With the rise of remote work, more Minnesotans are working from home than ever before. According to 2022 data released in 2023 by the Census report and various articles, the percentage of remote workers in Minnesota has seen a significant increase.
What Constitutes a Remote Worker?
- Version 1: A remote worker lives and works within Minnesota.
- Version 2: They live outside Minnesota but work for a Minnesota-based business. Certain states have reciprocity agreements with Minnesota regarding income tax.
- Version 3: Distinguishing between contractors and direct employees is crucial. Contractors handle their own taxes, while direct employees require proper payroll management.
Business Registration Requirements
To hire remote employees, businesses must register with the Minnesota Department of Revenue and comply with state tax laws. For workers outside Minnesota, businesses may need to register in the state where the employee resides.
Working with Haworth & Company, Ltd.
Navigating payroll for remote employees can be complex. Haworth & Company, Ltd. provides expert guidance and support for Minnesota small businesses, ensuring compliance with payroll tax laws and efficient payroll management. Let us help streamline your payroll processes, allowing you to focus on growing your business.
Disclaimer: This blog content is for general informational purposes only, should not be considered professional advice, and does not establish a client relationship. Haworth and Company is not liable for the accuracy of this information or the content of external links. Please use this information at your own risk, ensuring it suits your specific needs, and consult with a certified tax professional for your own personalized guidance.
