Employer payroll taxes in Minnesota for 2026
On top of each paycheck, a Minnesota employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add $5,642.24 a year, so the employee costs $65,642.24.
| Employer tax | Rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Federal unemployment (FUTA) | 0.6% | First $7,000 |
| Minnesota unemployment (SUTA) | 1.696% for new employers | First $44,000 |
| MN paid leave | 0.44% | First $185,000 |
Minnesota unemployment tax (SUTA)
Minnesota employers pay state unemployment tax on the first $44,000 of each employee's wages in 2026. A new employer starts at 1.696%, and experienced employers pay from 0.556% to 10.702% depending on their layoff history.
Most new employers pay 1.696%: a 1% industry rate and 0.4% base rate, a 14% additional assessment, and a 0.1% workforce fee. Some industries start higher.
Minnesota paid leave and disability programs
The employer's share of these state programs is a payroll tax too. The calculator includes each one that applies to your headcount.
| Program | Employer rate | Wages taxed | Who pays |
|---|---|---|---|
| MN paid leave | 0.44% | First $185,000 | All employers |
Minnesota Paid Leave premiums began January 1, 2026. Employers pay at least half of the 0.88% premium. Some small employers qualify for a lower premium.
What an employee costs in Minnesota
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with 10 employees. Benefits and workers' compensation insurance are extra.
| Salary | Employer taxes | Total cost | Added to pay | Employee take-home |
|---|---|---|---|---|
| $30,000 | $2,977.80 | $32,978 | 9.9% | $25,367 |
| $40,000 | $3,956.40 | $43,956 | 9.9% | $32,823 |
| $50,000 | $4,833.24 | $54,833 | 9.7% | $40,258 |
| $60,000 | $5,642.24 | $65,642 | 9.4% | $47,569 |
| $75,000 | $6,855.74 | $81,856 | 9.1% | $57,686 |
| $100,000 | $8,878.24 | $108,878 | 8.9% | $73,463 |
| $125,000 | $10,900.74 | $135,901 | 8.7% | $89,174 |
| $150,000 | $12,923.24 | $162,923 | 8.6% | $104,189 |
Withholding from Minnesota paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare and Minnesota income tax, along with MN paid leave. Employees checking their own pay can use the Minnesota paycheck calculator. Running a bonus? Use the bonus payroll calculator.
Minnesota employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate. Of the states that border Minnesota, Iowa has the lowest employer taxes.
| State | State unemployment | All employer taxes | Total cost |
|---|---|---|---|
| Minnesota | $1,010.24 | $5,642.24 | $65,642 |
| Iowa payroll calculator | $204.00 | $4,836.00 | $64,836 |
| North Dakota payroll calculator | $466.00 | $5,098.00 | $65,098 |
| South Dakota payroll calculator | $262.50 | $4,894.50 | $64,895 |
| Wisconsin payroll calculator | $427.00 | $5,059.00 | $65,059 |
Sources
Minnesota unemployment and program rates come from the state's own 2026 figures: uimn.org, uimn.org, uimn.org. Federal figures follow IRS Publication 15 and Publication 15-T. See how we calculate for the withholding method.