Congratulations on your decision to become a new employer in Minnesota! You will need a few things in place before you run your first payroll. For Minnesota employer registration help, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts
Apply for an EIN
Apply for an employer identification number (also known as an EIN or FEIN) if you don’t already have one. The simplest (and preferred) way is to apply for an EIN with the IRS online. There is no cost to apply.
To read more about applying for EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
Enroll in EFTPS
Although it is not required, we recommend that you register for this federal tax paying system. You can easily register online. This account will be helpful for you to make tax payments online, or view whatever tax filings have been made on your behalf by Patriot.
To find out more about the EFTPS, please read our article, “What Is EFTPS?”
State of Minnesota Tax Accounts
Register With Minnesota Department of Revenue
Minnesota new employers can apply online here. You will be assigned a 7-digit tax ID number.
You will also want to sign up for e-Services with the Department of Revenue to file your state income taxes (SIT).
Register With Minnesota Unemployment Insurance & PFML
New employers in MN not already registered with UI: You will need to register for a joint UI/PFML account. Your new EIN will be used for both UI and PFML.
Employers with SOME employees not covered by UI (aka exempt from unemployment): will also need to register for a Paid Leave Only account.
Employers with ALL employees not covered by the Unemployment Insurance program (aka: exempt from unemployment, S-Corp owners): need to set up a Paid Leave Only account on the Unemployment Insurance Minnesota website.
Get Your SUTA Tax Rate
Employers in Minnesota will receive a State Unemployment Tax Assessment rate every year.
Your new employer rate is based on the average rate for the employer’s industry. You can view rates by industry on Minnesota’s website.
To learn more about SUTA rates, please read our article “What Is SUTA Tax?”
State-mandated Requirements
Sign up for Workers’ Comp Insurance
You must have workers’ comp insurance if you have at least 1 employee in Minnesota. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Minnesota here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT here.
Offer a Qualifying Retirement Plan
Minnesota requires that employers with 1 or more employees who have been in business for at least 1 year enroll in Minnesota Secure Choice Retirement Program, the state-mandated retirement program, or offer a qualifying retirement plan alternative.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee
Fill Out Form I-9
Have your employees fill out the required Form I-9. Note: You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “Form I-9 In a Nutshell” and “What Should Be in an Employee File?”
Have Employee Fill Out Federal Form W-4
Employees need to fill out the Form W-4, Employee’s Withholding Certificate, for federal income taxes.
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”
Have Employee Fill out Form W-4MN
Employees should complete the MN Employee Withholding Exemption Certificate for state income taxes (SIT).
Report New Hires
You can report new hires online with the Minnesota Department of Human Services.
Meet Minimum Wage Requirements
The 2026 minimum wage in Minnesota is $11.41/hour.
The minimum salary for employees who are exempt as bona fide executive, administrative, or professional employees will increase to $1,120 per week, or $58,240 per year.
You need to display the minimum wage poster for your employees where they can read it.
Obtain Labor Law Posters
Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information please read our help article, “What Employers Should Know About Employee Payroll Records”
This is not an all-inclusive list for new employers. Please check with the federal, state, and local governments for more information.