What tax forms are required for new hires?

Tax Forms Required for New Hires in Minnesota

When hiring employees in Minnesota, it is essential to collect and file specific tax forms to ensure compliance with state and federal requirements. Proper handling of these forms supports accurate payroll processing and tax reporting.

Federal Tax Forms

• Form I-9 (Employment Eligibility Verification): Verify each new hire’s eligibility to work in the U.S. This form must be completed within three days of the employee’s start date and retained for inspection.
• Form W-4 (Employee’s Withholding Certificate): Collect this form from employees to determine the correct federal income tax withholding from their paychecks.

Minnesota State Tax Forms

• Minnesota Form W-4MN (Employee’s Withholding Allowance Certificate): Minnesota requires a state-specific withholding form to calculate state income tax withholding accurately. New hires should complete this form alongside the federal W-4.
• New Hire Reporting: Employers must report all new hires to the Minnesota New Hire Reporting Center within 20 days of the hire date. This supports child support enforcement and unemployment tax compliance.

Operational Considerations

• Recordkeeping: Maintain copies of all tax forms securely for the duration required by Minnesota and federal guidelines, typically at least four years.
• Payroll Setup: Use the information from W-4 and W-4MN forms to configure payroll systems accurately for tax withholding.
• Automation: Consider using electronic onboarding tools to streamline collection and storage of tax forms, reducing errors and improving compliance.
• Compliance: Stay updated on any changes to tax forms or reporting requirements as of 2026 to avoid penalties.