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Country Payroll Guide USA – Minnesota
We deliver secure, compliant, accurate and touchless global payroll for USA - Minnesota.

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.