Minnesota Payroll Tax and Labor Laws

Get your Minnesota State Tax ID Number 

Click HERE to obtain State Tax ID  

Click HERE to obtain State Unemployment Tax ID  

Minnesota Wage and Hour Laws

Minimum Wage 

Minnesota minimum wage rates vary depending on the size of the employer’s revenues.  

• Large employers with annual gross revenues of $500,000 or more must pay at least $10.59 per hour  
• Small employers with annual gross revenues of less than $500,000 must pay at least $8.63 per hour  

For more information on Minnesota’s minimum wage rates, please click HERE.  

Please note that several cities in Minnesota have their own separate minimum wage rates which are higher than the state mandated rate and that minimum wage rates for all jurisdictions are subject to change. Employers should verify they meet current state, county, and local requirements.  

Overtime 

Minnesota’s overtime laws require employers to pay one and one-half times an employee’s regular rate of pay for hours worked in excess of 48 in a seven-day workweek. Covered employers must comply with the federal Fair Labor Standards Act’s requirement to pay a non-exempt employee overtime for all hours worked in excess of 40 in a workweek.  

For more information on Minnesota’s overtime laws, please click HERE.  

Pay Frequency 

Minnesota law requires employers to pay employees for all earned wages on a regularly, scheduled payday at least once every 31 days.  

Minnesota Unemployment

Taxable Wage Base ($000s):                                    $42,000  

New Employer Rate (% Taxable Wages):           1.0% - 9.0% (rates vary by industry)   

Minnesota Income Tax Withholding 

Minnesota requires employers to withhold income tax from the wages of residents and nonresidents.  

Every employer doing business in Minnesota must withhold state taxes from taxable wages paid to covered employees.  

Minnesota has reciprocal agreements with Michigan and North Dakota, provided that nonresidents certify that they are eligible to receive tax credits for income taxes that will be paid to their state of residence. Minnesota residents working in Michigan and North Dakota are exempted from withholding and tax filing requirements for those states.  

Minnesota State Resources 

Minnesota Department of Revenue  

Minnesota Department of Labor and Industry  

Minnesota Unemployment Insurance  

Minnesota SUI Rate  

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.  

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.  

Revised 1/1/2024