Cost of an employee in Minnesota
For a new employer in Minnesota, payroll taxes on a $50,000 salary come to about $4,087 a year (8.2% of wages), before state unemployment tax (new employers pay their industry average). Add workers' comp and benefits below to see the full cost.
Cost of an employee in Minnesota
Workers' comp rates depend on your job class and insurer; enter your quoted rate. Results are estimates for one full-year employee and exclude local taxes.
Rates used
- Social Security 6.2% up to $184,500; Medicare 1.45% (employer shares, 2026)
- FUTA 0.6% on the first $7,000
- Minnesota SUTA: industry-average rate for new employers on the first $44,000. Minnesota payroll taxes
- Minnesota Paid Leave: employer share 0.44%. Employers with 30 or fewer employees and an average wage at or below 150% of the state average pay 0.66%, at least a third of it from the employer.
Running payroll in Minnesota?
Sources
- US Department of Labor, Employment and Training Administration (Significant Provisions of State UI Laws, July 2026) · data as of July 1, 2026 · last checked October 9, 2026
- pl.mn.gov · data as of January 1, 2026 · last checked October 9, 2026
- Internal Revenue Service, Publication 15 (Circular E), 2026 · data as of January 1, 2026 · last checked October 9, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.