Minnesota's New Paid Family & Medical Leave Program: Rates, Wage Base & Q1 Deadlines
Minnesota PFML launched January 1, 2026. Contributions are mandatory. The first quarterly payment is due April 30, 2026. Taxable wage base is $185,000.
- Effective January 1, 2026 — contributions are mandatory for all employers with Minnesota employees.
- First quarterly payment: April 30, 2026 (Q1 2026). Late payments may trigger penalties from MN DEED.
- Taxable wage base: $185,000 (federal SS wage base of $184,500 rounded to nearest thousand).
- Employee rate: 0.44% · Standard employer rate: 0.88% · Small employer (≤30): 0.66%.
- Employers must pay at least 50% of the total contribution — the remainder may be deducted from employee wages.
Program Overview
Minnesota's paid family and medical leave (PFML) program took effect January 1, 2026, requiring all employers with Minnesota workers to remit quarterly contributions — including mandatory employee payroll deductions. This is among the most significant new state payroll compliance obligations of 2026 for multi-state employers.
2026 Contribution Rates
| Contributor | Rate | Annual Maximum | Wage Base |
|---|---|---|---|
| Employee | 0.44% | $814.00 | $185,000 |
| Standard Employer (31+ employees) | 0.88% | $1,628.00 | $185,000 |
| Small Employer (≤30 employees) | 0.66% | $1,221.00 | $185,000 |
Taxable Wage Base: $185,000
The Minnesota PFML taxable wage base equals the federal Social Security wage base rounded to the nearest thousand. The 2026 Social Security wage base is $184,500 — which rounds to $185,000. Wages above $185,000 per employee are exempt from Minnesota PFML contributions. This rounding policy was confirmed directly by MN DEED.
Employer Cost-Sharing Rules
Employers must cover at least 50% of the total combined contribution. For standard employers at the 0.88% combined rate, the minimum employer obligation is 0.44%, with employees contributing up to the remaining 0.44%. Employers may elect to cover up to 100% of total contributions.
| Component | Rate | Annual Amount | Who Pays |
|---|---|---|---|
| Employee share | 0.44% | $352.00 | Withheld from employee wages |
| Employer minimum share | 0.44% | $352.00 | Employer expense |
| Total combined | 0.88% | $704.00 | Split per above |
Action Checklist
- Automatic federal tax table updates
- Multi-state withholding engine
- ADP, Paychex & Dynamics 365 sync
- Built-in compliance audit trail
- WEEKLY DIGEST
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