Minnesota vs New York Payroll Comparison

Compare payroll compliance requirements between Minnesota and New York. See key differences in wages, taxes, leave policies, and employer obligations.

Compare State Payroll Requirements

Select 2 states to compare their payroll compliance requirements side-by-side.

Compare 3-5 states with Pro
Popular:
RequirementMinnesotaNew York
Minimum Wage (Large Employer)⚠️$10.85/hour (2024)N/A
Minimum Wage (Small Employer)⚠️$8.85/hour (2024)N/A
Tipped MinimumSame as regular minimum wage (no tip credit)Varies by region and industry
Overtime Threshold40 hours/week (federal FLSA)40 hours/week (FLSA)
Final Pay (Termination)⚠️Immediately on demandNext regular payday
Final Pay (Resignation)Next regular paydayNext regular payday
PTO Payout Required?⚠️Yes (if policy provides)No (unless policy requires)
Pay Frequency MandateAt least monthly; within 15 daysWeekly for manual workers; semi-monthly for others
State Income Tax⚠️Yes (5.35% - 9.85%)⚠️Yes (4% - 10.9%)
Unemployment InsuranceYesYes
State Disability InsuranceNo⚠️Yes (DBL required)
Paid Family LeaveComing 2026⚠️Yes (up to 12 weeks)
Paid Sick Leave⚠️Yes (Earned Sick & Safe Time - 48 hrs/yr)⚠️Yes (40-56 hours depending on employer size)
Workers' Comp Required⚠️Yes (all employers)⚠️Yes (all employers)
Minimum WageN/A⚠️$17.00/hr NYC/LI/Westchester, $16.00/hr rest of state (2026)
⚠️More restrictive / complexSimpler / no requirement

Summary

Minnesota has the most complex compliance requirements with 7 restrictive rules compared to New York's 6.

Key Differences: Minnesota vs New York

MNMinnesota

  • Minimum Wage (Large Employer):$10.85/hour (2024)
  • Minimum Wage (Small Employer):$8.85/hour (2024)
  • Tipped Minimum:Same as regular minimum wage (no tip credit)
  • Overtime Threshold:40 hours/week (federal FLSA)
  • Final Pay (Termination):Immediately on demand
  • Final Pay (Resignation):Next regular payday
View full Minnesota guide →

NYNew York

  • Minimum Wage:$17.00/hr NYC/LI/Westchester, $16.00/hr rest of state (2026)
  • Tipped Minimum:Varies by region and industry
  • Overtime Threshold:40 hours/week (FLSA)
  • Final Pay (Termination):Next regular payday
  • Final Pay (Resignation):Next regular payday
  • PTO Payout Required?:No (unless policy requires)
View full New York guide →

Understanding Minnesota and New York Payroll Differences

State Income Tax: Minnesota has state income tax (Yes (5.35% - 9.85%)), while New York has state income tax (Yes (4% - 10.9%)). This significantly impacts both employer withholding responsibilities and employee take-home pay.

Minimum Wage: Minnesota minimum wage is $10.85/hour (2024), compared to New York at $17.00/hr NYC/LI/Westchester, $16.00/hr rest of state (2026). Employers must pay at least the higher of federal, state, or local minimum wage requirements.

Paid Sick Leave: Minnesota: Yes (Earned Sick & Safe Time - 48 hrs/yr). New York: Yes (40-56 hours depending on employer size). States with mandatory paid sick leave require employers to track accruals and provide specific leave entitlements.

For complete compliance requirements, review the full state guides for Minnesota and New York.