You may need to withhold Minnesota tax on third-party sick pay employees receive for absences due to injury, sickness, or disability. This fact sheet goes over Minnesota tax credits, deductions, and programs that individuals with disabilities may qualify for.Short term disability insurance pays you a portion of your salary if you cannot work because of a disabling illness, injury, or pregnancy. To complete an enterable form on a computer: Download the Word document to your computer. Open your saved file and select the View tab in the upper left corner. Employee benefit plans offer favorable treatment of contributions for federal and state income tax purposes. You must withhold Wisconsin income taxes on wages of Minnesota residents working in Wisconsin. You should ask these employees to complete a Form WT-4. Every employer who maintains an office or transacts business in Iowa and who is required to withhold federal income tax on any compensation paid to employees. TRA administers federal and Minnesota state tax withholding for your retirement benefit.