Accounting & Bookkeeping & Small Business Forum

[Guest]

I have a client that I am now filing their quarterly returns/deposits for. I am in the process of filing the quarterly employer tax report and wage details. My question is this. My client recently hired a new employee that resides in one state (Wisconsin), but works in another (Minnesota) which is where the business is established. The employee has WI state income tax withheld from her paychecks. Would she be included in wage detail reporting and the Employers Unemployment Quarterly Tax Report for Minnesota or do I need to do a separte one for Wisconsin?

Thank you in advance for your help.

[Guest]

Becky: Out of kindness of heart your client is making more work for himself and is taking a greater risk for penalties. Wages are reciprocal between Minnesota and wisconsin. The business could of chosen NoT to withhold Wisconsin tax. Since they have, you will be forced to file 3 wage reports. Federal, Wisconsin, and Minnesota.

I had a prospect in Minnesota who had 29 Minnesota residents and one Wisconsin on a weekly payroll. I called Wisconsin DOR and they told me the employer could rescind its withholding agreement which would simplify their filing.

REMEMBER THE RECIPROCAL AGREEMENT BETWEEN MN AND WI IS FOR WAGES ONLY.

[Guest]

Becky: I responded to your question before reading your question closely. The wages reports would be 3 (fed MN WI )like I stated however you would pay unemployment to Minnesota and the feds. Also do not forget to file the new hire report Have any questions feel free to contact me by email or phone. 651-674-8748.

Richard

[Guest]

Thank you Richard. This helps.

Becky