income taxes from their paychecks. On the W-4, they should indicate the allowances they are claiming for tax purposes. If the number of allowances changes for the following tax year, ask employees to fill out a new W-4 form. For more detailed information, check out the IRS Employer's Tax Guide. The IRS requires that you keep records of employment taxes for a minimum of four years. It pays off to set up a good system for record keeping. Records will come in handy not only for employment taxes, but for other business purposes as well.

5. State Withholding Tax

   Minnesota Withholding Tax is state income tax you as an employer take out of your employees’ wages. You then send this money as deposits to the Minnesota Department of Revenue and file withholding tax returns. Withholding tax applies to almost all payments made to employees for services they provide for your business. For more information on withholding requirements, see federal Circular E, IRS Publication 15 and our Withholding Tax Instructions.

6. Verify Your Employee's Eligibility to Work

   As an employer, you are required to verify an employee's citizenship and eligibility to work in the United States using the Employment Eligibility Verification Form I-9 (also known as the Immigration Service Form). Your employees will need to complete and sign Section I of this form on or before their first day of work, and provide you with documentation to verify their identity and employment authorization in order for you to complete Section II. This form does not need to be mailed in, but you'll need to be prepared to show it upon request. Keep all of your employees' I-9s on file for three years after they've been hired, or one year after the employee left, whichever is later.

7. Workers' Compensation

   The Minnesota Workers' Compensation Law states that all employers are required to purchase workers' compensation insurance or become self-insured. This is often referred to as "mandatory coverage." Employers are generally defined as those who hire others to perform services. Employees are generally defined as people performing services for another, for hire, including minors and workers who are not citizens. As one might anticipate, there are always exceptions to the rule. Some employers are exempt and these exemptions are specified in Minnesota Statutes. However, there are common misperceptions that need clarification about who needs coverage and who does not.

8. Workplace Posters

   Minnesota law requires employers to display five state-mandated posters in a location where employees can easily see them. The posters are available at no cost and need to be updated only when Minnesota law changes.

Minimum Wage

Wage Data

Withholding Tax

Workforce Resources

1. CareerForce in Blaine

   As a collaborative group of private, public and nonprofit partners, we offer an impressive range of innovative services, including one-on-one guidance, training, networking, labor market information and much more. We are a rich resource for anyone, from any walk of life, at any career or recruitment stage.

2. ConnextMSP

   ConnextMSP was built to ensure that young professionals of color in the Minneapolis-Saint Paul region are recruited, hired, and supported by local employers as they launch their careers. This is a critical lever for advancing inclusive economic growth and building a 21st century workforce in our region.

3. Minnesota Job Skills Partnership

   The Minnesota Jobs Skills Partnership (MJSP) works with businesses, educational institutions and nonprofit organizations to train or retrain workers, expand work opportunities and keep high-quality jobs in the state. The goal is to target short-term training for full-time employment in the growth sectors of the state’s economy.

4. Professional & Workforce Training - Anoka Technical College & Anoka Ramsey Community College

5. SciTech Intership Programs

   SciTech is a free, state-funded program that connects STEM college students to a wide variety of paid internships in small to mid-sized Minnesota companies. Qualified companies receive a wage match that covers 50% of a STEM intern’s wages (up to $2,500).