Minnesota’s new Paid Family Medical Leave Program
Starting in 2026, Minnesotans will have access to a new paid leave program, providing financial support and job protection for life's most significant moments.
Here's a breakdown of what you need to know about the program, including premium rates, employer and employee eligibility, registration info, key resources and steps for setting up a policy in QuickBooks.
Premium Rates and Contributions
Minnesota’s PFML program is funded by a premium on employee wages, which is shared by both the employer and employee.
Premium Rate: For 2026, the premium rate is set at 0.88% of an employee's wages.
Contribution Split: The total premium is split evenly between employers and employees. This means each will contribute 0.44% of the employee's wages. Employers may also choose to pay up to 100% of the employee contribution.
Small Employer Rate: Employers with 30 or fewer employees may be eligible for a reduced employer premium rate of 0.22%, as long as their average employee wage is less than 150% of the statewide average weekly wage. Employees at these businesses will still contribute the standard 0.44%.
First Payments: The first premium payments are due from employers by April 30, 2026, based on wages from January 1, 2026, through March 31, 2026. Employers can begin deducting the employee portion of the premium starting January 1, 2026.
Employee and Employer Eligibility
The Minnesota Paid Family and Medical Leave program is designed to be broadly inclusive.
Employee Coverage: The program covers nearly all employees in Minnesota, including full-time, part-time, temporary, and most seasonal employees, as long as they have earned at least $3,700 in the last year. Self-employed individuals and independent contractors can voluntarily opt into the program.
Employer Coverage: Nearly every employer in the state is covered, regardless of business size or number of employees.
What actions should Minnesota employers take right away?
Minnesota has put together a list of 3 important steps that Minnesota employers should take right away as follows:
Step One: Set up Your Paid Leave Administrator Accounts Now:
Before launch, employers must set up their Employer Account, designate a Paid Leave Administrator within their Employer Account and create an Administrator Account with Paid Leave.
- Go to uimn.org to register for an Employer Account. Most employers will already have one. This account will be used to submit wage detail reports and pay Paid Leave premiums.
- Employers must designate a Paid Leave Administrator in their Employer Account by following this step-by-step guide. This person will be the main point of contact between the organization and Minnesota Paid Leave.
- Employers must also create a Paid Leave Administrator Account at paidleave.mn.gov. This account is where administrators review leave applications and view Paid Leave determinations.
Step Two: Notify Employees:
By Dec. 1, employers must notify their employees about the Paid Leave program’s launch. Employers are required to hang a Paid Leave poster and inform employees individually.
- Posters must be displayed where employees can easily see them and must be posted in English and any other language that is primary for five or more workers.
- Employees must be notified individually in their primary language, and employees must acknowledge that they have received the information. This can be done by signing a form, acknowledging receipt electronically, or in another way decided by the employers.
- Posters and notices can be downloaded from the For Employers page on the Paid Leave site.
Step Three: Customize Paid Leave to Your Workplace:
By January 1, employers should also make important decisions about how to set up their individual workplace policies under Paid Leave, including deciding how to split program premiums, deciding whether to offer supplemental payments to “top off” Paid Leave payments for employees taking leave and other items.
- Details on these and other policies can be found on the Paid Leave website's For Employers page.
Key Resources and Links
For the most up-to-date and comprehensive information, it is recommended to visit the official agency website.
- Minnesota Paid Leave Official website
- Employer Information:
- Individual and Family Information
- Minnesota's official FAQ section
Setting up and tracking MN Paid Leave in QuickBooks
The ability to set up and track MN PFML is now available in QuickBooks Online Payroll! Set up your policy and assign to all MN employees by December 28! To set up your policy, follow the instructions in our support article.
For QuickBooks Desktop Payroll customers, the ability to add your policy will be available with the major year-end payroll update on Thursday, December 18. Steps to set up your policy are outlined in our support article.
