Minnesota Income Tax Withholding Instruction Booklet And Tax Tables - Minnesota Department Of Revenue - 2016 Page 7
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34Determine Amount to Withhold
Wages
Overtime, Commissions, Bonuses
and Other Supplemental Payments
Determine the Minnesota income tax with-
• Method 2: Use the tax tables to deter-
Supplemental payments made to an
holding amount each time you pay wages to
mine how much to withhold from the
employee separately from regular wages are
an employee. For details, see Fact Sheet 9.
regular wages alone. Multiply the supple-
subject to the 6.25 percent Minnesota with-
mental payment by 6.25 percent (.0625)
1. Use each employee’s total wages for the
holding regardless of the number of with-
to determine how much to withhold from
pay period before any taxes are deducted.
holding allowances the employee claimed.
that payment.
For nonresidents, use only the wages paid
Multiply the supplemental payment by 6.25
for work performed in Minnesota.
If you do not list the regular wages and the
percent (.0625) to calculate the Minnesota
2. Use each employee’s Minnesota with-
supplemental payment separately on the
withholding.
holding allowances and marital status as
employee’s payroll records, you must use
If you make supplemental payments to an
shown on the employee’s Form W-4 or
Method 1.
employee at the same time you pay regular
W-4MN.
wages and you list the two payments sepa-
Backup Withholding
3. Using the information from steps 1 and
rately on the employee’s payroll records
Minnesota follows the federal provisions
2, determine the Minnesota income tax
(regardless of whether you list the amounts
for backup withholding on payments for
withholding from the tables on pages
separately on the paycheck), choose one of
personal services. Personal services include
16-33 of this booklet. Use the appropri-
the following methods to determine how
work performed for your business by a
ate table based on how often you pay
much to withhold:
person who is not your employee. If the
the employee and the marital status of
person performing services for you does not
• Method 1: Add the regular wages to the
the employee. If you use a computer to
provide a Social Security or tax ID number
supplemental payment and use the tax
determine how much to withhold, use the
or if the number is incorrect, you must
tables to find how much to withhold from
formula on page 34.
withhold tax equal to 9.85 percent (.0985) of
the total.
Note: If an employee’s wages or withholding
the payment(s). If you do not, you may be
allowances change or if you change the
assessed the amount you should have with-
number of times you pay your employee per
held. The assessment is subject to penalty
month, the amount you withhold may also
and interest.
change.
Withholding Tax Calculator
This new tool can help you calculate Minnesota withholding tax on:
• Regular wages (employee payroll)
• Supplemental payments (overtime, commissions, and bonuses)
• Payments made for personal services
• Payments dated January 1, 2009 – end of current year
To use the calculator, go to and type Withholding
Tax calculator in the Search box.
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