Payroll and Benefits Guide - United States - Minnesota

United States - Minnesota
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Currency

United States Dollar (USD)
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Capital

Saint Paul
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Employer Taxes

8.35% – 22.65%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Minnesota is known as the “Land of 10,000 Lakes,” but it actually has over 11,800 lakes within its borders.

Minnesota is home to the largest population of timber wolves in the lower 48 states.

The state’s hockey culture is strong, and Minnesota produces a significant number of professional hockey players.

Minneapolis, the largest city in Minnesota, has one of the highest concentrations of theater seats per capita in the United States outside of New York City.

Minnesota is home to many beautiful natural attractions, including the Boundary Waters Canoe Area Wilderness and Voyageurs National Park.

The world-famous artist Prince was born and raised in Minnesota, and his Paisley Park recording studio and home are located in Chanhassen.

United-States-Minnesota

Contributions

Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance0.10% – 9.00%
Unemployment- New EmployerIndustry average
FICA Social Security6.20%
FICA Medicare1.45%
FUTA0.60% – 6.00%

Payroll

Payroll Cycle

In general, employees in Minnesota are paid either semi-monthly or monthly, with payments on set dates as stipulated in the employee contract.

13th Salary

There is no legislation for 13th-month payments in Minnesota.

Work Hours and Week

In Minnesota, the standard working week is a maximum of 40 hours per week, 8 hours per day.

Overtime

Minnesota adheres to the Fair Labour Standards Act (FLSA), with overtime paid when employees work more than 40 hours in a single working week
United-States-Minnesota

Leave

Paid Time Off

Minnesota does not have any state statute governing the amount and payment of vacation time, however it is common for employers to offer paid vacation leave.

Public Holidays

There are 11 official holidays

Sick Days

Sick leave falls under the Family Medical Leave Act (FMLA). The FMLA 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).

Maternity Leave

Maternity leave falls under the Family Medical Leave Act (FMLA) .

Paternity Leave

Paternity leave falls under the Family Medical Leave Act (FMLA) .

Parental Leave

Parental leave falls under the Family Medical Leave Act (FMLA) .

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.”

Notice Period

In Minnesota, most employees are employed “at-will,” and either party can terminate the employment relationship without notice.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers need not make severance payments to terminated employees.

Probation Period

Probation Period

No legal provision governs a formal “trial /probation period.” However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States.

VAT

Minnesota has a minimum combined 2023 Sales Tax Rate of 7.43% (State tax at 6.88% and Local tax at 0.55% USD)