This Just In: MN 2% Contractor Withholding Repealed

The Minnesota Department of Revenue announced today that, effective June 30, 2012, businesses paying individuals in the construction trades will no longer be required to withhold 2% of the payment and remit it as income tax withholding to the State.

This is great news for all of you in the real estate and construction trades.  It makes conducting business with your contractors after that date a much simpler process.  Payments made prior to June 30 will still be under the old rules, so be sure to withhold as needed for payments made through this date.

Questions?  Give us a call and we’ll be happy to discuss the finer points with you.