Payroll Compliance Guide

Minnesota Payroll Compliance Guide

Complete Reference for Multi-State Employers

Last updated: January 2025 • 60+ requirements covered

Key Facts at a Glance

RequirementMinnesota Rule
Minimum Wage (Large Employer)$10.85/hour (2024)
Minimum Wage (Small Employer)$8.85/hour (2024)
Tipped MinimumSame as regular minimum wage (no tip credit)
Overtime Threshold40 hours/week (federal FLSA)
Final Pay (Termination)Immediately on demand
Final Pay (Resignation)Next regular payday
PTO Payout Required?Yes (if policy provides)
Pay Frequency MandateAt least monthly; within 15 days
State Income TaxYes (5.35% - 9.85%)
Unemployment InsuranceYes
State Disability InsuranceNo
Paid Family LeaveComing 2026
Paid Sick LeaveYes (Earned Sick & Safe Time - 48 hrs/yr)
Workers' Comp RequiredYes (all employers)

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