📝 Overview
This guide covers state tax information for employers running payroll in Minnesota. Use the sections below to find agency contact information, supported tax filings, and the account details required for tax setup.
⚙️ Minnesota Tax Information
Click the arrow to view Withholding information
Click the arrow to view Withholding information
Agency Information
Website: Minnesota Department of Revenue
Phone: (651) 282-9999
Supported Tax Filings
Quarterly Withholding Tax Return (Form MW-1)
Wage and Tax Statement (W-2)
Required for Tax Setup
Tax ID Number (7 digits, e.g., 1234567)
Deposit Frequency (Semi-Weekly, Monthly, Quarterly, or Annually)
Click the arrow to view Unemployment Insurance information
Click the arrow to view Unemployment Insurance information
Agency Information
Website: Minnesota Department of Employment and Economic Development
Phone: (651) 296-6141, Option 4
Supported Tax Filings
Employer's Unemployment Quarterly Tax Report (Form MDES-1)
Required for Tax Setup
Employer Account Number (8 digits, e.g., 12345678)
Unemployment UI Tax Rate (X.XX%)
Workforce Development Assessment (0.10%)
Third Party Administrator (TPA) Access
DaySmart Payroll needs granted TPA access to pay and file this tax. Follow the instructions below to ensure there are no delays in processing:
Log in to the Minnesota Unemployment Insurance account
Select Account Maintenance, then Agent Authorization
Select New
In the Agent ID field, enter AG022877
On Agent Details, enter the following:
Beginning Start Date: Select the first day of the quarter payroll began (January 1, April 1, July 1, or October 1)
If the system will not allow backdating, enter today's date
Effective End Date: Leave this blank
In the Available Roles section, select the following three roles:
Wage Detail Update and Submit
Tax Payment Update and Submit
Paid Leave Account Maintenance Update and Submit
Select Save
In the Assigned Roles section, find the role Wage Detail Update and Submit
Under Modify, select Assign Employer Reporting Units, then check the box next to Assign All Employer Reporting Units
Select Save
Select Previous and repeat steps 8–10 for each role listed in step 6
Select Update to complete the process
Click the arrow to view Paid Family & Medical Leave (PFML) information
Click the arrow to view Paid Family & Medical Leave (PFML) information
Minnesota Paid Family and Medical Leave is administered by the Department of Employment and Economic Development. See the Unemployment Insurance section above for agency contact information and portal links.
Required for Tax Setup
Does the business contribute to PFML?
Total number of employees working in Minnesota
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
Click the arrow to view frequently asked questions
Click the arrow to view frequently asked questions
What is the Minnesota Workforce Development Assessment and do I need it for setup?
Click the arrow to see the answer
Click the arrow to see the answer
The Workforce Development Assessment is a fixed-rate surcharge applied to all Minnesota employers' unemployment insurance contributions, set at 0.10%. It is included as a sub-component of your UI Tax Rate during setup. No separate lookup is required; the rate is the same for every employer.
Where do I find my Minnesota withholding Tax ID Number?
Click the arrow to see the answer
Click the arrow to see the answer
Your Minnesota withholding Tax ID Number is a 7-digit number assigned by the Minnesota Department of Revenue when you register. It can be found on agency correspondence or by logging into your e-Services account at mndor.state.mn.us.
What roles should I select when granting TPA access for Minnesota UI?
Click the arrow to see the answer
Click the arrow to see the answer
When granting TPA access in Minnesota Unemployment Insurance, select these three roles: Wage Detail Update and Submit, Tax Payment Update and Submit, and Paid Leave Account Maintenance Update and Submit. After saving, you must also assign all Employer Reporting Units to each role individually.