W-4MN Compliance Reminder

The recent changes to state and federal tax law require Minnesota employers to complete both a federal Form W-4 and a Minnesota Form W-4MN for new employees joining your workforce in 2020. This is necessary because the 2020 federal Form W-4 does not calculate allowances for determining Minnesota withholding tax. Failure to have the employees complete both forms may result in improper withholdings and unhappy employees when next year’s tax filing season arrives.

In addition to new hires, any employee who comes to you and requests to claim fewer withholding allowances than provided on a 2019 or prior year form W4 will need to complete the W-4MN. The new form is also required for any individual that claims more than 10 Minnesota withholding allowances or requests additional Minnesota withholding to be deducted each pay period. The same is true for any employee who claims to be exempt from Minnesota income tax withholding.

The new form is available from the Minnesota Revenue Department here.

If you have any questions, please contact Martin Kappenman at 952-921-4603 or mkappenman@prkalaw.com, or any of the Peters, Revnew, Kappenman & Anderson attorneys.