Page 7 - PMFL Employer Toolkit

Is there a maximum contribution for an employee’s?
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.
Will an employer’s premium rate increase if employees use the program?
No, the rate is set for all employers annually and is not adjusted based on employees’ utilization of the program.
Do small employers pay less?
Small employers pay a reduced premium rate under Paid Leave if they employ 30 or fewer people and the average employee wage is less than 150% of the statewide average weekly wage. Learn more about Paid Leave premiums and estimate payments. (https://mn.gov/deed/paidleave/employers/premiums)
Eligibility and coverage
Which employers are required to participate?
Paid Leave covers most employers in the state.
Are any employers except from the law?
Paid Leave covers most Minnesota employers with one or more employees, with exceptions for employees of tribal nations or the federal government and self-employed individuals who choose to provide their own coverage for themselves.
Are self-employed people and independent contractors covered by Paid Leave?
Self-employed individuals and independent contractors are not covered by Paid Leave but can choose to opt in beginning in 2025.
How does Paid Leave work for small employers?
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 businesses with 30 or fewer employees will be eligible for reduced premiums and may be eligible for small business assistance funding to hire temporary workers or to increase an existing worker’s wages.
Are municipalities and local government entities required to participate?
Yes, municipalities and local government entities are required to participate in Paid Leave.
If an employer is not required to participate in Unemployment Insurance, is that employer also exempt from Paid Leave?
Paid Leave is a new program distinct from Unemployment Insurance (UI). The Paid Leave law does not exclude the same employers that are excluded from UI. For example, religious organizations, non-profits, and agricultural employers are all required to participate in Paid Leave.
FrequentlyAskedQuestions (continued)
Are part time employees covered under Paid Leave?
Yes, part time employees are covered under the program.
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