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!!!US W2 ANNUAL AND QUARTERLY PROCESSING - MINNESOTA

!!Set Up 
This document contains abbreviated set up requirements for the State of Minnesota only.  Please refer to the general document ([Tax Reporting - US General]) for other setup procedures that may also be required.

!IMUF – Define User Fields for IDGV
Define the user fields for [P2K_CM_GOVT_REGISTRATIONS].  The following user fields are used on the [IDGV Definition|IDGV#DefinitionTab] tab, therefore they must set up on [IMUF]:
*W2 STATE MEDIA FILING
*W2 TAX TYPE CODE
*W2 TAXING ENTITY
*W2 WAGE PLAN CODE
*W2 BRANCH CODE

!IMUF – Define User Fields for IDDP 
Define user fields for [P2K_CM_DEPARTMENT_DETAILS].  The following user fields are used on [IDDP], therefore they must set up on [IMUF]:
*SUI ER NUMBER
*W2 DESTINATION

!IMUF – Define User Fields for IEID 
Define User Fields for [P2K_HR_IDENTITIES].  The following user fields are used on [IEID] for Minnesota, therefore they must set up on [IMUF]:
*W2 DESTINATION
*MMREF PROBATIONARY
*MMREF OFFICER CODE
 
!IDGV – Government Registration for the State
Define state government registrations for the State of Minnesota.  
*Enter the Minnesota State Employer Account Number on the ‘Number’ field
*‘W2 STATE MEDIA FILING’ - enter ‘02’ to generate the State of Minnesota Magnetic Media file for MN State only
 
!IDGV – Government Registration for SUI
Define ‘US SUI Registration’ for Minnesota State
*Enter the State of Minnesota SUI Employer Account Number in the ‘Number’ field.  This number may be the same or different than the State Employer Account Number defined with ‘State Registration’
*On the ‘Govt Rate Type’ field, select ‘US SUI Max Base Amt’ and enter the Minnesota SUI Wage Base in the Amount field
*The SUI Wage Base amount must be updated every year to reflect the most current Wage Base amount from the State of Minnesota
**This SUI Wage Base amount is used to calculate SUI Excess Wages and Taxable Wages
*Effective date record, enter ’01-Jan-20YY’ to define the SUI Wage Base amount.  This field must be updated annually
*There is no need to set up the [IDGV Definition|IDGV#DefinitionTab] tab for ‘US SUI Registration’ for Minnesota
*When [RPYEU] is run, if the Period Type = ‘Q’ Quarterly Reporting, the SUI information will automatically be derived and written on the Code RS record for the magnetic media file


!!IDDP – Define Departments
*The State of Minnesota requires reporting of the Quarterly file by MN State Unemployment Insurance Account Number and MN Employer Unit Number.  These two numbers are defined at the department level.  For this reason, the UDF ‘SUI ER Number’ must be set up for each department\\Example: For the Department ‘Planning & Zoning’, the MN number is ‘7977999-004’,  then UDF ‘SUI ER Number’ = 7977999-004 should be entered on [IDDP].
*If the ‘SUI ER Number’ is not set up for a department, then the SUI ER Number from [IDGV] is used
*Note that on [IDDP], the detail section of the screen must be clicked and then the UDF button must be clicked to get to UDF screen
* ‘W2 Destination’ can be entered for distributing the W2 forms by department
 
!IEID – Employee Identity Screen User Field
*The ‘W2 Destination’, ‘MMREF Officer Code’ can be entered for an employee.
*On the MMREF1 file, the Code RS record position 341, the State of Minnesota requires reporting of the Officer Code for the employee.
*If an employee qualifies as an Officer for State of Minnesota, ‘Y’ should be entered on ‘MMREF Officer Code’ field.
*‘W2 Destination’ can be entered for distributing the W2 forms for the employee
*‘MMREF Probationary’ code is not used for State of Minnesota
 
!IDFDV – Define Form Code
*Define form code ‘HL$US-W2-20YY’ for MMREF1 format.  This code is used for Minnesota quarterly MMREF1 reporting
*For a complete list of ‘HL$US-W2-20YY’ identifiers, please refer to the W2 Process Processing and W2 Process Set up documents in this Knowledge base.

!!State File Procedures
The State of Minnesota accepts filing of quarterly information using the EFW2 format
*Record Codes required are: Code RA, RE, RW, RS, RT and RF
*In addition to the quarterly State Magnetic Media filing in the EFW2 format, employers are required to manually fill in Minnesota State Form MDES-1406 form
*The ‘Total Gross Wages’ and the Employee Count information are required to be filled in for employees who have been paid on the 12th day of each month of the quarter
*When [RPYEU] is run for quarterly reporting information, [RPYEU] produces a report at the ‘SUI Registration’ level that contains this information.  The required information should be manually entered on the State form.
*For the State of Minnesota, the EFW2 file Code RS record positions 248-259 are required to be reported by the MN State Unemployment Insurance Account Number and Employer Unit Number.   The MN Employer Unit Number is defined at the department level and therefore the MN State Unemployment Insurance Account Number and MN Employer Unit Number must be set up on IDDP UDF ‘Dept SUI ER Number’ field
*When [RPYEU] is run:
**Define the ‘Sort Level By’ field as ‘DEPT SUI ER Number’, and 
**Define the ‘Provide Sort Level Total’ as ‘Yes’.  These fields must be defined in order to obtain the department totals by MN Employer Unit Number
**The employee’s prime assignment detail record, that is effective as of the period end date, is used to retrieve the department, and the department is used to retrieve the UDF ‘DEPT SUI ER Number’ for reporting.\\Therefore, the employee is reported under the employee's prime assignment detail's department for SUI purpose.
*When an employee changes department during the quarter, the employee is only reported under the last department that they have worked, effective as of the period end date.   The employee is not reported under multiple departments since the quarterly information from the 'ToDate' headers are not kept by department.
 
!!Annual W2 Wage Reporting – EFW2 Format
[RPYEU] must be run with the following report parameters and filters defined to generate the Minnesota State file information.  \\[RPYEU] will generate the Minnesota State W2 EFW2 File Format according to the State specifications

__RPYEU Report Parameters__
|Annual Form Code|Use standard form code, such as 'HL$US-W2-YYYY'
|Period Type|Mandatory. Defines the period type.  Enter "Year" for Annual reporting and "Quarter" for quarterly reporting.
|Period End Date|Mandatory.  Defines the end date of the reporting period.  Enter in DD-MMM-YYYY format
|As of Date|This date is used to retrieve employee information such as name, address, etc.
|Combine Employment Type|Set to ‘Yes’ since Code RE records are not reported by ‘Employment Type’
|Media Format|Mandatory.  Set to State File Format \\Defines the Federal file format for SSA reporting (includes 'RW' and 'RS' records).
|Directory Name| Mandatory.  Defines the name of the government Magnetic Media file.  Must be defined or an output file will not be produced
|Media File Name|Mandatory.  Defines the media file name of the data being uploaded.  Must be defined or an output file will not be produced

__RPYEU Report Filters__
|Select State: Minnesota, USA
|Federal Regist Number: Enter the Federal Registration Number

__RPYEU Run Options__
|Provide Sort Level Totals: Optional.  When set to YES, the totals are generated by ‘DEPT SUI ER Number’

Please enter other prompts accordingly.\\  \\
 

!!State Magnetic Media Reporting – EFW2 Format
!Record Name: Code RA - Transmitter Record
[{InsertPage page='W2_EFW2_RECORD_RA'}]



!Record Name: Code RE - Employer Record
[{InsertPage page='W2_EFW2_RECORD_RE'}]


!Record Name: Code RW – Employee Wage Record
[{InsertPage page='W2_EFW2_RECORD_RW'}]




!Record Name: Code RS - State Record
[{InsertPage page='W2_EFW2_RECORD_RS'}]


!Record Name: Code RT - Total Record
[{InsertPage page='W2_EFW2_RECORD_RT'}]

!Record Name: Code RV – State Total Record (Specific to the State of Minnesota
||Column||Description||Source
|1-2|Record Identifier|Constant "RV"
|3-29|Not used by Department of Revenue|Fill with blanks
|30-36|Total RS Records|Total number of RS Records since the last RE record, regardless of State code.  Right justify and fill.
|37-72|Not used by Department of Revenue|Fill with blanks
|73-87|State Taxable Wages|Total of all RS records since the last RE record, regardless of the State code.  Right justify and fill.
|88-102|State Income Tax Withheld|Total of all RS records since the last RE record, regardless of the State code.  Right justify and fill.
|103-133| Not used by Department of Revenue|Fill with blanks
|134-512|Blank|Fill with blanks

!Record Name: Code RF - Final Record
[{InsertPage page='W2_EFW2_RECORD_RF'}]


!!Quarterly UI Wage Reporting - EFW2 Format 
[RPYEU] must be run with the following report parameters and filters selected to generate the Minnesota State quarterly file information.  \\* RPYEU will generate the Minnesota State Quarterly EFW2 File Format according to the State specifications \\ \\

__RPYEU Report Parameters__
|Annual Form Code|Use standard form code, such as 'HL$US-W2-20YY'
|Quarterly Form Code|Use the standard form code ‘HL$US-QTR-20YY.  \\Must be entered in order to generate the STATE UI wage file in the [ICESA] format
|Govt Interface Format|Mandatory.  Enter HL$US-QTR-MM20YY
|Period Type|Mandatory. Defines the period type.  Enter "Quarter" for quarterly reporting.
|Period End Date|Mandatory.  Defines the end date of the reporting period.  Enter in DD-MMM-YYYY format
|As of Date|This date is used to retrieve employee information such as name, address, etc.
|Combine Employment Type|Set to ‘Yes’ since Code RE records are not reported by ‘Employment Type’
|Media Format|Mandatory.  Set to State SUI File Format \\Defines the Federal file format for SSA reporting (includes 'RW' and 'RS' records).
|Directory Name| Mandatory.  Defines the name of the government Magnetic Media file.  Must be defined or an output file will not be produced
|Media File Name|Mandatory.  Defines the media file name of the data being uploaded.  Must be defined or an output file will not be produced

__RPYEU Report Filters__
|Select State: Minnesota, USA
|Federal Regist Number: Enter the Federal Registration Number


__RPYEU Run Options__
|Sort by Level: Must enter ‘DEPT SUI ER Number’ for Minnesota
|Provide Sort Level Totals: Optional.  When set to YES, the totals are generated by ‘DEPT SUI ER Number’

Please enter other prompts accordingly.
\\

!Record Name: Code RS - State Record
%%information NOTE: All record locations designated by “MN” are read by the Minnesota Department of Economic Security.%%
||Column||Description||Source
|1-2 MN|Record Identifier|Constant "RS"
|3-4 MN|State code|Enter the appropriate FIPS postal numeric code.  Minnesota's code is ‘27’ \\Derived from the state being reported, from [IDFDV] sequence 7000
|5-9|Blank|Fill with blanks
|10-18 MN|Social Security Number|Enter the employee’s full nine-digit SSN. \\If not known, enter ‘I’ in position 2 and fill with blanks \\If an invalid SSN is encountered, this field is entered with zeroes \\Derived from [IDFDV] Field Identifier: ‘W2-EE-SSN’
|19-33 MN|Employee First Name|Enter the employee's last name. \\Derived from [IDFDV] Field Identifier: ‘W2-EE-LAST-NAME’
|34-48 MN|Employee Middle Name or Initial|Enter the employee's middle initial, if applicable.  Leave blank if no middle initial \\Derived from [IDFDV] Field Identifier: ‘W2-EE-MIDDLE’
|49-68 MN|Employee Last Name|Enter the employee's last name. \\Derived from [IDFDV] Field Identifier: ‘W2-EE-LAST-NAME’
|69-72|Employee Suffix|Enter the employee's suffix \\Derived from [IDFDV] Field Identifier: ‘W2-EE-SUFFIX’
|73-94|Employee Location Address|Enter the employee's location address \\Derived from [IDFDV] Field Identifier: ‘W2-EE-LOCN-ADDR’
|95-116|Employee Delivery Address|Enter the employee's delivery address \\Derived from [IDFDV] Field Identifier: ‘W2-EE-DELIV-ADDR’
|117-138|Employee City|Enter the employee's city \\Derived from [IDFDV] Field Identifier: ‘W2-EE-CITY’
|139-140|Employee State Abbreviation|Enter the employee's State abbreviation \\Derived from [IDFDV] Field Identifier: ‘W2-EE-STATE’
|141-145|Employee ZIP Code|Enter the employee's zip code \\Derived from [IDFDV] Field Identifier: ‘W2-EE-ZIP’
|146-149|Employee ZIP Code Extension|Enter the employee's zip code extension\\Derived from [IDFDV] Field Identifier: ‘W2-EE-ZIP-EXT’
|150-154|Blank|Fill with blanks
|155-177|Employee Foreign State/Province|Enter the employee's Foreign State/Province, if applicable \\Derived from [IDFDV] Field Identifier: ‘W2-EE-F-STATE’
|178-192|Employee Foreign Postal Code|Enter the employee's Foreign postal code, if applicable \\Derived from [IDFDV] Field Identifier: ‘W2-EE-F-POSTAL’
|193-194|Employee Country Code|Enter the employee's Country code, if applicable \\Derived from [IDFDV] Field Identifier: ‘W2-EE-COUNTRY’
|195-196|Optional|Fill with blanks
|197-202 MN|Reporting Period|Derived from the user defined Period End Date converted to MMYYYY for the reporting quarter. \\Example: If Period End Date = ‘31-Mar-YYYY’, then reporting period is ‘03YYYY’
|203-213 MN|State Quarterly Unemployment Insurance Total (gross) Wages|Enter the total State quarterly UI gross wages. \\Derived from [IDFDV] Field Identifier: ‘W2-ST-WAGE-HOME’ and ‘W2-ST-WAGE-WORK’\\ NOTE: The [IDFDV] Identifier ‘W2-SUI-WAGE-ER’ is not used to report this field because the value of Identifier ‘W2-SUI-WAGE-ER’ may already been capped by Symmetry during the US Tax calculation, [UPCALC].  For employees who exceed the maximum wage base, this Identifier will contain no SUI Insurance wages.  [RPYEU] will then use the State Taxable wages from the ‘W2-ST-WAGE-HOME’ and ‘W2-ST-WAGE-WORK’ Identifiers, that are related to the employee's Home GEO and Work GEO code, to report SUI Total Wages
|214-224|State Quarterly Unemployment Insurance Taxable Wages|Enter the total State quarterly UI taxable wages.  \\Derived from State Quarterly Unemployment Insurance Total Wages and the SUI Maximum wage base as defined by the State government.\\  \\Please see example below for calculation details.
|225-226|Number of Weeks Worked|Total number of weeks worked.  \\From the system derived number of Weeks Worked for the Reporting State\\  \\The system reads all Pay Headers with the pay category defined as ‘Regular Pay’, that are not reversed, with a Pay Issue Date that falls within the user defined Quarter begin and end dates.\\ If the Pay Header’s Work State or Home State is the same as the reporting State, then the Pay Header's Tax Weeks are accumulated into this field.
|227-234|Date First Employed|From the system derived latest Employment Hired Date, in MMDDYYYY format
|235-242|Date of Separation|Enter the employee's separation date, in MMDDYYYY format \\If this employee’s Probationary Code = ‘01’, (from IEID User Field ‘MMREF PROBATIONARY’), then this field contains the employee’s termination date.  Otherwise fill with zeros
|243-247|Blank|Fill with blanks
|248-259 MN|MN State Unemployment Insurance Account Number and MN Employer Unit Number|This field is derived from [IDDP], UDF ‘SUI ER Number’ field according to the employee’s Prime Assignment Detail Department, that is effective as of the period end date\\  *If ‘DEPT SUI ER Number’ = 7977999-004, then ‘-’ will be replaced with zeroes\\  *If ‘DEPT SUI ER Number’ is not defined for a department, then the [IDGV] SUI ER Number is used
|260-260 MN|Month-1 Employment|Enter ‘1’ if the employee was covered by UI, and worked or received pay, for the pay period including the 12th day of the first reporting month.  Otherwise enter ‘0’
|261-261 MN|Month-2 Employment|Enter ‘1’ if the employee was covered by UI, and worked or received pay, for the pay period including the 12th day of the second reporting month. Otherwise enter ‘0’
|262-262 MN|Month-3 Employment|Enter ‘1’ if the employee was covered by UI, and worked or received pay, for the pay period including the 12th day of the third reporting month. Otherwise enter ‘0’
|263-273|Blank|Fill with blanks
|274-275|State code|Enter the appropriate FIPS postal numeric code. Minnesota's code is "27" \\Derived from the State being reported 
|276-286|State Taxable Wages|Enter the total State taxable wages \\Derived from [IDFDV] Field Identifier: ‘W2-STATE-WAGE-HOME’ and ‘W2-STATE-WAGE-WORK’
|287-297|State Income Tax Withheld|Enter the total State income tax withheld \\Derived from [IDFDV] Field Identifier: ‘W2-STATE-TAX-HOME’ and ‘W2-STATE-TAX-WORK’
|298-337|Blank|Fill with blanks
|338-340 MN|Hours Worked|Enter the total hours worked \\Derived from [IDFDV] Field Identifier: ‘W2-SUI-HRS-WRK’
|341 MN|Officer Code|Enter the appropriate Officer Code \\Derived from [IEID] UDF ‘MMREF Officer Code’ if defined. Otherwise, fill with blank
|342-511|Blank|Fill with blanks
|512-512 MN|Constant ‘X’|Recommended for Minnesota State process only

!!Calculate State SUI Taxable Wages, Excess Wages
All wages paid to an employee up to the SUI Wage Base Amount are taxable for SUI purposes. \\
When an employee’s State Taxable earnings exceed the SUI Wage Base for a calendar year, then the exceeded portion of the earnings are considered as SUI Excess Wages and are not taxable for SUI purposes.

Some states require to report the following 3 items:
#State Quarterly Unemployment Insurance Total Wages
#*This is the State Gross wages paid to an employee for the quarter, less 125 Plan contributions and/or 401 exemptions
#*The Total Wages are retrieved from the [IDFDV] ‘W2-ST-WAGE-HOME’ and ‘W2-ST-WAGE-WORK’ Identifiers
#*NOTE: the [IDFDV] ‘W2-SUI-WAGE-ER’ Identifier is not used to report this field because the value of the ‘W2-SUI-WAGE-ER’ Identifier may have already been capped by Symmetry during the US Tax calculation process, [UPCALC].  Therefore, for employees who exceed the maximum wage base, the ‘W2-SUI-WAGE-ER’ field will contain no SUI Insurance wages.  \\*[RPYEU] will use the State Taxable wages from Identifier ‘W2-ST-WAGE-HOME’ and ‘W2-ST-WAGE-WORK’ that are related to the employee's Home GEO and Work GEO codes to derive the SUI Total Wages
#SUI Excess Wages
#*This is the SUI Total wages paid to an employee in the reporting quarter that are in excess of the SUI Wage Base \\Example: Employee SUI Total Wages for the quarter: $8500\\Maximum SUI Wage Base: $7000 \\Therefore, SUI Excess Wages: $1500
#State Quarterly Unemployment Insurance Taxable Wages
#*This is the SUI Total wages that does not exceed the SUI Wage Base Amount for the calendar year \\Example: Employee SUI Total Wages for the quarter: $8500 \\Maximum SUI Wage Base: $7000 \\SUI Excess Wages: $1500 \\ SUI Excess Wages = Employee SUI Total Wages – SUI Excess Wages \\SUI Excess Wages = $8500 – $1500 = $7000
 
!!Example – SUI Taxable Wages, SUI Excess Wages Calculation
||Quarter 1||Person Code: 1000||Person Code: 1001||Total this Quarter for all Employees		
|Total Wages for the Quarter|$9000|$3000|$12000
|SUI Excess of Wage Base\\(Year 2000 Wage Base $7000)|YTD Wages – Wage Base: \\$9000 – $7000, up to max of current quarter Wages\\= $2000|YTD Wages – Wage Base: $3000 – $7000, up to max of current quarter Wages\\= $0|$2000
|SUI Taxable Wages|Total Wages – Excess Wage: \\$9000 - $2000\\= $7000|Total Wages – Excess Wage\\= $3000 - $0\\= $3000	|$10000

||Quarter 2||Person Code: 1000||Person Code: 1001||Total this Quarter for all Employees			
|Total Wages for the Quarter|$9000|$3000|$12000
|SUI Excess of Wage Base\\(Year 2000 Wage Base $7000)|YTD Wages – Wage Base: \\$18000 – $7000, up to max of current quarter Wages\\= $9000|YTD Wages – Wage Base: \\$6000 – $7000, up to max of current quarter wages\\$0|$9000
|SUI Taxable Wages|Total Wages – Excess Wage: \\$9000 - $9000\\= $0|Total Wages – Excess Wage\\= $3000 - $0\\= $3000|$3000

||Quarter 3||Person Code: 1000||Person Code: 1001||Total this Quarter for all Employees			
|Total Wages for the Quarter|$9000|$3000|$12000
|SUI Excess of Wage Base \\(Year 2000 Wage Base $7000)|YTD Wages – Wage Base: \\$27000 – $7000, up to max of current quarter Wages\\= $9000|YTD Wages – Wage Base:\\$9000 – $7000, up to max of current quarter Wages\\= $2000|$11000
|SUI Taxable Wages|Total Wages – Excess Wage: \\$9000 - $9000\\= $0|Total Wages – Excess Wage\\= $3000 - $2000\= $1000|$1000

||Quarter 4||Person Code: 1000||Person Code: 1001||Total this Quarter for all Employees		
|Total Wages for the Quarter|$9000|$3000|$12000
|SUI Excess of Wage Base\\(Year 2000 Wage Base $7000)|YTD Wages – Wage Base: \\$36000 – $7000 up to max of current quarter Wages\\= $9000|YTD Wages – Wage Base: \\$12000 – $7000, up to max of current quarter Wages\\= $3000|$12000
|SUI Taxable Wages|Total Wages – Excess Wage: \\$9000 - $9000\\= $0|Total Wages – Excess Wage\\= $3000 - $3000\\= $0|$0
 
!!Month1, Month2, Month3 Employment Processing
The State of Minnesota requires the reporting of the Month1, Month2, Month3 Employment for the employer.

Each Month requires the reporting of the total number of employees, full time and part time, who worked during or received pay subject to UI wages, for the payroll period that includes the 12th day of the first month of the reporting period.

The following logic is used to retrieve each Month’s Employment information:
*From the user-specified Quarter Ending date, determine the First Month Date that includes the 12th of the month\\ Example: Quarter Ending Date Mar-31-YYYY, then the First Month Date is Jan-12-YYYY
*Determine the Payroll Period that the First Month Date ‘Jan-12-YYYY’ falls within the reporting period Start and End dates\\ Example: For Jan-12-YYYY, falls into Period YYYY02, with Period Start date Dec-30-YYYY and End date Jan-13-YYYY
*For each employee, read the Pay Headers for the First Month Period that have the Pay Stage defined as ‘70’ or ‘80’
*With each Pay Header that qualifies, retrieve the amount according to [IDFDV] ‘W2-ST-WAGE-HOME’ and ‘W2-ST-WAGE-WORK’ values to determine if the employee has wages that are subject to UI
*As long as an employee has one pay header that qualifies and has UI wages, the employee is counted for that Month of Employment
*The above logic is repeated for the Second Month and Third Month of the reporting quarter

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![Notes|Edit:Internal.Tax Reporting - MN]
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