Recently enacted legislation accelerates the deadline for filing the state copy of Forms W-2 with the Minnesota Department of Revenue from February 28 to January 31.

The new rule is effective with wages paid after December 31, 2015 and forms submitted after December 31, 2016. As a result, calendar year Forms W-2 will be due by January 31, 2017. (HB 848, signed by the governor on May 24, 2016.)

Annual withholding tax return is eliminated

Effective for returns filed after December 31, 2016, the requirement that employers submit an annual withholding tax reconciliation return is eliminated.

According to the bill summary, the need for the annual reconciliation is rendered obsolete by the Department's ability to electronically identify discrepancies in withholding accounts without the need for a separate return. The bill authorizes the revenue commissioner to determine the content, format, and manner in which employers submit W-2 wage and withholding statements.

Threshold for annual return modified

The threshold for a small employer to file an annual withholding return rather than quarterly returns is permanently set at $500, eliminating the indexing of the threshold and giving the commissioner authority to provide newly eligible employers with the option of filing an annual return.

The deadline for employers that file an annual withholding return is changed from February 28 to January 31, effective for wages paid after December 31, 2015.

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