Household Employees

You are not required to withhold Minnesota income tax from household employees’ wages. You may withhold Minnesota income tax if a household employee asks you to withhold and you agree to do so.

If Minnesota income taxes are not withheld, the employee may be required to pay estimated income tax. For details on estimated taxes:

• See our Estimated Tax page
• Email individual.incometax@state.mn.us
• Call us at 651-296-3781 or 1-800-652-9094

If you agree to withhold tax, you must have a Minnesota Tax ID Number and be registered for withholding tax. The Minnesota Department of Revenue may assess you a $100 penalty if you fail to do so.

If you are a new employer, see Withholding Fact Sheet 10, New Employer Guide, for important information. If you do not have a Minnesota ID number, apply online or call us at 651-282-5225 or 1-800-657-3605.

If you already have a Minnesota ID number for other taxes for the same business, you can use the same number for withholding tax. To update your account, log in to our e-Services system. You will need to activate a withholding tax account.

If your household employee asks you to withhold and you agree, follow the same rules for withholding on wages. For details, see Minnesota Income Tax Withholding instructions.

Minnesota Withholding Allowances
Have the employee complete a Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate when they want to begin withholding. This will determine the number of Minnesota withholding allowances they may claim.

If an employee completed a federal Form W-4 from 2019 or prior years, you may continue to use the allowances determined on that form. If the employee completes a new Form W-4, they must complete a new Form W-4MN for Minnesota withholding allowances.

For details, see Withholding Fact Sheet 9, Definition of Wages and Withholding Fact Sheet 10, New Employer Guide.

For payment options, see our Make a Payment under for businesses.

You’re required to pay electronically if any of these apply:

• You withheld more than $10,000 during the last 12-month period ending June 30
• You are required to electronically pay any other Minnesota business tax
• You use a payroll service company

If you’re required to pay business taxes electronically for one year, you must do so for all future years.

You must electronically file all Minnesota withholding tax returns, including past-due and amended returns. To file electronically, log in to e-Services.

If you have a household employee, you may be subject to Social Security, Medicare, and federal unemployment taxes. You may withhold federal income taxes if you and the employee agree to do so. For details, see IRS Publication 926.

You may also be liable for state unemployment tax. For details, go to the Department of Employment and Economic Development website or call 651-296-6141.

For requirements, see Withholding Fact Sheet 10, New Employer Guide.