Struggling to keep up with payroll and HR in Minnesota? From local ordinances to statewide labor laws, we’ll help you save time and focus on growing your business.
Payroll services in Minnesota
How Paylocity helps Minnesota employers
Payroll that gets it done
- Seamless automation: Eliminate repetitive tasks with automated workflows that boost accuracy and save time.
- Smart safeguards: Built-in audits and integrations flag issues before they become errors.
- Transparent calculations: Easily manage overtime, bonuses, and local tax changes, even across overlapping jurisdictions.
Your extra HR team member
- Automated workflows: Use ready-made templates for common tasks or build custom processes that fit your business.
- One employee record: A single source of truth for employee data keeps everything organized and compliant.
- Effortless Time & Labor: Schedule quickly, track clock-ins and meal breaks, and standardize time-off requests.
Compliance made simple
- Compliance dashboard: Get a clear view of requirements with updated forms and expert HR support.
- Built-in data access: Quickly find work authorizations, EEO/FLSA data, pay records, certifications, and industry updates.
- Always up-to-date forms: Access the latest state and federal forms right from the platform.
Challenges facing employers in Minnesota
Minnesota maintains a complex compliance landscape that requires a careful balance between federal standards and state mandates.
As an employer, you must grapple with:
- Stricter employment regulations ranging from pay transparency to paid family and medical leave.
- Higher state and local minimum wage rates.
- Additional safety and health requirements under the Minnesota State OSHA plan.
Minnesota payroll fast facts
Minimum wage
$11.41
State income tax rate
5.35% - 9.85%
Right to work laws
None
State unemployment tax rate
- 1.00% - 8.90% (new employers)
- 0.00% - 8.90% (experienced employers)
Last updated: February 23, 2026
Minnesota tax and compliance resources
FAQs about paying employees in Minnesota
Does Minnesota have a state income tax?
Yes, Minnesota’s income tax is progressive, ranging from 5.35% - 9.85% based on the taxpayer's level of income.
Is Minnesota a right to work state?
No, Minnesota is not a right to work state, but it can pass right to work laws in the future if it wishes to do so.
What are the Minnesota final pay laws?
In Minnesota, employees who voluntarily resign from a job must receive their final paycheck by the next regular payday, unless it’s less than five days from the employee’s last day. In such cases, the final paycheck is due by the following regular payday, but not more than 20 days after termination.
Are there Minnesota work break laws?
Yes, under state law, employers must provide employees with at least a 15-minute paid break or enough time to use the nearest convenient restroom, whichever is longer. Employers must also allow an employee working at least six consecutive hours an unpaid meal break of at least 30 minutes.
More than just payroll
Why employers in Minnesota choose Paylocity
Historic country club delivers modern employee experience
Minnesota's historic Interlachen Country Club leveraged Paylocity's tools to deliver a modern employee experience.
