Minnesota employer payroll tax calculator 2026
Hiring in Minnesota? New Minnesota employers pay 1.696% state unemployment tax on the first $44,000 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $5,510 a year in employer payroll taxes — $878.24 of it to Minnesota.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (1.696% on $44,000.00) | $746.24 |
| Minnesota Paid Leave, employer share (0.22% on $60,000.00) | $132.00 |
| Employer payroll taxes | $5,510.24 |
| Total cost before benefits | $65,510.24 |
Per two-week payroll: $2,519.62. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Minnesota unemployment tax (SUTA) for new employers
New employers pay their industry's average rate (1.00% for most non-construction industries; construction 1.98%–8.90%) plus the base rate, a 14% additional assessment and the workforce fee — about 1.70% in total for most. The rate is 1.00% industry rate + 0.40% base rate, plus the 14% additional assessment on both, plus 0.10% workforce development fee.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Minnesota on time and FUTA is 0.6% on the first $7,000. If Minnesota ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Minnesota payroll programs
- Minnesota Paid Leave, employer share: Premiums began January 1, 2026: 0.88% of wages, up to half deductible from employees. Small employers (30 or fewer employees whose average wage is at most 150% of the state average) pay 0.66%, of which up to 0.44% can come from employees.
What an employee costs in Minnesota
| Salary | Federal employer taxes | Minnesota employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $766.40 | $43,868.40 | 9.7% |
| $60,000 | $4,632.00 | $878.24 | $65,510.24 | 9.2% |
| $100,000 | $7,692.00 | $966.24 | $108,658.24 | 8.7% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Minnesota?
About $43,868 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $766.40 of Minnesota employer taxes, before benefits. That's $1,687.25 per two-week payroll.
How much does a $60,000 employee cost in Minnesota?
About $65,510 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $878.24 of Minnesota employer taxes, before benefits. That's $2,519.62 per two-week payroll.
How much does a $100,000 employee cost in Minnesota?
About $108,658 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $966.24 of Minnesota employer taxes, before benefits. That's $4,179.16 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $13,151 a year taken out of pay — federal income tax, their own Social Security and Medicare and Minnesota taxes — and takes home $46,849 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $5,510.24 of employer taxes. See the employee's side line by line in the Minnesota paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Minnesota figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Unemployment Insurance Minnesota — Tax rates — taxable wage base $44,000; base tax rate 0.40%; additional assessment 14.00% (checked 2026-09-28)
- Unemployment Insurance Minnesota — New employer tax rates — new employer rate is based on the average rate for the employer's industry
- Minn. Stat. 116L.20 — workforce development fee 0.10% on taxable wages
- Minnesota DEED — Paid Leave small employer premium rate — premium 0.88%; small employers 0.66%
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Minnesota SUTA rate for new employers?
1.696% in 2026 (1.00% industry rate + 0.40% base rate, plus the 14% additional assessment on both, plus 0.10% workforce development fee), on the first $44,000 of each employee's wages. New employers pay their industry's average rate (1.00% for most non-construction industries; construction 1.98%–8.90%) plus the base rate, a 14% additional assessment and the workforce fee — about 1.70% in total for most.
What is the Minnesota unemployment tax wage base for 2026?
$44,000 per employee per year.
How much does it cost to employ someone for $60,000 in Minnesota?
About $65,510 a year before benefits: $4,632.00 of federal employer taxes and $878.24 for Minnesota, at the new-employer rate with 5 employees.