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Minnesota Payroll

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

Large employers covered by Minnesota's minimum wage law must pay employees at least $6.15 an hour and small employers must pay employees at least $5.25 an hour. Large employers are those whose annual gross volume of sales or business is at least $625,000. 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

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)	27,000
New Employer Rate (% Taxable Wages)	2.91 - 9.4
Employee Tax Rate (% Taxable Wages)	None
Period Effective	Calendar Year 2011

Minnesota Payroll Links

Minnesota Department of Revenue >> 600 N. Robert Street St. Paul, Minnesota 55101 651.282.9999	Minnesota Department of Labor and Industry >> 443 Lafayette Road N. St. Paul, Minnesota 5155 800.342.5354

Minnesota Department of Employment and Economic Development - Unemployment Insurance Program >> PO Box 75576 St. Paul, Minnesota 55175 651.296.6141	Minnesota Laws >>

Minnesota State Regulations >>	Tax Forms and Publications >>

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 Dakora are exempted from withholding and tax filing requirements for those states.

Minnesota Benefits

Minnesota Voting Rights:
Employer Right to Schedule Voting Hours	Yes
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 Payroll Calculator

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Follow the link to learn more about calculating payroll tax where there are definitions and further explanation of how to calculate Minnesota payroll taxes. If you are tired of doing it yourself we encourage you to call 877.954.7873 to speak with a payroll expert or just get a free personalized payroll service quote.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.