State guide
How to Register for Minnesota Payroll Taxes
Let a dedicated tax manager file your Minnesota registrations with you, or use the step-by-step guide below.
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At a glance
2 agencies: Department of Revenue and Unemployment Insurance Minnesota
One employer account covers UI and Paid Leave
$44,000 UI wage base in 2026
New hires due within 20 days
Done for you
Minnesota accounts, filed right
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In Minnesota that means a withholding tax ID with the Minnesota Department of Revenue and an employer account with Unemployment Insurance Minnesota, which also covers Paid Leave.
- One tax manager who owns your file
- Revenue and UI registrations filed with you
- New hire reporting set up for the 20-day rule
- Account numbers confirmed before payroll
Hands-on help from a real person who knows Minnesota employer accounts. Use it alone or with managed payroll.
Quick answer
Minnesota payroll tax registration at a glance
Minnesota uses two main agencies. The Minnesota Department of Revenue issues a seven-digit Minnesota Tax ID for withholding, and you must register before you withhold Minnesota tax. Unemployment Insurance Minnesota, part of DEED, issues the employer account you use for unemployment insurance and, starting in 2026, Paid Leave premiums.
In 2026, UI tax applies to the first $44,000 of each employee's wages, and Paid Leave premiums are 0.88% of wages up to the Social Security wage base ($184,500 in 2026). New hires are reported within 20 days.
Who must register
Who registers in Minnesota
Withholding starts before your first Minnesota paycheck.
| Situation | Minnesota requirement |
|---|---|
| You will withhold Minnesota income tax from wages | Register with the Department of Revenue before you start withholding |
| You pay covered wages in Minnesota | Register with Unemployment Insurance Minnesota after you pay first wages and before your first quarterly wage detail report is due |
| You have UI-covered employees | Report and pay Paid Leave premiums through the same UI and Paid Leave employer account |
| You have employees | Carry workers' compensation; there is no minimum number of employees |
| Employees live in Michigan or North Dakota | Reciprocity may apply when the employee gives you Form MWR |
Registration steps
How to register in Minnesota
Two registrations, both online or by phone.
- Get a Minnesota Tax ID from the Department of Revenue online through e-Services or by phone, before you withhold. Registering late can bring a $100 penalty.
- Note your seven-digit Minnesota Tax ID. Your payroll provider needs it for every deposit and return.
- Register with Unemployment Insurance Minnesota online or at 651-296-6141 as soon as possible after you pay first wages, before your first quarterly wage detail report is due. Do not register before wages are paid.
- Set up Paid Leave in the same employer account. Premium reporting is quarterly, with the first report due April 30, 2026. Then designate a Paid Leave Administrator on the Paid Leave website (paidleave.mn.gov).
- Collect Form W-4MN from each new employee. If you don't get one, withhold as single with zero allowances.
- Report each new hire within 20 days online through the Minnesota New Hire Reporting Center (mn-newhire.com).
More than withholding
Withholding, UI and Paid Leave
Minnesota added Paid Leave premiums in 2026, on top of withholding and UI.
On your own
- A Revenue tax ID before your first withholding
- A UI account timed to your first wages
- Deposit schedule changes as payroll grows
With your PayAdvisors tax manager
- Your tax manager files it with you
- We register UI and Paid Leave together
- You get one calendar for every filing
Handled by your tax manager.
Prepare
What to collect first
Have these ready before you apply.
- Your federal EIN and business details for the Department of Revenue
- The date you first paid wages in Minnesota
- Form W-4MN from each new employee
- Form MWR from any Michigan or North Dakota residents claiming reciprocity
- Your industry, which sets the new employer UI rate
Accounts
What you end up with
Two numbers.
- A seven-digit Minnesota Tax ID from the Department of Revenue for withholding deposits and returns.
- A UI employer account with Unemployment Insurance Minnesota, which is also your Paid Leave account.
Rates
Minnesota 2026 payroll tax numbers
Figures published for 2026.
| Item | Figure |
|---|---|
| UI taxable wage base | First $44,000 per employee (2026) |
| New employer UI rate | Set by industry; 2026 non-construction rates run 1.00% to 4.06%, plus the 0.40% base tax rate and a 14% additional assessment on the resulting tax |
| Maximum experience UI rate | 8.90% (2026) |
| Paid Leave premium | 0.88% of wages up to the Social Security wage base ($184,500 in 2026); 0.66% for qualifying small employers (2026 and 2027) |
| Employee share of Paid Leave | Employers may deduct up to 0.44% |
| Backup withholding | 9.85% |
Pitfalls
Minnesota mistakes to avoid
Most problems come from timing.
- Withholding before you register. The Department of Revenue can charge $100.
- Registering for UI too early. Wait until wages are paid, then register before the first wage detail report is due.
- Not sending required W-4MNs. The penalty is $50 for each W-4MN not sent when required.
- Forgetting Paid Leave. Premiums are reported quarterly through the UI and Paid Leave account.
- Missing a faster deposit schedule. Withholding over $1,500 in the previous quarter moves you to monthly or semiweekly deposits.
Related duties
Other Minnesota employer obligations
These run alongside the tax accounts.
- New hire reporting. Report new hires within 20 days of hire through the Minnesota New Hire Reporting Center (mn-newhire.com). Electronic reporters may send reports twice monthly, 12 to 16 days apart.
- Workers' compensation. Generally required for any business with employees, with no minimum headcount.
- Paid Leave. Quarterly premium reports and payments through the joint account, plus a Paid Leave Administrator designated on the Paid Leave website (paidleave.mn.gov).
Filing calendar
Minnesota deadlines after registration
Quarterly returns, deposits on your schedule.
- Withholding returns: filed electronically by April 30, July 31, October 31 and January 31. Annual filing is available only if you withheld $500 or less in the prior year.
- Withholding deposits: semiweekly or monthly (by the 15th) if you withheld more than $1,500 in the previous quarter; otherwise quarterly.
- UI wage detail reports and Paid Leave premium reports: quarterly; Paid Leave's first report was due April 30, 2026.
Official links
Minnesota agency links
Official forms, rates and guidance.
- Minnesota Department of Revenue: New Employer Guide
- Minnesota Department of Revenue: Withholding tax due dates
- Minnesota Department of Revenue: 2026 Minnesota Withholding Tax Instructions and Tables
- Unemployment Insurance Minnesota: Tax rates
- Unemployment Insurance Minnesota: New employer rates
- Unemployment Insurance Minnesota: New registration
- Minnesota Paid Leave: Premium rate and contributions
- Minnesota New Hire Reporting Center: Reporting fundamentals
- Unemployment Insurance Minnesota: Paid Leave employer accounts
- Minnesota Department of Labor and Industry: Who needs workers' compensation coverage
Minnesota registration questions
How do I register for Minnesota payroll taxes?
Get a Minnesota Tax ID from the Department of Revenue before you withhold, then register with Unemployment Insurance Minnesota after you pay first wages. The UI account also handles Paid Leave.
What is the Minnesota new employer unemployment rate?
It depends on your industry. For 2026, non-construction new employer rates run from 1.00% to 4.06%, plus the 0.40% base tax rate and a 14% additional assessment on the resulting tax, applied to the first $44,000 of each employee's wages.
Do I need to register for Minnesota Paid Leave separately?
Not for premiums. Paid Leave registration and payments use the same employer account as unemployment insurance at Unemployment Insurance Minnesota. Most employers also designate a Paid Leave Administrator on the Paid Leave website (paidleave.mn.gov) to handle employee leave applications.
How fast must I report new hires in Minnesota?
Within 20 days of hire, online through the Minnesota New Hire Reporting Center (mn-newhire.com).
Do I file monthly or quarterly withholding in Minnesota?
Returns are quarterly. Deposits are semiweekly or monthly if you withheld more than $1,500 in the previous quarter, and quarterly otherwise.
I am the only employee of my S corporation. What do I need in Minnesota?
If you pay yourself wages, you need the Department of Revenue withholding account, and the UI and Paid Leave rules may also apply to you. A dedicated tax manager can complete the registration with you as part of our S corp payroll package.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. It summarizes official guidance from Minnesota state agencies. Ask your CPA or tax advisor about your own facts.
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Next step
Let us set up Minnesota with you
A dedicated tax manager files your Department of Revenue and Unemployment Insurance Minnesota registrations with you, sets up new hire reporting and confirms your accounts before your first payroll. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
About this guide
Last verified and sources
Last verified October 29, 2026 against Minnesota state agency pages. This guide is general information, not tax or legal advice.
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- Oklahoma payroll tax registration guide
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- Iowa payroll tax registration guide
- Kansas payroll tax registration guide
- Arkansas payroll tax registration guide
- New Mexico payroll tax registration guide
- North Dakota payroll tax registration guide
- South Dakota payroll tax registration guide
- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
- Payroll processing
- Our services
Sources
- Minnesota Department of Revenue, New Employer Guide
- Minnesota Department of Revenue, Withholding Tax Due Dates
- Unemployment Insurance Minnesota (DEED), Tax Rates
- Unemployment Insurance Minnesota, New Employer Rates
- Unemployment Insurance Minnesota, Employer Handbook: New Registration
- Minnesota Paid Leave, Premium rate and contributions
- Unemployment Insurance Minnesota, Paid Leave employer accounts
- Minnesota Statutes 142A.29, New hire reporting (Revisor of Statutes)
- Minnesota Department of Labor and Industry, Who needs workers' compensation coverage
- Minnesota Department of Revenue, 2026 Minnesota Withholding Tax Instructions and Tables (PDF)
- Minnesota New Hire Reporting Center, Reporting Fundamentals
- Social Security Administration, Contribution and benefit base