Oct 1, 2025 · When Minnesotans apply for Paid Leave, they will have the option to withhold state and federal taxes from their weekly benefit. If an employee chooses this option, Minnesota …

Dec 19, 2025 · For more information about Paid Leave as an employee or employer, visit Minnesota Paid Leave on DEED’s website. Taxes and Paid Leave If you have questions about …

Oct 8, 2025 · As Minnesota prepares for its Paid Leave program, understanding the tax implications is crucial. Here’s a breakdown of key points to help navigate state and federal tax …

1 day ago · On Friday, December 19th, the federal Internal Revenue Service (IRS) changed its guidance regarding federal tax treatment for state Paid Leave programs in 2026. Specifically, it …

Dec 9, 2025 · At least a portion of the same benefits are taxable for federal income tax, though the amount depends on the type of leave (family or medical leave) and the amount the …

Like other state-run paid family leave programs, Minnesota Paid Leave is designed to be funded by both employees and employers via increased payroll taxes and employer premium payments.

Jan 24, 2025 · For reporting, the taxable medical leave benefit is treated as third-party sick pay paid by a party that is “not an agent of the employer.” Under this rule, while federal income tax …

Oct 6, 2025 · Minnesota Paid Leave Effective January 1, 2026, Minnesota is implementing a paid leave program that will be administered by the State and funded through a new payroll tax. We …

Jun 27, 2024 · been signed into law and are summarized as follows: Premiums Based upon actuarial guidance, the original 0.7% payroll tax on employers will most likely increase to. …

Find answers to common questions about state and federal taxes for individuals and employers under Minnesota Paid Leave.