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Minnesota Paid Family Medical Leave (PFML)

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Background:
The Minnesota Paid Family Medical Leave is a state-mandated program that provides paid leave for full and part-time employees who need time off for specific family or medical reasons. All employers, regardless of size or unemployment insurance exemptions, are required to participate in Paid Leave with exceptions for employees of tribal nations or the federal government and self-employed individuals who choose to provide their own coverage for themselves. Self-employed individuals and independent contractors can choose to opt into the MN PFLM beginning in 2025.

💡The IRS’s Revenue Ruling 2025-4, states that any excess employer PFML contributions made for an employee are considered an “employer pick-up.” These amounts must be included in the employee’s taxable wages, with required W-2 reporting starting in 2026.

Important Dates for MN PFML

Visit the MN PFML website for more info.

October 2024

  • First quarterly wage reports due from employers.
  • Patriot’s role: Patriot will file wage reports for Full Service customers who have completed their tax filing setup.

December 2025

  • Deadline for employers to notify employees about Paid Leave benefits.

January 2026

  • Premiums and deductions begin: The total premium rate for 2026 is 0.88% and includes both a Family Leave and a Medical Leave premium. 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.
  • Patriot’s role:  Patriot’s payroll software will calculate MN PFML premium contributions for all liable employees/companies.

April 30, 2026

  • The first premiums for MN PFML and filings are due.
  • Reporting Period: These reports and premiums are for wages paid to employees between January 1, 2026 – March 31, 2026.  
  • Patriot’s role: Patriot will collect, remit, and file MN PFML premiums for Full Service customers who have completed their tax filing setup.

Who needs to register for MN PFML account?

  • For employers with ALL employees covered by both UI and Paid Leave: a joint UI/Paid Leave account has already been automatically created. No TPA is needed.
  • Employers that have SOME employees not covered by UI (aka exempt from unemployment): need to also register for a Paid Leave Only account and grant Third-party authorization to Patriot. See the MN PFML website for more details on creating an account.  
  • Organizations with ALL employees not covered by the Unemployment Insurance program (aka: exempt from unemployment): need to set up a Paid Leave Only account on the Unemployment Insurance Minnesota website. Additional technical assistance is available from experienced UI staff for account setup. For more information and to register for a Paid Leave Only account visit the Unemployment Insurance Minnesota website.

How to Setup MN PFML 

  1. Go to Settings > Payroll > Paid Family Medical Leave
    • If you operate in more than one state with PFML navigate to the Minnesota tab.
  2. Answer: “Are you required to participate in the state run PFML program?”
    • If Yes –>
      • Answer: Are you considered a small Employee and eligible for a reduced premium? 
        • Small employers reported never exceeded 30 MN employees in any quarters between October 1, 2024 and September 30, 2025 (aka “basis period”), AND the MN employees’ average wage is less than 150% of the state annual average wage, aka SAAW. ( SAAW = SAWW x 52).
        • New employers should estimated their employee count and State Average Weekly Wage (SAWW).
      • Choose how to split the PFML premium between you and your employee. The total must equal 75% of the premium for small employers or 100% of the premium for regular employers. See the state’s website for details.
  3. Enter the effective date, (example 1/1/2026).
  4. Click “Save.”
  5. You will see an audit log of all of the changes you have made to the MN PFML at the bottom of the screen in Setting History.

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