Minnesota’s Department of Revenue recently updated Minnesota Income Tax Withholding Instruction Booklet and Tax Tables as well as Fact Sheets 2 and 2a. The Instruction Booklet provides general direction for withholding while Fact Sheets 2 and 2a provide more detailed instructions for submitting W-2 and 1099 information, respectively. Most importantly, all three documents have advanced the reporting of documentation to the Department; both W-2s and 1099s will now be due to the Department by January 31, from February 28.
In addition to the change in reporting due dates for W-2s and 1099s, the Withholding Instruction Booklet and Tax Tables also advanced the due date for annual filers of withholding tax. Minnesota annual filers are now obliged to pay and file their withholding tax annual returns by January 31. Several other changes were made earlier this year to the Instruction Booklet when it was initially released in January including a change in the interest rate for under- and overpayment of taxes; details on tax exemptions for military pensions; the introduction of two-step verification processes for the e-Services system; changes to seasonal business withholding requirements; and changes to the tax tables. These changes were preserved in the recent revision of the Booklet.
Fact Sheet 2 details instructions for submitting W-2 information. In addition to the advanced due date, the revised Fact Sheet 2 has a new instruction for a state-specific formatting of the W-2. While Minnesota generally wants W-2 submissions provided in the federal EFW2 format, for the RS record in positions 248-267, filers should provide the seven-digit Minnesota ID, not the unemployment number as specified in the EFW2 specifications. Additionally, the updated Fact Sheet 2 provides updated instructions for filing W-2s through Minnesota’s e-Services system, reflecting recent changes to the e-Services filing system.
Fact Sheet 2a provides instructions for submitting 1099 information. As with Fact Sheet 2, 2a also provides updated instructions for using Minnesota’s e-services system.
To review the updated Minnesota Income Tax Withholding Instruction Booklet and Tax Tables, please follow this link.
To review the updated Fact Sheet 2, please follow this link.
To review the updated Fact Sheet 2a, please follow this link.