 Employer Updates - May 2025
Implementation Update
Minnesota will be the 13th state to launch a statewide Paid Leave program. We’re committed to collaborating with stakeholders to build an intuitive and accessible Paid Leave program that works for businesses, individuals, healthcare providers, and all Minnesotans.
Updated tax guidance for Paid Leave
On January 15, 2025, the Internal Revenue Service (IRS) issued a ruling which explains how the federal government will approach income taxes for premiums and benefits received from a program like Minnesota Paid Leave.
This month, Paid Leave published new guidance on how Paid Leave will be treated by state and federal taxes. The guidance covers different situations including taxes for benefit payments and the premiums paid by both employers and employees.
Follow the link below to learn more.
engagement sessions wrap up
The Paid Leave team wrapped up a series of in-person events with local chambers of commerce to help employers get ready for Paid Leave.
Over the last two months, we joined events in Blaine, St. Paul, Eagan, Pine City, Minneapolis, Eden Prairie, Shoreview, Stillwater, Northfield, Hutchinson, and Red Wing.
At these events, we answered hundreds of questions from more than 2,000 people, including many small businesses, businesses owned by women and people of color, and a wide range of employers across industries. The questions and feedback we hear on the road are instrumental to our work to build Paid Leave with Minnesotans and ensure the program works for everyone who needs it.
If you missed any of these events, be sure to check out the webinars and other events we have coming up – more details on these are included below. You can also view the presentation slides on our website.
|
Equivalent plans: new resources available
As an employer, you can choose to meet your responsibilities under Paid Leave with an equivalent plan that meets or exceeds the coverage offered by the state. You can either purchase an equivalent plan through an insurance carrier or self-insure. If you self-insure, you will manage leave requests and payments on your own.
For employers thinking about self-insuring, we published two new resources this month to help you review requirements and compile the information you will need: a surety bond template and a self-insured plan guide to compile your information.
Upcoming webinars: learn more about Paid Leave
|
Intro to Paid Leave
This session will explain the basic elements of the program and answer questions about how it impacts both employers and employees.
|
Employer Engagement Webinar
During this webinar, we will provide an overview of Paid Leave, share recent updates, and answer your questions.
|
Paid Leave for Third Party Administrators Webinar
This webinar will delve into issues such as wage detail reporting and employer account creation, leave administration, equivalent plan exceptions and small business assistance.
Hiring Spotlight
The Minnesota Paid Leave team is growing fast. We are a start-up in state government and are actively hiring for leaders to deliver on the promises of the legislation. Consider joining our team!
Top Questions We're Hearing
-
When do I need to submit my request to ensure my equivalent plan is approved for my business before the program launches?
An equivalent plan can take effect at the start of any quarter, and Paid Leave will accept requests on a continuous basis. To ensure your plan is in place for a certain quarter, we recommend you submit your request as soon as you have your documentation ready. This will allow time for the Paid Leave team to review your request and ensure you have time to notify your employees, and for you to provide any additional information or documentation that may be required.
Submissions will open for equivalent plan requests in the coming months. Today, you can visit our website to prepare the information and documentation you will need to be ready to submit your request on day one.
-
Are remote workers covered by Paid Leave?
It depends on where the work is performed. Remote workers are covered by Paid Leave if they work at least 50 percent of their time from a location in Minnesota. This includes employees who work from home in Minnesota or spend some time working in other states. However, remote workers are not covered by Paid Leave if they work more than 50 percent of their time in a different state.
If an employee does not work at least 50 percent of their time in any single state – for example, if they split their time equally between Minnesota and two other states – they are covered if they live in Minnesota.
-
Are the rules for remote workers the same as under Unemployment Insurance?
Yes, Paid Leave and Unemployment Insurance (UI) have the same coverage requirements for where someone lives and works. That means if an employer pays Minnesota UI premiums for an employee, they should also pay Paid Leave premiums for that employee.
For More Information
You can find more information for employers, individuals, and families on our webpage here.
For more information on UI and Paid Leave employer accounts, visit the Unemployment Insurance website.
Still Have Questions?
If you have a Paid Leave question that isn’t yet answered on our website, please submit your question here.
If you need help with your Paid Leave Only or Joint UI/Paid Leave account, contact the Unemployment Insurance employer helpline.
|
