Frequently asked questions for employers
These are the questions we’re hearing most from employers. Do you have a question that you don’t see answered here? Please reach out to us.
These are the questions we’re hearing most from employers. Do you have a question that you don’t see answered here? Please reach out to us.
The first wage detail reports will be due on October 31, 2024, and will be based on wages paid between July 1, 2024, and September 30, 2024.
Payroll deductions can start on January 1, 2026.
The first premiums will need to be submitted to the State of Minnesota's Department of Employment and Economic Development by April 30, 2026. Premiums will apply for wages earned between January 1, 2026, and March 31, 2026.
The Paid Leave program covers most employers in the state.
The Paid Leave program covers most Minnesota employers with one or more employees, with the following exceptions: employees of the federal government and self-employed individuals who choose to provide their own coverage for themselves.
Yes. All employers, regardless of size, will be required to participate in the program unless they are exempt from the law.
Small businesses with 30 or fewer employees will be eligible for reduced premiums and may be eligible for small business assistance grants to hire temporary workers or to increase an existing worker's wages.
The Paid Leave program is a new program distinct from the Unemployment Insurance program. The Paid Leave law does not exclude the same employers that are excluded for the purposes of Unemployment Insurance. For example, religious organizations, non-profits, and agricultural employers are all required to participate in the Paid Leave program.
Municipalities and local government entities are required to participate in the Paid Leave program.
Yes, part-time employees are covered under the program.
The Paid Leave program uses the same wage definition as the Unemployment Insurance program. See the specifics of what counts as wages under Minn. Stat. 268B.01.
Yes, premiums are capped at the Old-Age, Survivors, and Disability Insurance (OASDI) limit. This is the same wage base used by the Social Security program.
No, the rate is set for all employers annually and is not adjusted based on employees’ utilization of the program.
Every quarter, employers across the state are required to submit a report to the state that details wages paid to their employees. This report is important because it provides the state with administrative data that helps support programs, complete labor market analyses, and comply with reporting requirements.
Paid Leave needs this information to support administration of the program in two important ways: (1) when premiums are due, they will be based on a percentage of wages paid to employees and (2) when benefits start, we’ll use wage detail to establish eligibility for the program and determine the benefit amount.
The Paid Leave division will leverage the existing Unemployment Insurance (UI) UI Online system to collect wage detail reports for the program. If an employer is covered by the UI program, they will be able to submit a single wage detail file for both programs when they pay their UI taxes. The data used in the UI filing will be used to report wages directly to the Paid Leave program.
If an employer is not covered by the Unemployment Insurance program, they will need to set up a “Paid Leave Only” account. This account will be available in the spring 2024.
Nothing! Your UI employer account will be automatically converted into a joint UI/Paid Leave account to allow you to submit your wage detail report using the same process you use today.
During summer 2024, you will need to register for a Paid Leave Only account through the UI Online system. We will post instructions on our website as soon as Paid Leave Only accounts are available.
The first wage detail reports will be due on October 31, 2024, and will be based on wages paid between July 1, 2024, and September 30, 2024.
No, premiums do not need to be paid until after the Paid Leave program launches in 2026. The initial wage detail reports are for informational purposes only.
The first premiums for Paid Leave will not be due until April 30, 2026, and those initial premiums will only apply to wages earned between January 1, 2026, and March 31, 2026.
Employers will need to provide the first and last name, social security number, wages paid and hours worked for each employee. This is identical to information provided to the Unemployment Insurance division.
There is more information on wage detail reporting on the Updated pages to submit and adjust wage detail reports on Unemployment Insurance website.
Paid Leave benefit payments will be considered taxable income under state law. The IRS has yet to provide guidance on the federal tax treatment of Paid Leave benefits.
Yes. Benefit payments will be paid directly to employees under the program.
Employers will be able to apply for a private plan exemption if they offer a private plan with at least the same rights, protections, and benefits provided to employees under the Paid Leave law. To be considered for an exemption, the employer will need to submit documentation showing proof of coverage and that the plan fully meets the requirements laid out under the Paid leave law.
Employers who are otherwise required to participate in the Paid Leave program may seek an exemption from the Paid Leave law by applying for a private plan exemption. To be considered for a private plan exemption, the employer will need to submit documentation showing proof of coverage and that the plan fully meets the requirements laid out under the Paid leave law.
The Paid Leave program is working with the Minnesota Department of Commerce on a process to allow carriers to sell private plans that would qualify for an exemption. No plans have been approved for sale in Minnesota at this time.
The Family and Medical Leave Act (FMLA) is a federal program administered by the US Department of Labor’s Wage and Hour Division. FMLA entitles eligible employees to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage. The leaves may be taken concurrently, but the requirements for FMLA and Paid Leave are different.
Paid Leave is a state program administered by the Minnesota Department of Employment and Economic Development. Paid Leave requires most employers in Minnesota to offer job protected leave for qualifying events to eligible employees. The Paid Leave program also offers partial wage replacement for employees during their absence if they have earned 5.3% of the state’s average annual wage in the previous 52 weeks.
Employers can require that leave taken under the Paid Leave program run concurrently with leave taken for the same purpose under the federal Family and Medical Leave Act (FMLA).
No, Paid Leave does not replace the Minnesota Parental Leave Act (MPLA). However, employers may require that leave taken under the Paid Leave program run concurrently with leave taken for the same purpose under the MPLA.
No. These are two different programs:
The Earned Sick and Safe Time program is administered by the Department of Labor and Industry and began on January 1, 2024. Sick and safe time is paid time off employers must provide to employees in Minnesota that can be used for certain reasons, including when an employee is sick, to care for a sick family member or to seek assistance if an employee or their family member has experienced domestic abuse, sexual assault, or stalking..
The Minnesota Paid Leave program begins January 1, 2026, and is overseen by the Department of Employment and Economic Development. Under state administered Paid Leave, the state of Minnesota, not the employer, provides partial wage replacement and job protection to Minnesota workers who need time away from work to take care of their own serious health condition; care for a family member’s serious health condition; bond with a new child; support a family member who has been called to active military duty; or seek help for themselves or a family member due to domestic violence, sexual assault or stalking.
Here is a more detailed breakdown between the two programs.
Yes. Employers will be able to designate certain paid benefits like Paid Time Off, vacation and sick time as “supplemental benefits.” If an employer designates payments as supplemental benefits, the employee can choose to receive up to full salary continuation during their leave. The decision to offer supplemental benefits is completely up to the employer.
Self-employed individuals and independent contractors are not covered by Paid Leave, but can choose to opt in.