Minnesota Releases 2021 Withholding Methods

Minnesota’s 2021 withholding methods were released Jan. 1 by the state revenue department.

Compared to the 2020 withholding formula, the 2021 formula increases the value of a state allowance to $4,350, from $4,300, and adjusts the tax-bracket thresholds.

When employers receive a lock-in letter from the Internal Revenue Service for an employee, they must send the department a copy of the employee’s Form W-4MN, Minnesota Withholding Allowance Certificate, and the department is to notify the employer if the employee’s number of allowances must be changed, it said. Previously, the number of allowances specified in the letter could also be used ...