Minnesota Payroll Instructions

Minnesota State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

1. Open the Payroll tab on the left, and choose Employees.
2. Locate the employee's record.
3. Click the Payroll Setup button.
4. Enter the employee's marital status into the Marital Status field (see note below).
5. Enter the number of federal dependents into the Federal Exemptions field.
6. Enter the number of Minnesota dependents into the State Exemptions field.
7. Enter a Minnesota Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see Minnesota packages in the list, you'll need to import 2022 tax info first.
8. Click OK.

Minnesota State Unemployment Tax Instructions

Minnesota charges state unemployment tax on the first $41,000 of wages for each employee (2023 rate). For new employers, the starting SUTA rate is either 2.32% or 8% depending on industry (construction gets the higher rate). After the first year, the rate paid by each employer depends on their past layoff history.

In some years, there may also be an Additional Assessment, Federal Loan Interest Assessment, and/or Workforce Enhancement Fee that are added to the initial SUTA rate.

To enter the Minnesota SUTA tax rate for your business into Goldenseal payroll software, follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
2. You'll see a list of Tax Items. Open the Minnesota SUTA item. HINT: If you don't see Minnesota SUTA in the list, you'll need to import the Minnesota payroll info first.
3. Enter the percentage rate that you pay into the percentage field next to the Calculation method.
4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Minnesota Marital Status

Enter one of the following in the Marital Status field for each employee account:

• Single- single employee with one personal exemption
• Married- married employee filing jointly (two personal exemptions)
• Dual Income- married employee filing separately (one personal exemption)
• Head of House- employee claims Head of Family status
• Other- not used

State Tax Contacts

Website

Little Known Minnesota Tax Fact

Minnesota residents are allowed to claim up to 30 mosquitos as dependents on state income tax forms. The allowance was increased from 25 in late 2015, thanks to efforts by State Senator Steve "Slappy" Slapinski.

Use form MN-25MSQ to claim this credit.

Official State Lawn Ornament

Pink plastic flamingo wearing earmuffs and scarf.