Changes to Tax Withholding

Changes to Tax Withholding

ATTENTION CURRENT BENEFIT RECIPIENTS: There is no action needed by you – your current tax withholding selections were converted to the new requirements.

Tax withholding selections are changing for both monthly benefits (retirement, disability and survivor) and refunds. We will discontinue having tax withholding sections in our applications and stop using the Tax Withholding Certificate form. Due to the new tax requirements, we will use the federal and MN state tax forms for all tax withholding elections and changes. These new tax selections were also added to myPERA for current benefit recipients, making tax changes easy and convenient to submit online.

WHAT ARE THE NEW TAX FORMS?

>>W-4MNP – Minnesota State tax form for both monthly payments and refunds

>>W-4P – IRS Federal tax form for monthly payments

>>W-4R – IRS Federal tax form for refunds

CURRENT BENEFIT RECIPIENTS

There is no action needed by you, unless you would like to change your current tax withholding. Your tax withholding was converted to the new requirements, matching the withholding amount of your previous selection. New 2023 tax tables, however, may change your benefit amount. You can see your new 2023 benefit amount in myPERA as early as December 21.

I NEED TO CHANGE MY TAX WITHHOLDING – WHAT DO I DO?

There are two options to update your current tax withholding:

>>Update your selections in myPERA, or

>>Complete the applicable paper tax form and send it to PERA.

Please note that PERA counselors are not tax advisors. If you have questions on how to complete the new tax forms, please contact your tax professional.

APPLYING AFTER JANUARY 1, 2023

Are you in the process of applying for benefits or a refund? Beginning January 1, 2023, we will require the IRS federal (W-4P or W-4R) and MN state tax forms (W-4MNP). If we receive an application or Tax Withholding Certificate after January 1, with the old selections, we will automatically process your request with the new default tax selection. You will receive a notice and can change your tax selections in myPERA after payments begin, or you can complete the paper tax form and send it to PERA.

WHERE CAN I FIND THE NEW TAX FORMS?

The forms can be found under Resources, on our Forms and Publications web page. We also have the tax forms in the Applying for Refund and Applying for Retirement pages for easy access.