Minnesota Releases New Info on PFML Wage Reporting

May 9, 2024 Last Edit: June 5, 2025

Paid Family Medical Leave Wage Reports Will Be Identical to UI Reports, First Reports Due 10/31/24

Minnesota Releases New Info on PFML Wage Reporting

Over the strong objections of NFIB, the Minnesota Legislature passed a mandatory state-run Paid Family and Medical Leave (PFML) program in May 2023. NFIB Minnesota remains committed to rolling back the PFML mandate on small businesses with a suite of reforms and an ultimate goal of exempting small businesses entirely. As the Walz Administration prepares to implement the program, which launches on January 1, 2026, we also want our members to have the most up-to-date information on what’s required on your part. The new Paid Leave Division within the Minnesota Department of Employment and Economic Development (MN DEED) sends periodic updates to PFML email subscribers. You can sign up for these updates here: Subscribe to MN DEED PFML Updates. If you have a question for the Paid Leave Division, you can submit it directly at this link or email State Director John Reynolds who can ask the question anonymously on your behalf. Below is the most recent update on the MN PFML program, which addresses how employers will submit quarterly wage reports that will be used to determine an employer’s PFML Premium Tax and an employee’s PFML eligibility and benefit amount. Already Have An Unemployment Insurance Account? As MN DEED explains below, no further action is required. UI accounts will be converted to joint UI/PFML accounts. No Unemployment Insurance Account? Non-UI employers will need to register for a PFML-only account. MN DEED will provide further instructions this summer. When Are the First Wage Reports Due? 10/31/2024, and will cover the period from 7/1 to 9/30. When Are PFML Taxes Due? The first PFML Tax payment is not due until the end of the first quarter of 2026, and will be based on qualifying wages during that quarter. —– Full MN DEED Paid Leave Division Wage Report Update: Wage Detail Reporting Questions and Answers Starting in July, most employers will be able to submit quarterly wage detail reports to the Paid Leave program. To help employers prepare, we’ve assembled a list of frequently asked questions about the process and timeline. What is wage detail reporting and why is it necessary for Paid Leave? Every quarter, employers across the state are required to submit a report to the state that details wages paid to their employees. This report is important because it provides the state with administrative data that helps support programs, complete labor market analyses, and comply with reporting requirements. Paid Leave needs this information to support administration of the program in two important ways: (1) when premiums are due, they will be based on a percentage of wages paid to employees and (2) when benefits start, we’ll use wage detail to establish eligibility for the program and determine the benefit amount. How will employers submit wage detail reports for Paid Leave? The Paid Leave division will leverage the existing Unemployment Insurance (UI) UI Online system to collect wage detail reports for the program. If an employer is covered by the UI program, they will be able to submit a single wage detail file for both programs when they pay their UI taxes. The data used in the UI filing will be used to report wages directly to the Paid Leave program. If an employer is not covered by the Unemployment Insurance program, they will need to set up a “Paid Leave Only” account. This account will be available in the Spring. My organization is covered by the Unemployment Insurance program, what do I need to do? Nothing! Your UI employer account will be automatically converted into a joint UI/Paid Leave to allow you to submit your wage detail report using the same process you use today. My organization is not covered by the Unemployment Insurance program, what do I need to do? During summer 2024, you will need to register for a Paid Leave Only account through the UI Online system. We will post instructions on our website as soon as Paid Leave Only accounts are available. When are the first wage detail reports due? The first wage detail reports will be due on October 31, 2024, and will be based on wages paid between July 1, 2024, and September 30, 2024. Do employers need to pay premiums for the Paid Leave program when submitting wage detail reports? No, premiums do not need to be paid until after the Paid Leave program launches in 2026. The initial wage detail reports are for informational purposes only. The first premiums for Paid Leave will not be due until April 30, 2026, and those initial premiums will only apply to wages earned between January 1, 2026, and March 31, 2026. What information will employers need to include on a wage detail report? Employers will need to provide the first and last name, social security number, wages paid and hours worked for each employee. This is identical to information provided to the Unemployment Insurance division. There is more information on wage detail reporting at: Updated pages to submit and adjust wage detail information / Employers – Unemployment Insurance Minnesota (uimn.org)

Topics:

Taxes

State:

Minnesota