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 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 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#

Record Name: Code RE - Employer Record#

Record Name: Code RW – Employee Wage Record#

Record Name: Code RS - State Record#

Record Name: Code RT - Total Record#

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#

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#

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:

1. 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
2. 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
3. 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#

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