Paid Leave reporting requirements begin July 1, 2024

The legislature in 2023 passed a bill creating paid family and medical leave which goes into effect 1/1/2026.  The program is being administered by the MN Department of Employment and Economic Development (DEED), commonly known as the MN Unemployment Office.  The first reporting of wages for paid leave begins July 1, 2024.  For many employers there is no additional reporting requirement, as the paid leave will use the employer’s wage and detail reports that are submitted for state unemployment tax reporting.  However, some employers have employees that are not covered by state unemployment, such as S Corporation owners who own more than 25% of their business and have not elected to be covered by state unemployment.  Another example are tax exempt organizations such as churches and nonprofits.  For these employers, new accounts, referred to as “Paid Leave” accounts will need to be established with DEED.  Wages for employees that are not covered by unemployment insurance will need to be reported to the paid leave account.   No tax will be assessed until January 1, 2026.  DEED will give employers that miss this first deadline some grace.  But their agents highly recommend that employers set up the necessary account and begin reporting as soon as possible.  To determine if you need to set up and begin separate reporting for paid leave, refer to the following link.  As always, we are here to help, so please give us a call if you have any questions.

 Paid Leave Minnesota / Employers - Unemployment Insurance Minnesota (mn.gov)