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. An approved equivalent plan can cover both Family and Medical Leave, or only one leave type. Employers who offer an equivalent plan for only one type of leave must pay premiums and participate in Minnesota Paid Leave to provide coverage for the other type.
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
Note: Having an internal paid leave policy, on its own, does not meet these requirements.
What conditions must be met for a PLE plan?
Equivalent plans for Family or Medical Leave must meet the following conditions:
- All employees covered under the state plan must be covered under the equivalent plan.
- Eligibility requirements cannot be more strict than the state plan.
- Weekly payments must be at least equal to the state plan, and kept separate from other benefits.
- The total amount of leave available cannot be less than the amount provided by the state plan.
- Job protections must be equal to those provided by the state plan.
- Costs to employees cannot exceed what their premiums would be under the state plan.
- For Medical Leave, the equivalent plan must cover any serious health condition or medical care related to pregnancy, that would otherwise be covered under the state plan.
- For Family Leave, the equivalent plan must cover any care for a family member with a serious health condition, bonding with a child, a family member called to active duty military service, or any safety leave event that would be covered under the state plan.
- The equivalent plan must offer intermittent leave or reduced schedules consistent with the state plan.
- The equivalent plan cannot impose any additional conditions or restrictions on the use of leave beyond those in the state plan.
- Coverage must continue for 26 weeks after employee separation, or until the individual is hired by a new employer.
- If a leave application is filed by a former employee, the equivalent plan must pay benefits for the full time of leave. Equivalent plans may not cut off eligibility for a former employee during an approved leave.
How PLE quarterly reporting and payments are submitted
Employers who've been approved to provide a Paid Leave Equivalent (PLE) plan to their employees will still have the same registration and reporting requirements as those paying into the state plan. The key difference is that all payments are handled by you.
For self-funded plans the state requires a surety bond. If you have a fully-funded plan, you will make payments to your PFML insurance provider.
Based on the Employer and Employee Rates you enter in OnPay, we'll calculate employer and employee contributions with each pay run, leaving employee contribution amounts (if any) in your bank account when payroll funds are drafted.
Employer and employee contribution totals are included in your quarterly wage reports, which OnPay files with the state.
Request an Equivalent Plan Substitution
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.
Setting up a Paid Leave Equivalent Plan in OnPay
Go to Payroll Taxes, and select Minnesota.
Scroll down to "Minesots State Paid Family and Medical Insurance Setup" and enter your MInnesots PFML ID (ex: 12345678) in the specified field.
Scroll down to "Paid Leave Equivalent Plans", and check the box to set employer and employee rates.
Two new fields will appear, where you can enter your employer and employee rates. You're not required to enter an employee rate, but if you do, it cannot be higher than 0.5%.
How can this rate be split?
What rates you can enter here depend on your employee count. Employee contributions are limited, but employers can contribute as much as they want, provided they meet the minimum rate.
Employers with 30 or more employees
- The tax rate of .88% can be employer-paid, or split between employer-paid and employee withholdings
- The maximum Employee Rate is 0.44% (50% of employer rate), but can be lower
- Employers may choose to contribute more than the minimum rate
Employers with fewer than 30 employees
- The tax rate of 0.22% can be employer-paid, split between employer-paid and employee withholdings, or fully paid by employee withholdings
- The maximum Employee Rate is 0.5%, but can be lower
- The minimum Employer Rate is the remainder of 0.5% minus the Employee Rate (if any)
- Employers may choose to contribute more than the minimum rate