Employer Guidance for 2026

Beginning January 1, 2026, Minnesota will launch the new Paid Family & Medical Leave Act (PFMLA) program.  This change affects nearly every employer in the state, and Straight Arrow Bookkeeping is here to help you prepare early so your payroll, documentation, and compliance are handled correctly.

Minnesota's Paid Leave Program - What Your Business Needs to Know

Starting January 1, 2026, Minnesota employees will gain access to statewide paid leave benefits for medical, family, bonding, and caregiving needs.  To stay compliant, employers must make several updates to payroll, policies, and employee communication.

Straight Arrow Bookkeeping will guide you through every step.

Key Facts for Employers

Who Is Covered?

• Nearly all Minnesota employers
• Full-time, part-time, seasonal, and temporary employees

Employee Benefits

Employees may receive:

• Up to 12 weeks of paid medical leave
• Up to 12 weeks of paid family leave
• Up to 20 weeks total if they use both categories

Payroll Premiums

Effective in 2026:

• Total premium: 0.88% of wages for employers with 31+ employees, 0.66% of wages for employers with 30 or less employees
• Employers may deduct up to 0.44% from employees
• Straight Arrow Bookkeeping will ensure proper setup in payroll

Employer Responsibilities

• Set up a Paid Leave account through the state
• Report quarterly wages and remit premiums
• Provide notice to your employees about their rights under the Paid Leave program
• Obtain each employee's signed acknowledgement confirming they received this notice
• Store this acknowledgement permanently in the employee's personnel file
• Update your handbook and policies
• Post mandatory workplace posters

This signed notice requirement protects your business and proves you have provided legally required notifications.

Equivalent Private Plans

Employers may choose to submit an application for a private "equivalent plan."  Deadline to apply for plan approval for 2026: November 10, 2025

How Straight Arrow Bookkeeping Helps You Prepare

We handle the details so you stay compliant:

Payroll Setup

• Premium calculations
• Employee deductions
• Employer contribution setup
• Wage reporting requirements

Handbook & Policy Updates

• Leave policy wording
• Required employee notices
• Mandatory workplace postings
• Employee acknowledgment forms

What You Should Do Now

1. Review your current leave and PTO policies
2. Decide whether to use the state plan or explore a private equivalent plan
3. Coordinate with your payroll provider (or with us!)
4. Gather employee contact info for required 2025 notices
5. Schedule a policy-update session with Straight Arrow Bookkeeping

We're Here to Help You Stay Compliant

This law brings big changes, but Straight Arrow Bookkeeping makes the process simple, organized, and stress-free.  We will ensure everything is ready by January 1, 2026, including payroll adjusments, notices, acknowledgments, and required documentation.