MINNESOTA PAYROLL RESOURCES · MN · REVIEWED 2026-10-03
Review Minnesota earnings-statement requirements, sick-and-safe-time reporting, withholding resources, unemployment insurance, and official employer guidance. Run payroll for a small team and get employee statements from every calculated run.
AT A GLANCE
Minnesota requires a detailed earnings statement at the end of each pay period. The state also requires employers to provide employees with earned sick and safe time information each pay period, although that information may be delivered through the earnings statement or another accessible electronic system. Employers must retain copies of employee earnings statements for three years.
Minnesota earnings statements include the employee’s name, rates and basis of pay, applicable hours, gross pay, deductions, net pay, pay-period end date, and specified employer identity and contact information.
See details →Use the current Minnesota Department of Revenue withholding instructions and employee withholding information for the actual payroll frequency and wages being paid.
View withholding guidance →Minnesota’s 2026 UI taxable wage base is $44,000. The 2026 base tax rate is 0.40%, while an employer’s experience rate can vary; new-employer rates are assigned by industry.
View 2026 UI rates →Minnesota generally requires workers’ compensation coverage for employees without a minimum employee-count threshold. Even one part-time employee can create a coverage obligation unless an exception applies.
View coverage guidance →STATE PAYROLL OVERVIEW
Minnesota’s earnings-statement rule is unusually specific about both the wage calculation and the employer’s identity. At the end of each pay period, the statement must identify the employee, rate or rates of pay and their basis, hours worked unless the employee is exempt from the hours requirement, gross pay, deductions, net pay, the pay-period end date, and the employer’s legal or operating name, physical or mailing address, and telephone number.
Minnesota also layers earned sick and safe time information into the recurring payroll experience. At the end of each pay period, employees must be able to see their total ESST hours available and the total ESST hours used during that pay period. The employer can provide that information on the earnings statement or through an accessible electronic system, so the page should not incorrectly imply that ESST balances must always be printed directly on the pay stub.
Effective August 1, 2024, employers must retain copies of employee earnings statements for three years. That makes the pay statement itself an important part of the employer’s retained payroll record, not merely an employee-facing summary.
PAYROLL REQUIREMENTS CHECKLIST
Use this checklist to distinguish the information required on Minnesota’s earnings statement from the separate sick-and-safe-time, tax, unemployment, and workers’ compensation rules that support payroll.
Provide an earnings statement to the employee at the end of each pay period.
Include the employee’s name; rate or rates of pay and basis; hours worked unless exempt; gross pay; deductions; net pay; pay-period ending date; employer legal and operating name if different; physical address of the main office or principal place of business and mailing address if different; and employer telephone number.
At the end of each pay period, provide the employee’s total ESST hours available and total ESST hours used during that pay period. This information may be on the earnings statement or through another accessible electronic system that allows review and printing during regular working hours.
Apply current Minnesota withholding instructions, UI requirements, workers’ compensation rules, and any applicable local wage requirements separately from the earnings-statement format.
PAYROLL RECORDS IN PRACTICE
Minnesota allows employers to use electronic systems for required ESST information when employees can access the system during regular working hours to review and print the information. Keep the actual earnings-statement delivery method consistent with Minnesota law and the employer’s payroll process.
Employers must retain copies of employee earnings statements for three years from the time they are issued. Maintain the supporting time, wage, deduction, leave, withholding, and payment records necessary to substantiate the statement and related payroll obligations.
USE CURRENT MINNESOTA INSTRUCTIONS — NOT A GENERIC PERCENTAGE
Minnesota income-tax withholding depends on the employee’s wages, payroll frequency, withholding elections, and current Department of Revenue formulas. Use the current-year withholding instructions for the pay period rather than applying a flat percentage to every employee.
Use the current booklet for employer withholding calculations, tables, filing guidance, and payroll-period methods.
View 2026 instructions →Use the Department of Revenue employee-withholding resources for current forms and employee withholding information.
View withholding resources →LOCAL CONSIDERATIONS
Minnesota’s state earnings-statement rule applies statewide, but local minimum-wage requirements can change the rate used in payroll calculations. Employers should identify where covered work is performed and confirm local labor standards in addition to state rules.
A SOURCE-BACKED WORKFLOW
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OFFICIAL MINNESOTA SOURCES USED FOR THIS PAGE
Official earnings-statement fields, employer identity requirements, and three-year earnings-statement retention guidance.
Official guidance for ESST availability and usage information provided at the end of each pay period.
Current employer withholding methods and tax instructions.
Official 2026 UI wage base, base rate, experience-rate framework, and new-employer information.
Official coverage guidance for Minnesota employers.
RESEARCH & REVIEW
This page is built from primary Minnesota state and local government sources and is periodically reviewed against current agency guidance. We use official wage-payment rules, sick-and-safe-time guidance, tax instructions, unemployment resources, workers’ compensation guidance, and local labor standards whenever available.
FREQUENTLY ASKED QUESTIONS
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Prepare a Minnesota Pay Run, review the calculations and records before completion, and keep the applicable Minnesota sources with your payroll workflow.