New DOR Requirements for Online Wage Levy Disclosures and Payments Effective Now

Effective March 1, the Minnesota Department of Revenue (DOR) is requiring all employers to submit all their state wage levy disclosures and payments electronically. Wage levies are a way for the state to collect money owed to them by your employees.

In the past, you would receive a letter from the state when they required you to withhold money from the wages of one of your employees for a debt owed to the state. You would then do some calculations to determine the amount to withhold from the employee’s paycheck. After withholding the money, you would then start submitting the amounts withheld to the state, usually by check, until the debt was paid off and the state notified you to stop withholding.

Now you will still receive a letter, but you will be required to go online through the DOR’s e-services to disclose how much the employee makes, along with other information, and the DOR’s e-services system will calculate the amount to withhold from the employee’s paycheck. Once you start withholding the money from an employee’s check, you will need to submit the payment through the DOR e-services, instead of sending a check.

Note that this new requirement is only for amounts owed to the state of Minnesota or one of its departments and would not apply to any amounts owed to the federal government or any garnishments received from other third parties.

Watch a Department of Revenue video on the new requirements

If you have any questions about the new requirements, contact the Department of Revenue (see information at right).

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