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 manage the correct tax forms to ensure compliance with federal and state payroll requirements.

Federal Tax Forms

• Form W-4 (Employee's Withholding Certificate): Every new employee must complete Form W-4 to determine the correct federal income tax withholding from their paychecks.
• Form I-9 (Employment Eligibility Verification): Required to verify the employee’s identity and authorization to work in the United States. Employers must retain this form and make it available for inspection.

Minnesota State Tax Forms

• Minnesota Form W-4MN (Minnesota Employee Withholding Allowance Certificate): New hires must complete this form to establish state income tax withholding amounts.

Operational Considerations

• Timely Collection: Collect all required forms before the employee’s first paycheck to avoid withholding errors.
• Recordkeeping: Maintain copies of these forms securely as part of your payroll records for at least four years, as required for compliance and audits.
• Payroll System Setup: Enter withholding information from both federal and state forms accurately into your payroll system to automate correct tax deductions.
• Reporting: Use the information from these forms to complete quarterly payroll tax filings and annual reports such as Form W-2.

As of 2026, always verify that you are using the latest versions of federal and Minnesota tax forms, since withholding rules and form designs may update periodically.