The federal copy of Form W-2 together with Form W-3, Transmittal of Wage and Tax Statements, must be filed annually with the Social Security Administration no later than January 31. No other forms should be sent with the W-2s. The state copy of Form W-2 must be filed with the Minnesota Department of Revenue by January 31. Information Returns (1099s) that show Minnesota tax withheld should be sent with the W-2 Forms. Forms W-2 and W-3 may be obtained from the Internal Revenue Service, Online Ordering for Information Returns and Employer Return. DEFINITION OF EMPLOYER AND EMPLOYEE Generally, an employer is a person or organization for whom a worker performs a service as an employee. The employer usually provides the tools and place to work and has the right to hire and discharge an employee. A person may be an employer for purposes of one kind of tax but not for another. Generally, employees can be defined either under common law or under special statutes for special purposes. Generally speaking, a common law employee is anyone who performs services that can be controlled by an employer (what will be done and how it will be done). This is true even when the employer gives the employee freedom of action. What matters is that the employer has the legal right to control the method and result of the services. Further information on determining whether an individual is an employee is provided in the sections of this Guide titled ”Issues for Employers” and ”Checklist for Hiring an Employee“ or refer to Federal Publication 15A, Employer’s Supplemental Tax Guide .
ISSUES FOR NONRESIDENT EMPLOYERS AND EMPLOYEES
North Dakota and Michigan Residents Working in Minnesota Minnesota has tax reciprocity agreements with these states. Under these agreements, residents of North Dakota or Michigan who work in Minnesota are not required to have Minnesota income tax withheld from their Minnesota compensation if they complete Form MWR, Reciprocity Exemption/Affidavit of Residency. Instead, they pay state tax to the state in which they live. A North Dakota or Michigan resident who works in Minnesota and does not want Minnesota income tax withheld from his or her wages must complete and give to the employer Form MWR, Reciprocity Exemption/Affidavit of Residency. The employer must retain one copy for his or her records and forward one copy to the Minnesota Department of Revenue. Form MWR should be completed by the employee each year by February 28 or within 30 days after they begin working or they change their residence. The employer must send a copy of Form MWR to the Minnesota Department of Revenue no later than March 31 each year, or within thirty days after a hire of a new employee, an employee changes his or her residence, when the employee submits the form to the employer.
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