Country Payroll Guide USA – Minnesota

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Key Facts

Capital
Saint Paul
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 6.88%

Contributions

Employers

Unemployment Insurance (State)
Unemployment (State) - 0.20% to 9.2%
Unemployment- New Employer (State)
Unemployment- New Employer (State) - depends on the industry
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employment Cost
Total Employment Cost - up to 19.75%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6%
Total Employee Cost
Total Employee Cost - up to 14.55%

Minimum Wage

Minimum Wage

The minimum wage in Minnesota depends on the size of the company, the rates are as follows:

  • $10.08 per hour for large employers
  • $8.21 per hour for small employers

Payroll

Payroll Cycle
Monthly, Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Employee Income Tax (1) Single Filer (Federal)
$0 - $9,875 = 10%
Employee Income Tax (2) Single Filer (Federal)
$9,876 - $40,125 = 12%
Employee Income Tax (3) Single Filer (Federal)
$40,126 - $85,525 = 22%
Employee Income Tax (4)Single Filer (Federal)
$85,526 - $163,300 = 24%
Employee Income Tax (5) Single Filer (Federal)
$163,301 - $207,350 = 32%
Employee Income Tax (6) Single Filer (Federal)
$207,350 - $518,400 = 35%
Employee Income Tax (7) Single Filer (Federal)
Over $518,400 = 37%

Employee Income Tax (State)

Employee Income Tax (State) (1)
0 - $27,230 = 5.35%
Employee Income Tax (State) (2)
$27,230 - $89,440 = 6.80%
Employee Income Tax (State) (3)
$89,440 - $166,040 = 7.85%
Employee Income Tax (State) (4)
Over $166,040 = 9.85%

Working Hours

General Working Hours

40 hours per week, eight hours per day.

Overtime

Overtime must be paid at a minimum of 150% of the employee’s regular wage.

Leave

Paid Time Off

There are no statutory laws regarding annual leave in Minnesota.

Public Holidays

10 public holidays.

Sick Days

There are no statutory laws on sick leave in Minnesota, however, an employer may be obligated to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child). Employers are required to maintain the employees’ health benefits during their leave and keep their job open.

Maternity Leave

Maternity leave falls under FMLA.

Paternity Leave

Paternity leave falls under FMLA.

Parental Leave

Parental leave falls under FMLA.

Termination

Termination Process

In Minnesota, both the employer and employee can terminate the employment contract at any time, once no discrimination has taken place in the process. If an employee requests, the employer must provide reason for termination in writing within 15 days of the termination.

Notice Period

There are no provisions in the law outlining notice, however, dismissal in Minnesota follows the federal Worker Adjustment and Retraining Notification Act (WARN) which outlines 60 days’ notice for mass layoffs.

Severance Pay

There is no requirement for severance pay, it is a matter of agreement between an employer and an employee.

Probation Period

Up to 30 days.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.