Payroll Minnesota, Unique Aspects of Minnesota Payroll Law and Practice

The Minnesota State Agency that oversees thehire-reporting agency can be reached at
collection and reporting of State income taxes800-672-4473 or 651-227-4661or on the web at does
deducted from payroll checks is:Department ofnot allow compulsory direct depositMinnesota requires
Revenuethe following information on an employee's pay
Taxpayer Info. Technical Supportstub:Gross and Net Earnings
10 River Park Plaza, Mail Station 6501Employee's name
St. Paul, MN 55146-6501Pay period ending date
(651) 282-9999Straight time and overtime pay
(800) 657-3594Hours worked
does not require you to use a state form to calculateItemized deductionsMinnesota requires that employee
state income tax withholding.Not all states allow salarybe paid no less often than every 30 days; semimonthly
reductions made under Section 125 cafeteria plans orfor public service corporations; 15-day intervals for
401(k) to be treated in the same manner as the IRSlaborers.Minnesota requires that the lag time between
code allows. In Minnesota cafeteria plans are notthe end of the pay period and the payments of
taxable for income tax calculation; taxable forwages to the employee not exceed thirty days; 15
unemployment insurance purposes. 401(k) plandays after pay period for public service
deferrals are not taxable for income taxes; taxable forcorporations.Minnesota payroll law requires that
unemployment purposes.In Minnesota supplementalinvoluntarily terminated employees must be paid their
wages are taxed at a 6.25% flat rate.You must filefinal pay immediately, or within 24 hours of demand
your Minnesota State W-2s by magnetic media if youand that voluntarily terminated employees must be
are required to file your federal W-2s by magneticpaid their final pay by the next regular payday; if
media.The Minnesota State Unemployment Insurancepayday is less than 5 days, then by second payday,
Agency is:Department of Economic Securitybut no more than 20 days after discharge.Deceased
390 N. Robert St.employee's wages of $10,000 must be paid to the
St. Paul, MN 55101surviving spouse upon request and after affidavit
(651) 296-6141showing proof of relationship is shown.Escheat laws in
State of Minnesota taxable wage base forMinnesota require that unclaimed wages be paid over
unemployment purposes is wages up toto the state after one year.There is no provision in
$22000.00.Minnesota requires Magnetic mediaMinnesota law concerning record retention of
reporting of quarterly wage reporting if the employerabandoned wage records.There is no tip credit in
has at least 50 employees that they are reporting thatMinnesota law concerning State minimum wage.In
quarter.Unemployment records must be retained inMinnesota the payroll laws covering mandatory rest or
Minnesota for a minimum period of eight years. Thismeal breaks are that a sufficient time to eat a meal
information generally includes: name; social securityduring shift of at least 8 hours; adequate time to visit
number; dates of hire, rehire and termination; wages byrestroom in each 4 hours of work; reasonable time to
period; payroll pay periods and pay dates; date andexpress breast milk (doesn't need to be
circumstances of termination.The Minnesota Statepaid).Minnesota statute requires that wage and hour
Agency charged with enforcing the state wage andrecords be kept for a period of not less than three
hour laws is:Department of Labor and Industryyears. These records will normally consist of at least
Labor Standards Divisionthe information required under FLSA.The Minnesota
443 Lafayette Rd. N.agency charged with enforcing Child Support Orders
St. Paul, MN 55155-4306and laws is:Child Support Enforcement Division
(651) 284-5005Department of Human Services
minimum wage in Minnesota is $5.15 (large employers)444 Lafayette Rd., 4th Fl. S.
and $4.90 (small employers) per hour.The generalSt. Paul, MN 55155-3846
provision in Minnesota concerning paying overtime in a(651) 296-2542
non-FLSA covered employer is one and one halfhas the following provisions for child support
times regular rate after 48-hour week.Minnesota Statedeductions:When to start Withholding? First pay period
new hire reporting requirements are that everyafter 14 days from service.
employer must report every new hire and rehire andWhen to send Payment? Within 7 days of Payday.
government contractors. The employer must reportWhen to send Termination Notice? Within 10 days of
the federally required elements of:Employee's nametermination.
Employee's date of birth.Maximum Administrative Fee? $1 per payment.
Date of hireWithholding Limits? Federal Rules under CCPA.
State of hirePlease note that this article is not updated for
Employee's addresschanges that can and will happen from time to
Employee's social security numbertime.Charles J. Read, CPA has been in the payroll,
Employer's nameaccounting and tax business for 30 years, the last
Employers addressfifteen in private practice. Mr. Read is the author of
Employer's Federal Employer Identification Number"How to Start a New Business".For Professional
(EIN) This information must be reported within 20 daysPayroll services at a Budget Price go to a Paperless
of the hiring or rehiring.Payroll Company.Go to For a full service payroll
The information can be sent as a W4 or equivalentservice bureau with CPA's on staff.See an excerpt of
by mail, fax or electronically.Mr. Read's interviews from William Shatners
There is a $25.00 penalty for a late report and $500"Heartbeat of America" television show on the
for conspiracy in Minnesota.The Minnesota newwebsites linked above.