Minnesota is known as the “Land of 10,000 Lakes,” but it actually has over 11,800 lakes within its borders.
Payroll and Benefits Guide - United States - Minnesota
Fun Facts
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.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| FICA Social Security | 6.20% |
| FICA Medicare | 1.45% |
| Additional tax | 0.90% |
Employer Payroll Tax
| Contribution Type | Rate |
| Unemployment Insurance | 0.10% – 9.00% |
| Unemployment- New Employer | Industry average |
| FICA Social Security | 6.20% |
| FICA Medicare | 1.45% |
| FUTA | 0.60% – 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
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)