pay by check, they can create a payment voucher found on the Minnesota Department of Revenue website for federal payments, the employer will automatically be enrolled in the Electronic Federal Tax Payment System—EFTPS—so they can make all deposits online or by phone. Within a few days they will receive by mail an EFTPS enrollment confirmation, as well as a Personal Identification Number (PIN) and complete instructions for using EFTPS. The employer will need to wait until they receive the EFTPS information in the mail before making a payment electronically. Once they receive the EFTPS Confirmation Package, they can begin making EFTPS payments. WITHHOLDING ALLOWANCE CERTIFICATES Federal Form W-4, Employee’s Withholding Certificate, is completed by the employee at the time of hiring, and is used by the employer to determine how much federal tax to withhold from the employee‘s paycheck. Employers may refer employees to the IRS Tax Withholding Estimator to determine how to fill out Form W-4. The Minnesota Department of Revenue provides Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, for state tax withholding. An employee must complete Form W-4MN any time they start employment or change their federal Form W-4, or claims to be exempt from Minnesota income tax withholding. You must send copies of Form W-4MN to the Minnesota Department of Revenue if any of the following apply: – The employee claims more than 10 Minnesota withholding allowances: or – The employee claims to be exempt from Minnesota withholding and you reasonably expect the employee’s wages to exceed $200 per week (Exception: if 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 The employer should honor the employee’s W-4 or W-4MN unless notified by the Internal Revenue Service or the Minnesota Department of Revenue that the form is not valid. Penalties apply to employees knowingly filing incorrect W-4 or W-4MN forms and employers who fail to provide federal or state tax authorities with, Forms W-4 or W-4MN when required. FURNISHING WAGE AND TAX STATEMENT TO EMPLOYEES The employer must issue a wage and tax statement, federal Form W-2, to each employee on or before January 31 of the following year, or within 30 days of a written request from the employee if his or her employment was terminated. Employers may furnish Form W-2 to employees electronically provided certain criteria are met. Employees must affirmatively consent to receive the Form W-2 in an electronic format and prior to, or at the time of the consent, the employer must provide a disclosure statement containing certain disclosures. Additionally, the electronic version of Form W-2 must contain all required
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