Sage 50 US Ideas Portal

Minnesota LAW for Paid Leave that starts on 1/1/2026

This needs to be a HIGH Priority for MN Employers using Sage 50 program for payroll.

Premium rates are set to ensure the Paid Leave program is able to cover the cost of benefits and can best serve its users. The Paid Leave premium rate of 0.88 percent for 2026 covers the premium for medical leave (0.61 percent), for your own medical care, and family leave (0.27 percent), to care for others.


Total Premium Rate

0.88%

Max. Employee Contribution Rate

0.44%

Max. Weekly Benefit

$1,423



Min. Small Employer Contribution Rate

0.22%


Employers must pay at least 50 percent of the total premium and can deduct the remainder from employee pay. Employers may also choose to pay up to 100 percent of the premium for their employees. Small employers pay a reduced premium rate. The maximum contribution from employees in this case is the same as an employee of a large employer.

After the first year in 2026, the premium rate will be set annually by July 31 for the following year. The premium will be based on how the program is running, and best budgeting practices to keep the fund at a healthy level. The rate will be informed by an independent actuarial study. The premium rate cannot be more than 1.2 percent as set in Minnesota's Paid Leave law.

Employee payroll: Premium payment amounts due will be based on the payroll reported each quarter by employers through wage detail reports. The calculator asks for payroll from the past year to provide an estimate of premium amounts by week, month, quarter, or year.


WE QUALIFY for the small employer premium beings we employ less than 30 people.

Small employer premiums: Employers who qualify for the reduced small employer rate are responsible for half of the standard employer contribution. The maximum contribution from employees in this case is the same as an employee of a large employer. Like other employers, small employers may choose to cover any amount of employees' share of the premium


  • Naomi Madson
  • Nov 6 2025
  • Naomi Madson commented
    06 Nov 16:47

    We are required to have the payroll deduction as a small employer beginning of January 2026 and would like to have these in place for the deduction to start immediately upon first payroll of 2026. Please help with this.

    small employer and employee deductions