Page 6 - PMFL Employer Toolkit

How does Paid Leave define wages?
Paid Leave uses the same wage definition as the Unemployment Insurance (UI) program. To make things easier
for Minnesota employers, the wage details reported for Paid Leave will be the same wage details already reported for Unemployment Insurance (UI). When reporting wage details for employees not covered by UI, wages include all compensation for employment, including commission, bonuses, benefits payments, tips and gratuities, and most goods and services provided as compensation.
Do employers need to pay premiums for Paid Leave when submitting wage detail reports?
No, the first premiums are not due until April 30, 2026, after the program launches, based on wages paid between January 1, 2026 and March 31, 2026.
When is the first quarterly wage detail report due for Paid Leave?
The first reports are due on October 31, 2024, based on wages paid between July 1, 2024, and September 30, 2024.
What information will employers need to include on a wage detail report?
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 for Unemployment Insurance wage detail reports. More information on data formats and submission methods for wage detail reporting can be found on the Unemployment Insurance Minnesota website.(https://www.uimn.org/employers/index.jsp)
Premium and Payroll Deductions
When will premium collection and payment begin?
Paid Leave is paid for by premiums on employee wages, split between the employer and employees. Employers can begin to deduct the employee share of the premium on January 1, 2026, when benefits become available. Employers will pay the first premiums to the State of Minnesota’s Department of Employment and Economic Development by April 30, 2026. First premiums will be based on wages paid from January 1, 2026 to March 31, 2026.
What is the premium rate?
When Paid Leave begins for Minnesotans in 2026, the premium rate will be 0.88 percent. The total Paid Leave premium rate includes both a Family Leave and a Medical Leave premium that can be split between employer and employee contributions. The premium rate will be set each year, subject to a maximum set in state law, based on how the program is running and best budgeting practices to keep the funds at a healthy level. Learn more about Paid Leave premiums and estimate payments. (https://mn.gov/deed/paidleave/employers/premiums)
How are premiums split between employer and employee?
Starting in January 2026, employers will contribute a minimum of 50 percent of the total premium, though they may choose to pay up to 100 percent of the premium. Employers will be able to deduct the remainder from employee pay, up to a maximum 50 percent of the premium.
FrequentlyAskedQuestions (continued)
How will premiums work for people who earn minimum wage?
Employers must pay at least half of the premium for each employee. Premium deductions cannot cause an employee to make less than the required minimum wage under applicable law. This may require employers to cover more than half of the premium.
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