Payroll tax forms may need reviews for 2010

The Payroll Department reminds employees – students, faculty and staff – that changes in Minnesota tax laws may make it worth your time to review the W-4 and MW-R tax forms, especially if you are a Wisconsin resident.

New W-4 forms
A new Form W-4, Employee’s Withholding Allowance Certificate, can be completed at any time. The information on this form is used by Payroll to determine the federal and state income taxes to withheld from paychecks. A Form W-4 remains in effect until an employee provides Payroll with a new form. Generally, employees are not required to file a new form each year. 

Note: Employees who claimed exemption from federal income tax withholding in 2009 must complete a new Form W-4 by Feb. 15, 2010, to have that exemption continue into 2010.

Employees are encouraged to file an updated Form W-4 if withholding allowances have changed or will change in the next year. If employees expect to owe more taxes or receive a large refund when filing 2009 tax returns, they may consider completing a new form. Current withholding allowances are printed on pay stubs and also are available on Murphy Online under Employee Services.  

The Internal Revenue Service has a withholding calculator on its Web site to help taxpayers determine how many withholding allowances to claim. Employees also can ask their tax advisers for assistance with completing their W-4 forms at the time their 2009 tax returns are being prepared. 

New Minnesota Reciprocity Forms (Form MW-R)
Employees who are residents of Michigan and North Dakota may file for exemption from Minnesota income tax. To do so they are required to complete a new form MW-R by Feb. 28, 2010, to continue exemption from Minnesota income tax withholding in 2010. 

Note: Effective Jan. 1, 2010, Wisconsin residents are no longer eligible for Minnesota reciprocity and they will be subject to Minnesota income tax withholding starting in 2010.

The W-4 and the Minnesota MW-R forms can be accessed from the Payroll Web site. Employees should send the completed and signed form to Payroll at Mail #AQU 221.