Effective for tax year 2019, the Minnesota Department of Revenue (DOR) has issued revised wage bracket and computer formula withholding tables. The tables were updated to reflect changes to state law enacted earlier this year, including changes to the standard deduction, exemptions, and certain personal income tax rates [DOR, 2019 Minnesota Withholding Tax Tables, rev. 9-4-19].
Employers do not have to adjust withholding retroactively, but should use the new tables going forward. Withholding tables for 2020 will be issued by the end of January 2020.
Employees May Need to Adjust Withholding
Employees may see a change in the amount of tax withheld from their paychecks. The DOR suggests employees complete a new Form W-4MN, Minnesota Employee Withholding Allowance Certificate, to correctly adjust their state withholding. Employees can use the updated withholding tax calculator to help determine how much tax to have withheld.
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.
