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Did you know that employees covered under the Fair Labor Standards Act must be paid the federal minimum wage of $7.25 an hour instead of the state minimum wage of $6.15 an hour or $5.25 an hour for small employers?

• Minnesota Compensation
• Minnesota Payroll for Employers
• Minnesota Income Tax Withholding
• Minnesota Benefits
• Minnesota Links

Minnesota Compensation

Large employers covered by Minnesota's minimum wage law must pay employees at least $9.65 an hour and small employers must pay employees at least $7.87 an hour. Large employers are those whose annual gross volume of sales or business is at least $500,000. Employees covered under the Fair Labor Standards Act must receive the federal minimum wage of $7.25 per hour.

All employees are covered except for:

• salespersons with at least 80 percent of their sales made off their employers' premises;
• certain agricultural workers;
• cab drivers;
• those with qualifications and hours under the control of the U.S. Department of Transportation;
• seafarers; and
• members of religious orders.

Minnesota Payroll for Employers

Employers must pay wages at least once every 31 days on a regular payday designated in advance. Unless paid earlier, the wages earned during the first half of the first 31-day period become due on the first regular payday following the first day of work.

Minnesota Unemployment:

Taxable Wage Base ($000s):                        32,000

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New Employer Rate (% Taxable Wages)    1.54

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Employee Tax Rate (% Taxable Wages)     None

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Period Effective                                             Calendar Year 2018

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 Benefits

Minnesota Voting Rights:

Employer Right to Schedule Voting Hours         Yes

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Pay Deduction for Voting Time Leave                 Prohibited


Minnesota requires employers to allow employees sufficient time off to vote. The law does not specify the amount of leave time employees must be granted.

Minnesota Links