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What is it?
Paid Leave is a new program launching for Minnesotans in 2026. It provides paid time off when a serious health condition prevents your employee from working, when your employee needs time to care for a family member or a new child, for certain military-related events or for certain personal safety issues.
https://mn.gov/deed/paidleave/employers/
Premiums:
Deductions will begin January 1st, 2026. The first premium payments will be due on April 30th, 2026 and if you are with MHA payroll this will be completed on your behalf with the quarterly filings.
The premium rate for 2026 will be 0.88 percent based off gross wage per employee. The premium rate will change every year after that.
The premiums are shared between employees and employers. Employers must pay at least 50 percent of the total premium, though they may choose to pay up to 100 percent of the premium (note: this additional contribution will be reported as taxable wages on the employee’s W-2, and the employee and employer are subject to additional FICA taxes along with federal and state taxes for the employee). Employee deductions are capped at 50% of the premium rate.
Read the full article here
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