TAX IDENTIFICATION NUMBER Any business with employees must have: • A federal Employer Identification Number (EIN) from the IRS - Ways to apply for an EIN • A Minnesota Tax ID Number if it has employees working in Minnesota or Minnesota residents as employees - MN Tax ID Requirements Apply before you hire your first employee to avoid delays and possible penalties. The IRS issues an EIN immediately upon application completion. The same is true with the Department of Revenue issuing the MN Tax ID Number immediately upon application completion. Federal deposits are made through the Electronic Federal Tax Payment System (EFTPS); once enrolled, employers receive an EFTPS confirmation and PIN and then make deposits online or by phone. Minnesota employers must file withholding tax returns electronically using e‑Services . WITHHOLDING ALLOWANCE CERTIFICATES Withholding allowance certificates (W‑4 / W‑4MN) • Form W‑4 (federal) – Employees complete this for federal withholding; employers may direct them to the IRS Tax Withholding Estimator for help. • Form W‑4MN (Minnesota) – Employees complete this when they start work, change their federal W‑4, or claim to be exempt from Minnesota withholding. Employers must send copies of Form W‑4MN to the Minnesota Department of Revenue if any of these apply: • The employee claims more than 10 Minnesota withholding allowances. • The employee claims to be exempt from Minnesota withholding and you reasonably expect wages to exceed $200 per week (unless the employee is a resident of Michigan or North Dakota and has completed Form MWR). • You believe the employee is not entitled to the number of allowances claimed. Employers must follow the employee’s W‑4 and W‑4MN unless notified by the IRS or the Department of Revenue that a form is invalid. Penalties can apply to employees who knowingly file false forms and to employers who fail to send required copies. Furnishing wage and tax statements (W‑2) Employers must give each employee a Form W‑2 showing wages and taxes withheld: • Due to employees by January 31 following the end of the year, or within 30 days of a written request if employment ends. • Forms W‑2 may be provided electronically if employees consent and required disclosure and access rules are followed.
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