Prohibits withholding of federal income tax from state employee pay in Minnesota.

The bill amends Minnesota Statutes to prohibit the withholding of federal income tax from state employee pay. It mandates that the commissioner of management and budget, or the head of an agency, must not withhold or remit federal income tax from state employee payroll. The commissioner may act as an agent for the United States in collecting federal tax from employees. The bill repeals Minnesota Statutes 2024, section 16A.13, and appropriates necessary funds to fulfill federal obligations.

Prohibits withholding of federal income tax from state employee pay in Minnesota.

The bill amends Minnesota Statutes to prohibit the withholding of federal income tax from state employee pay. It mandates that the commissioner of management and budget, or the head of an agency, must not withhold or remit federal income tax from state employee payroll. The commissioner may act as an agent for the United States in collecting federal tax from employees. The bill repeals Minnesota Statutes 2024, section 16A.13, and appropriates necessary funds to fulfill federal obligations.