Valor Payroll Solutions
Minnesota Payroll Information
Enterprise payroll expertise, exclusively for small businesses.
Paying Employees in Minnesota
- Large employer (annual gross revenue $500,000 or more)– $10.59 per hour
- Small employer (annual gross revenue less than $500,000) – $8.63 per hour
Minnesota Overtime Rules:
- Minnesota law requires that overtime be paid at 1.5 x’s the regular rate for all hours worked in excess of 48 hours in a workweek, which is less favorable to an employee than FLSA rules, so FLSA rules apply.
Minnesota Paystub Requirements:
At the end of each pay period, the employer shall provide each employee an earnings statement, either in writing or by electronic means, covering that pay period. An employer who chooses to provide an earnings statement by electronic means must provide employee access to an employer-owned computer during an employee’s regular working hours to review and print earnings statements.
The earnings statement may be in any form determined by the employer but must include:
- Employee name
- Pay rate and the basis for payment (hourly, salary, piece work, etc)
- Allowances, if any, claimed pursuant to permitted meals and lodging;
- Total number of hours worked unless exempt from chapter 177;
- The total amount of gross pay
- A list of deductions made from the employee’s pay
- The net amount of pay after all deductions are made
- The pay period end date
- The legal name of employer (and operating name if different)
- Employer’s physical address (and mailing address if different)
- Employer telephone number
An employer must provide earnings statements to an employee in writing, rather than by electronic means, if the employer has received at least 24 hours notice from an employee that the employee would like to receive earnings statements in written form. Once an employer has received notice from an employee that the employee would like to receive earnings statements in written form, the employer must comply with that request on an ongoing basis.
How often do you have to pay employees in Minnesota?
- Employees must be paid on a regular schedule at least once every 31 days.
When is an employee’s final check due in Minnesota?
- Voluntary resignation – wages are due by the next payday that’s at least 5 days after an employee’s last day but no more than 20 days after the last day worked.
- Involuntary termination – wages are due within 24 hours of demand.
Minnesota Withholding Tax Registration
- Wages for work performed in Minnesota is subject to Minnesota withholding tax unless the employee is a resident of a reciprocal state, or the employee is a resident of another state and you will pay them less then $12,200
Minnesota Employee’s Withholding Exemption Certificate
- Michigan and North Dakota
Minnesota Withholding Tax Due Dates
- Due quarterly if more than $500 in prior year by the last day of the month following the quarter end
- Due annually by Jan 31 if withholding was $500 or less in the prior year
Minnesota Unemployment Tax Registration
- Employers can register for a Minnesota Unemployment Insurance Tax account online on the Minnesota Unemployment Insurance website
Minnesota Unemployment Tax Employer Liabilities
- New employer rate: New employers receive industry rate
- 2023 Wage Base: $40,000
Minnesota Unemployment Tax Due Dates
- Return and payment are due quarterly on the last day of the month following the end of the reporting period
Minnesota New Hire Reporting
- Employers must report new hires/rehires to the state within 20 days
- Employers can report new hires online using the Minnesota New Hire Reporting Center’s website
- Minnesota New Hire Reporting Center
PO Box 64212
St Paul, MN 55164-0212
- Phone: (800) 672-4473
- Fax: (800) 692-4473
Minnesota Child Support
- Employers can remit child support payments online using the Minnesota Child Support Online website
- Minnesota Child Support Payment Center
PO Box 64306
St. Paul, MN 55164-0306
- Phone: (800) 657-3890