Last reviewed: July 2026
New Minnesota employers need four things before the first payroll runs: a federal EIN from the IRS, a withholding account with the Minnesota Department of Revenue, a SUI account with Unemployment Insurance Minnesota, and workers' compensation coverage. Register in that order, since the state accounts usually ask for the EIN.
Table of Contents
Hiring your first Minnesota employee triggers a short list of federal and state registrations. None are complicated by themselves, but doing them out of order can delay your first payroll run by a week or more. Here's the sequence that avoids that.
Registration Overview
Here's what every new Minnesota employer needs on file before payday:
- Federal Employer Identification Number (EIN)
- Minnesota withholding account (Department of Revenue)
- Minnesota SUI account (Unemployment Insurance Minnesota)
- Workers' compensation insurance
- New hire report filed within 20 days
- A payroll system that can handle federal and state withholding together
Step 1: Get Your Federal EIN
Your Employer Identification Number (EIN) is the federal tax ID for your business. Apply online at IRS.gov/EIN; it's free, and you get the number immediately.
Step 2: Register with Minnesota Revenue
Register for a withholding account with the Minnesota Department of Revenue. This lets you withhold Minnesota income tax from paychecks and remit it on the schedule Revenue assigns you.
From the Payroll Desk
Register before you post a job listing, not after someone accepts an offer. Processing is usually quick, but leaving it until the week of your first payroll adds unnecessary risk.
Step 3: Register for SUI with UI Minnesota
Register with Unemployment Insurance Minnesota. You'll receive:
- An employer account number
- Your new-employer contribution rate (1.0% for most non-construction employers in 2026, higher for construction trades)
- A quarterly filing schedule
SUI is charged on a taxable wage base of $44,000 per employee in 2026 and is paid entirely by the employer. See our Minnesota SUI Rates 2026 guide for the full rate table.
Step 4: Workers' Compensation Insurance
Nearly all Minnesota employers must carry workers' compensation insurance once they have one or more employees. Coverage comes from a private insurance carrier, and premiums vary by industry classification and claims history, so comparing quotes before you buy is worth the time.
Step 5: New Hire Reporting
Report every new hire and rehire to the Minnesota New Hire Reporting Center within 20 days of the start date. This feeds the child support enforcement system and applies regardless of how many employees you have. Our Form 941 guide covers the matching federal reporting cadence once payroll is running.
Step 6: Set Up Payroll
With registrations complete, you're ready to run payroll. Use the paycheck calculator to sanity-check a sample paycheck, and hand new hires the W-4 helper so their federal and W-4MN withholding forms come back correct the first time.
Frequently Asked Questions
Where do Minnesota employers register for unemployment insurance?
Minnesota employers register for a SUI account with Unemployment Insurance Minnesota, run by the Department of Employment and Economic Development. Registration happens online, and you'll get an employer account number and an assigned new-employer rate.
Where do Minnesota employers register for state income tax withholding?
Minnesota employers register for withholding with the Minnesota Department of Revenue. You'll receive a withholding account number used on every deposit and return you file afterward.
Do I need to register before running my first payroll in Minnesota?
Yes. Get your Revenue withholding account and your UI Minnesota unemployment insurance account set up before your first payroll, since both are needed to file and deposit state payroll taxes on time.
Simplify Minnesota Payroll
Gusto calculates, withholds, and deposits both federal and Minnesota payroll taxes automatically, and files the quarterly and annual returns that go with them. It's used by more than 300,000 small businesses.
Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of July 2026 and may not reflect recent changes in federal or Minnesota state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Minnesota law before making payroll or compliance decisions for your business.