Minnesota Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

Minnesota charges state income tax. The tax formulas changed slightly in 2021, and in 29 of the past 31 years. State income tax withholding amounts are calculated from a set of 'step' formula tables that are similar to the federal "formula method" payroll tax tables.

HINT-- Turtle Creek Software provides free annual updates for US federal and Minnesota tax withholding rates, to all our payroll software users.

Minnesota State Withholding Instructions

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

  1. Choose Employees from the Accounts menu.
  2. Locate the employee 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 the Minnesota Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

Minnesota State Unemployment Tax Instructions

Minnesota charges state unemployment tax on the first $35,000 of wages for each employee (2021 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 the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the SUTA tax in the list, and double-click on it. HINT: If you don't see 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 with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used

Minnesota Tax Contacts

Withholding tax website

Payroll Tax Office-- 800 657-3594
SUTA-- 612 296-6141

Minnesota Fiduciary Income Tax
Mail Sta 7131
St. Paul MN 55146-7131

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.