Minnesota Payroll Information

Minnesota 2024 Minimum Wage:

• Large employer (annual gross revenue $500,000 or more)– $10.85 per hour
• Small employer (annual gross revenue less than $500,000) – $8.85 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.

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Minnesota Withholding Tax Registration

• Employers can register online using the Business Tax Registration website
• [email protected] 

Wages Subject to Minnesota Withholding

• 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

• Form W-4MN

Reciprocity

• 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
• 2024 Wage Base: $42,000

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

Additional Minnesota Business Resources

• • Minnesota Department of Labor and Industry
  • Minnesota Department of Revenue
  • Minnesota Secretary of State