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Minnesota has a top income tax rate of 9.85%, mandatory Earned Sick and Safe Time from 2024, and a Paid Leave program launching in 2026. Minneapolis and St. Paul add local minimum wage layers. Rippling tracks all of it.
Minnesota is a major Midwestern economy with strengths in healthcare, financial services, retail (Target, Best Buy, UnitedHealth HQ), and a growing technology sector in the Twin Cities. Minnesota payroll is defined by a high progressive income tax (top rate 9.85%), mandatory Earned Sick and Safe Time (effective January 2024), a Paid Leave program launching in January 2026, and local minimum wages in Minneapolis and St. Paul. The SUI wage base ($42,000) is among the highest in the US.
Rippling’s Minnesota payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| MN SUI (DEED) | New employer 1.0% | On first $42,000 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Mandatory |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| MN State Income Tax | 5.35%–9.85% | 4-bracket; top rate 9.85% above $183,340 single (2024) |
| Minnesota Income (Single, 2024) | MN Rate |
|---|---|
| Up to $30,070 | 5.35% |
| $30,071–$98,760 | 6.80% |
| $98,761–$183,340 | 7.85% |
| Above $183,340 | 9.85% |
MN withholding remitted to MN DOR. Minnesota requires its own W-4MN form (does not fully conform to federal W-4).
Final Pay: Voluntary resignation: next scheduled payday. Involuntary termination: within 24 hours of demand if employee requests immediately. Accrued vacation: MN Wage Payment Act treats promised vacation as wages.
Minnesota’s Paid Leave Program launches January 1, 2026. It provides up to 20 weeks of paid family or medical leave funded by a 0.88% payroll tax. Employers must register with DEED and begin withholding in 2026. Rippling will manage MN Paid Leave registration, withholding, and filings when the program launches.
Minneapolis: $15.57/hour (January 2024, equalized for all employer sizes). St. Paul: $15.57/hour for large employers (10,001+ employees); lower rates for smaller employers. State minimum: $10.85/hour (large) / $8.85/hour (small). Rippling applies the correct rate by employer size and work location.
Minnesota’s ESST law (effective January 1, 2024) requires all employers to provide 1 hour of paid sick and safe time for every 30 hours worked, up to 48 hours per year. Applies to all employers regardless of size. Rippling tracks ESST accrual for all Minnesota employees.
Minnesota’s state minimum wage is $10.85/hour (large employers with annual gross revenue above $500,000) and $8.85/hour (small employers) for 2024. Minneapolis and St. Paul have higher local minimums. The state minimum is indexed annually to inflation.
