Effective January 1, 2026, a new paid family and medical leave (PFML) program took effect in Minnesota. The program requires employers to make contributions, including employee payroll deductions. Employers must pay at least 50% of the total contribution and can deduct the rest from employee wages. Contributions are made quarterly, with the first payments due on April 30, 2026.
The taxable wage base for Minnesota PFML contributions is set to the federal social security wage base ($184,500 for 2026) rounded to the nearest thousand. For 2026, the taxable wage base for Minnesota PFML is $185,000. The rounding policy is not explicitly stated in the PFML law or on the Paid Leave website. PayrollOrg confirmed the policy with the Minnesota Department of Employment and Economic Development via email.
For 2026, the employee contribution rate is 0.44% of wages up to the taxable wage base. The maximum employee contribution is $814 for 2026. The standard employer contribution rate is 0.88% of wages up to the taxable wage base (0.66% for small employers with 30 or fewer employees). The maximum employer contribution is $1,628 ($1,221 for small employers) for 2026.
For more information on PFML calculations, visit the state’s Paid Leave premium calculator.
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Lorelei Abernathy, Esq., is Editor of PayState Update and Editor of Payroll Information Resources for PayrollOrg.