Minnesota Employer Cost Calculator
Every US employer pays the same federal payroll taxes. What changes in Minnesota is the state unemployment charge, an employer paid leave contribution and the wage floor. The figures below are for the 2026 tax year and were checked against Minnesota Department of Employment and Economic Development on 2026-09-05.
Minnesota at a glance
- Unemployment wage base
- $44,000
- New-employer rate
- The industry average for the employer's sector
- Employer paid leave
- Minnesota Paid Leave 0.88% in total (0.66% for small employers), with up to 0.44% deductible from the employee
- Minimum wage
- $11.41
Work out the employer cost of a Minnesota salary
Statutory employer taxes only. Provider fees, benefits, workers compensation and any bonus sit on top. The page opens on a $100,000 worked example; change the salary to price your own role.
Gross base pay before tax. Change it to price your own role.
Amount in USD- Federal taxes
- $7,692
- Minnesota charges
- $440
- Federal + verified state costs
- $8,132
- Salary plus known employer costs
- $108,132 a year, 8.1% on top of salary
| Charge | Basis | Per year |
|---|---|---|
| Social SecurityFederal | 6.2% of the first $184,500 | $6,200 |
| MedicareFederal | 1.45% of all pay, with no ceiling | $1,450 |
| Federal unemployment taxFederal | 0.6% of the first $7,000 after the full state credit | $42 |
| State paid leaveMinnesota | 0.44% of the first $185,000 | $440 |
| Federal + verified state costs | $8,132 | |
Unemployment rate used: Minnesota does not publish one starter rate that fits every employer, so no unemployment figure is included. The industry average for the employer's sector; Minnesota publishes no flat starter rate. Your own rate is set by the state once the account has a claims history, so ask your provider which rate it has been assigned.
Not included in the total
- • State unemployment insurance: The industry average for the employer's sector; Minnesota publishes no flat starter rate. Ask your provider for the rate its account is assigned.
- • Workforce development fee and additional assessment: Minnesota charges a workforce development fee and, when the trust fund falls below its statutory level, an additional assessment; both are set annually and neither is published as a fixed starter figure.
Workers' compensation depends on the occupation class code, the payroll and the insurer or state fund, so it is a conditional, occupation-dependent cost and is not included in this estimate. Local employer taxes may apply depending on the work location.
What changes in Minnesota?
Social Security, Medicare and federal unemployment tax are identical in every state and come to $4,632 on the $100,000 example. What Minnesota adds on top is $264, made up of the lines below.
- State paid leave: 0.44% of the first $185,000, $264 a year.
- Minimum wage: $11.41. This does not change the employer tax, but it sets the floor for the salary you can enter above.
Minnesota does not publish one starter unemployment rate that applies to every employer, so unemployment tax is not included in the figures above. The industry average for the employer's sector; Minnesota publishes no flat starter rate. The rate that applies to you depends on the industry or category the state assigns your account, so ask your provider which rate its entity carries in Minnesota.
Federal floor and Minnesota charges, separated
Open a line to see what makes it up and the source behind it, on the $60,000 salary above.
The same employee at other salaries
| Salary | Federal | Minnesota | Federal + verified state costs | Share of salary |
|---|---|---|---|---|
| $30,000 | $2,337 | $132 | $2,469 | 8.2% |
| $60,000 | $4,632 | $264 | $4,896 | 8.2% |
| $100,000 | $7,692 | $440 | $8,132 | 8.1% |
| $150,000 | $11,517 | $660 | $12,177 | 8.1% |
| $250,000 | $15,106 | $814 | $15,920 | 6.4% |
The share of salary falls as pay rises because unemployment tax stops once the wage base is reached, while Medicare keeps running on every dollar.
The federal floor, identical in every state
- Social security
- 6.2% on the first $184,500 of pay
- Medicare
- 1.45% with no cap (a further 0.9% is employee-paid above $200,000)
- Federal unemployment
- 6.0% gross, 0.6% after the full state credit, on the first $7,000
Source: IRS Publication 15 (2026) and the Social Security Administration. Reviewed 2026-09-05. State figures: Minnesota Department of Employment and Economic Development, reviewed 2026-09-06. This page is general information, not legal or tax advice. See our methodology.
Where these figures come from
Each line says who published the figure and how firm it is. We never blend an official figure with an estimate.
| Figure | Published by | Kind of source | How firm |
|---|---|---|---|
| Unemployment wage base and rate | Unemployment Insurance Minnesota (DEED) | Official government figures | Depends on the employer's industry |
| Employer paid leave | Minnesota Paid Leave (DEED) | Official government figures | Confirmed on the official page |
| Minimum wage | Unemployment Insurance Minnesota (DEED) | Official government figures | Confirmed on the official page |
| Federal payroll taxes | IRS Publication 15 (2026) and the Social Security Administration | Official government figures | Confirmed on the official page |
Unemployment wage base and rate
Employer paid leave
Minimum wage
Workforce development fee and additional assessment
Hiring in Minnesota through a provider
The taxes above are the same whichever provider you use. What differs is the monthly fee and whether the provider is already registered in Minnesota.
Other states we cover in detail
Compare other Midwest states
Same US Census region as Minnesota.
States with employer-funded leave programmes
These states charge the employer directly for paid family leave or disability insurance.
Related
FAQ
On a $100,000 salary the statutory employer cost works out at about $4,896 a year excluding variable unemployment tax, of which $4,632 is federal and $264 is charged by Minnesota. Provider fees, benefits and workers compensation sit on top of that.
Minnesota does not publish one flat starter rate. The industry average for the employer's sector; Minnesota publishes no flat starter rate.
Minnesota Paid Leave is 0.88% of pay up to the social security wage limit, of which the employer may deduct 0.44% from the employee. Small employers may qualify for a reduced total rate.
$11.41. A county or city inside the state can set a higher floor, so check the local rate for the exact work location before you set pay.
Yes. Most international providers hold registrations in all 50 states, but registration and the first payroll run in a new state can take a couple of weeks, so confirm the provider is already set up in Minnesota before signing.