Withholding of federal income tax from state employee pay prohibition

SF 3931 prohibits Minnesota state agencies from withholding federal income tax from state employees' paychecks. The bill requires that when processing state employee pay, the commissioner of management and budget or agency heads must not withhold or remit federal income tax, replacing the previous requirement under Minnesota Statutes 16A.13. This repeal of the existing law (16A.13) shifts the responsibility for federal tax collection from the state to employees themselves. As a result, state employees would receive their full pay without federal income tax deductions, and they would be responsible for filing and paying their own federal income tax.