Important: PMFL employer premiums begins January 1st, 2026
In 2026, Minnesota employers begin submitting quarterly premium payments for Minnesota Paid Family Medical Leave (PFML). Reporting began October 31, 2024, using the employer's quarterly unemployment tax report (MNDEED1). Employers who are SUTA exempt must register with Minnesota for Unemployment Insurance for a Paid Leave Only account.
About the Minnesota Paid Family and Medical Leave program
Minnesota's Paid Leave program provides job-protected paid leave for workers who need time away from work to attend to matters relating to the health and safety of themselves or others in their household.
This includes:
- When serious health condition prevents you from working
- When a significant personal safety issue prevents you from working
- To care for a family member with a serious health condition
- To care for a family member facing a significant personal safety issue
- To bond with a new child
- To support the household when a family member called to active duty
Effective January 1, 2026
Paid Leave Minnesota is funded by employer-paid premiums. Rates are based on quarterly wage reports submitted for Unemployment Insurance. Employers may deduct up to 50% of the cost of the Paid Leave premium from employee wages. Additionally, small employers may have their contribution reduced.
What you need to know
- The Employer premium rate is 0.88%
- Employers may deduct an employee portion of up to 50% of Paid Leave premiums from employee paychecks
- Employers may also choose to "pick up" any or all of the employee portion
- Employer pick-up amounts are considered subject to taxation by the IRS
Employers may start deducting Paid Leave premiums from employee paychecks beginning January 1, 2026, when benefits become available. The first premium payments for Paid Leave are due on April 30, 2026. The first premiums will be based on wage details reported between January 1, 2026, and March 31, 2026.
More information at Paid Leave Minnesota→
Offering a Paid Leave Equivalent plan
Employers who want to offer a PLE plan must request an Equivalent Plan Substitution by following the steps found in these instructions provided by Minnesota Paid Leave. Click the link below to get started.
Where to enter your Employee Contribution
When you enter your SUI employer account number in Payroll Taxes, this account number is used for both the state unemployment insurance and paid leave
Go to Company, then Payroll Taxes.
- Go to the Payroll tab, click Set up, then Payroll Taxes.
If you haven't already done so, you'll need to enter the account number into the field labeled “UI Employer Account Number”. You receive this number when you register with Unemployment Insurance Minnesota.
More about entering your SUI information→
SUTA exempt? Here's what you need to do
Register for a Paid Leave Only account
- Employers who haven't registered with the state's UI program due to a SUTA exemption will need to register for a Paid Leave Only account with Unemployment Insurance Minnesota online
- The state has provided this video walkthrough to help you register for a Paid Leave Only UI Account Number
- You'll need to enter your Paid Leave Only UI Account Number in OnPay (↓see instructions below↓)
If you're unsure about whether you need to register for a Paid Leave Only account, contact the Department of Employment and Economic Development at 651-296-6141 (press 4 to speak to a representative). They’re available Monday through Friday, 8 AM to 4:30 PM.
Where to enter your Paid Leave Only UI Account Number
Enter the account number you received when you registered for your Paid Leave Only account with Unemployment Insurance Minnesota online into the field labeled “Paid Leave Only ID” in the MInnesota Payroll Taxes page.
Without this number, OnPay is unable to submit quarterly wage reports on your behalf.
Exempt from PFML?
Most employers are not exempt from Minnesota Paid Leave. Independent contractors, self-employed individuals, and Tribal Nations are not covered by the program, but they can opt in. Only check this box if you’ve been directly informed by the Minnesota Department of Employment and Economic Development that your business qualifies as "exempt".
Small employer?
All employers, regardless of size, are required to participate in Paid Leave unless they are specifically exempt from the law. There is no exclusion in the law for small employers.
Small employers with 30 or fewer employees and an average employee wage under 150% of the state average will pay a reduced premium and can apply for small business assistance grants. Only check this box if you’ve been directly informed by the Minnesota Department of Employment and Economic Development that your business qualifies as a Small Employer.
Employee contribution
Click Update under "Employee Contribution" to enter the percentage (up to 50%) of your rate that should be covered by employee deductions. Any amount below 50% is considered an "employer pick-up" by the IRS, and will be included in employee subject wages.
Employer pick-up
An "employer pick-up" is when an employer pays the employee portion of required paid leave insurance contributions. Because these contributions would normally be deducted from employee pay, an employer pick-up is considered "additional compensation" by the IRS.
As of January 1st, 2026, when employers "pick up" their employees' premium payment for PFML plans, these pick-up contributions are considered taxable income, and are included in subject wage amounts.
Private plan (Paid Leave Equivalent)
An approved Paid Leave Equivalent (PLE) plan provides employees with paid leave benefits that are equal to or greater than those provided through the state’s Paid Family & Medical Leave program.
Equivalent plans may be either self-funded, or a fully-funded
- A self-insured plan - Requires a surety bond be paid to the state
- An insurance carrier plan - Is purchased from a state-approved insurance company
More about offering a Paid Leave Equivalent plan in Minnesota→
TPA + POA needed for Paid Leave Only
Once you've registered for your Paid Leave Only UI account, you'll need to authorize OnPay to act on your behalf with the Department of Employment and Economic Development, by granting us TPA access.
Here's how→
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