Section 2 — Exemption From Minnesota Withholding. All nonresident alien employees must fill out two W-4 forms at the time of hire, one for Federal withholding and one for State withholding.All employees must complete the W-4MN unless they have a federal W-4 record from prior to 2020. When does an employee complete Form W-4MN? Section 2 — Exemption from Minnesota withholding. If you claim exempt from Minnesota withholding, complete only Section 2 of Form W-4MN and sign and date the form to validate it. To claim exemption from Minnesota tax withholding, you must file Form MWR. You can complete the MWR form in Employee Self Service. Exempt W-4​​ If you claim exemption from withholding when you file your W-4, be aware that your exempt status expires annually. Allowances are no longer used for the redesigned Form W-4.