The Minnesota Department of Revenue released revised 2019 withholding wage-bracket tables and the computer formula that reflect legislation enacted earlier this year (HF 5).
Under the law, the second-tier income tax rate bracket is reduced from 7.05% to 6.8% and the income tax brackets for all tiers are adjusted.
Employers should begin using the updated tables as soon as possible, but there is no need to retroactively apply the revisions to state income tax already withheld.
The withholding tables and computer formula are updated to reflect changes to the standard deduction, exemptions, and rates. The Department’s Withholding Tax Calculator is also revised to reflect the income tax table changes.
The Department suggests that employees consider submitting a new Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, to correctly determine their Minnesota withholding
allowances in light of the legislative changes.
The 2019 withholding tables and computer formula within the Minnesota withholding guide are updated. iSolved will incorporate these changes with its September 26th update.
The Department plans to release 2020 forms, instructions, and tax tables by the end of January 2020.