Status
State backup withholdingRequiredPrimary source (statute, regulation or agency publication saved in full)
Non-wage payments to nonresidentsRequiredPrimary source (statute, regulation or agency publication saved in full)
Federal backup withholding under IRC 3406 (24 percent on a missing or mismatched TIN) applies in Minnesota exactly as everywhere else; this page covers only what the state adds. The 50-state tables put Minnesota next to its neighbours, and the Minnesota 1099 filing page covers whether the state wants its own copy of the 1099.
State backup withholding
Trigger
Minn. Stat. 290.92 subd. 26: on a reportable payment for personal services, if (1) the payee fails to furnish an SSN/TIN, (2) the payee is subject to federal backup withholding under IRC 3406, or (3) the Commissioner notifies the payor that the number furnished is incorrect. Limited to payments for personal services (work performed by a non-employee); interest, dividends and other reportable payments are not covered.
Rate
Highest Minnesota individual income tax rate, currently 9.85% of the payment (DOR: “withhold tax equal to 9.85% of the personal service payments”)
Statute
Minn. Stat. 290.92, subd. 26 (Extension of withholding to certain payments where identifying number not furnished or inaccurate)
Withholding return and forms
Reported and paid with regular Minnesota withholding tax (e-Services); withholding treated as if wages;
Form 1099-NEC/MISC to payee showing Minnesota withholding
Deposit schedule
Same semiweekly or monthly deposit schedule as wage withholding
Annual reconciliation
Annual withholding return due January 31 with W-2/1099 information (more than 10 forms must be e-filed)
Payee statement
Federal Form 1099 with Minnesota withholding entered, furnished by January 31
Exemptions
Payments other than for personal services; amounts already subject to withholding under 290.92 (for example wages); federal 3406 rules govern when withholding is required and definitions
Withholding on non-wage payments to nonresidents
Applies to
Nonresident entertainers and entertainment entities (musicians, singers, dancers, comedians, actors, athletes, public speakers; independent contractors, partnerships and corporations including S corporations paid for entertainment by nonresident entertainers). Also: compensation for personal services paid to a corporation substantially all of whose shareholders are the performing entertainers/athletes is deemed wages (290.92 subd. 4a(2)) (loan-out treatment).
Threshold
No withholding if less than $600 paid to a nonresident entertainer or entertainment entity, or less than $2,000 to a nonresident public speaker (or only expense reimbursement)
Rate
2% of gross compensation for performances in Minnesota (Nonresident Entertainer Tax; replaces regular income tax on that income)
Statute
Minn. Stat. 290.9201 (Tax on nonresident entertainers), subd. 2, 7, 8, 11
Withholding return
Form ETD (Promoter's Deposit Form) by end of month following the performance; Form ETA (Promoter's Annual Reconciliation) by January 31 with copies of Forms 1099-NEC issued
Exemption certificate or waiver
Form MWR (Reciprocity Exemption/Affidavit of Residency) for Michigan and North Dakota residents; federal
Form W-9 from the entertainer
Payee statement
Federal Form 1099-NEC; entertainer files Form ETR (Nonresident Entertainer Tax Return) by April 15
Due dates
ETD by end of month following the performance; ETA by January 31; ETR (payee) by April 15; do not combine with employee withholding
Exceptions
Under $600 (entertainers) or $2,000 (public speakers); Michigan/North Dakota residents with Form MWR; Minnesota residents
Pass-through entity withholding (out of scope)
Minnesota requires pass-through entities to withhold for nonresident partners/shareholders (290.92 subd. 4b, 4c). Entity-level withholding on distributions to nonresident owners is a duty of the entity, not of a payer, and is not covered on this page.
From the source
“withhold tax equal to 9.85% of the personal service payments to that worker”
Minnesota Department of Revenue, Pay Backup Withholding (updated December 26, 2025), read November 1, 2026
“must be withheld at a rate of two percent of all compensation paid to the entertainment entity”
Minn. Stat. 290.9201, read November 1, 2026
Sources
Each source below was read and saved on November 1, 2026; the page is built from the saved text. Statutes are cited to the section; department pages and publications to their title and, where shown, revision date.