Filing requirements: • Federal copies of Forms W‑2, plus Form W‑3 , must be filed with the Social Security Administration by January 31 . • Minnesota copies of W‑2s and any 1099s with Minnesota tax withhel d must be filed with the Minnesota Department of Revenue, also by January 31. Most employers must submit W‑2 and 1099 information electronically; see Submitting Form W-2 and W-2c Information - Withholding Tax Fact Sheet 2 and S ubmitting Form 1099 Information - Withholding Tax Fact Sheet 2a. Who is an employer and who is an employee? In general, an employer is a person or organization for whom a worker performs services as an employee , usually with the employer providing tools and a place to work and having the right to hire and fire. A person may be an employer for one tax but not another. Under common law , an employee is someone whose work (what is done and how it is done) is controlled or has the right to be controlled by the employer, even if the worker has some freedom in how they do the job. For more detail, see this Guide’s sections “Issues for Employers” and “Checklist for Hiring an Employee”, and IRS Publication 15‑A, Employer’s Supplemental Tax Guide.
Special issues for nonresident employers and employees North Dakota and Michigan residents working in Minnesota
Minnesota has reciprocity with North Dakota and Michigan. Residents of those states who work in Minnesota can avoid Minnesota withholding if they complete Form MWR, Reciprocity Exemption/ Affidavit of Residency, and instead pay income tax to their home state. • Employees must give Form MWR to their employer each year by February 28 , or within 30 days after starting work or changing residence. • Employers keep one copy and send one copy to the Minnesota Department of Revenue, generally by M arch 31 or within 30 days of receiving it for new hires or changes. Employees of interstate carriers • Interstate truck, bus, and rail carriers generally withhold income tax only for the employee’s state of residence when employees regularly work in multiple states. • Interstate air carriers with employees who work in multiple states may need to withhold for the state of residence and any state where more than 50 percent of the employee’s compensation is earned (based on scheduled flight time).
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