Payroll Minnesota, Unique Aspects of Minnesota Payroll Law and Practice

The Minnesota State Agency that oversees thenew hire-reporting agency can be reached at
collection and reporting of State income taxes800-672-4473 or 651-227-4661or on the web at
deducted from payroll checks is:Department ofdoes not allow compulsory direct depositMinnesota
Revenuerequires the following information on an
Taxpayer Info. Technical Supportemployee's pay stub:Gross and Net Earnings
10 River Park Plaza, Mail Station 6501Employee's name
St. Paul, MN 55146-6501Pay period ending date
(651) 282-9999Straight time and overtime pay
(800) 657-3594Hours worked
does not require you to use a state form toItemized deductionsMinnesota requires that
calculate state income tax withholding.Not allemployee be paid no less often than every 30
states allow salary reductions made under Sectiondays; semimonthly for public service corporations;
125 cafeteria plans or 401(k) to be treated in the15-day intervals for laborers.Minnesota requires
same manner as the IRS code allows. Inthat the lag time between the end of the pay
Minnesota cafeteria plans are not taxable forperiod and the payments of wages to the
income tax calculation; taxable for unemploymentemployee not exceed thirty days; 15 days after
insurance purposes. 401(k) plan deferrals are notpay period for public service
taxable for income taxes; taxable forcorporations.Minnesota payroll law requires that
unemployment purposes.In Minnesotainvoluntarily terminated employees must be paid
supplemental wages are taxed at a 6.25% flattheir final pay immediately, or within 24 hours of
rate.You must file your Minnesota State W-2s bydemand and that voluntarily terminated
magnetic media if you are required to file youremployees must be paid their final pay by the
federal W-2s by magnetic media.The Minnesotanext regular payday; if payday is less than 5
State Unemployment Insurance Agencydays, then by second payday, but no more than
is:Department of Economic Security20 days after discharge.Deceased employee's
390 N. Robert St.wages of $10,000 must be paid to the surviving
St. Paul, MN 55101spouse upon request and after affidavit showing
(651) 296-6141proof of relationship is shown.Escheat laws in
State of Minnesota taxable wage base forMinnesota require that unclaimed wages be paid
unemployment purposes is wages up toover to the state after one year.There is no
$22000.00.Minnesota requires Magnetic mediaprovision in Minnesota law concerning record
reporting of quarterly wage reporting if theretention of abandoned wage records.There is no
employer has at least 50 employees that theytip credit in Minnesota law concerning State
are reporting that quarter.Unemployment recordsminimum wage.In Minnesota the payroll laws
must be retained in Minnesota for a minimumcovering mandatory rest or meal breaks are that
period of eight years. This information generallya sufficient time to eat a meal during shift of at
includes: name; social security number; dates ofleast 8 hours; adequate time to visit restroom in
hire, rehire and termination; wages by period;each 4 hours of work; reasonable time to
payroll pay periods and pay dates; date andexpress breast milk (doesn't need to be
circumstances of termination.The Minnesota Statepaid).Minnesota statute requires that wage and
Agency charged with enforcing the state wagehour records be kept for a period of not less
and hour laws is:Department of Labor andthan three years. These records will normally
Industryconsist of at least the information required under
Labor Standards DivisionFLSA.The Minnesota agency charged with
443 Lafayette Rd. N.enforcing Child Support Orders and laws is:Child
St. Paul, MN 55155-4306Support Enforcement Division
(651) 284-5005Department of Human Services
minimum wage in Minnesota is $5.15 (large444 Lafayette Rd., 4th Fl. S.
employers) and $4.90 (small employers) perSt. Paul, MN 55155-3846
hour.The general provision in Minnesota concerning(651) 296-2542
paying overtime in a non-FLSA covered employerhas the following provisions for child support
is one and one half times regular rate afterdeductions:When to start Withholding? First pay
48-hour week.Minnesota State new hire reportingperiod after 14 days from service.
requirements are that every employer mustWhen to send Payment? Within 7 days of
report every new hire and rehire and governmentPayday.
contractors. The employer must report theWhen to send Termination Notice? Within 10
federally required elements of:Employee's namedays of termination.
Employee's date of birth.Maximum Administrative Fee? $1 per payment.
Date of hireWithholding Limits? Federal Rules under CCPA.
State of hirePlease note that this article is not updated for
Employee's addresschanges that can and will happen from time to
Employee's social security numbertime.Charles J. Read, CPA has been in the payroll,
Employer's nameaccounting and tax business for 30 years, the last
Employers addressfifteen in private practice. Mr. Read is the author
Employer's Federal Employer Identificationof "How to Start a New Business".For Professional
Number (EIN) This information must be reportedPayroll services at a Budget Price go to a
within 20 days of the hiring or rehiring.Paperless Payroll Company.Go to For a full service
The information can be sent as a W4 orpayroll service bureau with CPA's on staff.See an
equivalent by mail, fax or electronically.excerpt of Mr. Read's interviews from William
There is a $25.00 penalty for a late report andShatners "Heartbeat of America" television show
$500 for conspiracy in Minnesota.The Minnesotaon the websites linked above.