Minnesota (MN) Paid Leave setup

Setting up Minnesota Paid Leave in Sage 50 Accounting.

1. Employee fields setup

1. In the product, from the Maintain menu, select Payroll, Employee Defaults.
2. The Employee Defaults window appears. Click the Employee Fields tab.
3. In the next available/blank field, place your cursor in the Field Name field and type MNPFLE.
   • You can enter another name, if desired, within the allowed character limitations.
4. Select a General Ledger Account to associate with the new deduction.
5. Place a mark in the checkbox under the Calc column.
6. Under the Formula column, place your cursor in the field. Click the magnifying glass and select MNPFL EE from the drop-down list.
7. Click the button under the Adjust column.
8. The Calculate Adjusted Gross window appears. On the left, place a mark in the checkbox under the Use column in the Gross field.
9. Click OK.
10. On the Employee Defaults window, click OK.

2. Employer fields setup

1. In the product, from the Maintain menu, select Payroll, Employee Defaults.
2. The Employee Defaults window appears. Click the Company Fields tab.
3. In the next available/blank field, place your cursor in the Field Name field and type MNPFLR.
   • You can enter another name, if desired, within the allowed character limitations.
4. Select a General Ledger Account to associate with the new deduction.
5. Place a mark in the checkbox under the Calc column.
6. Under the Formula column, place your cursor in the field. Click the magnifying glass and select MNPFL ER from the drop-down list.
7. Click the button under the Adjust column.
8. The Calculate Adjusted Gross window appears. On the left, place a mark in the checkbox under the Use column in the Gross field.
9. Click OK.
10. On the Employee Defaults window, click OK.

 NOTE: Ensure that the Special 4 and Special 5 fields on the employee record contain the correct values in the Addl Withholding column. 

3. Withholding Info setup

There are two scenarios: Companies with more than 30 employees, and companies with fewer than 30 employees. For details of the Minnesota Paid Family Leave plan, go to: https://pl.mn.gov/

Scenario 1: Companies with 30 or more employees

For the tax year 2026, the total Minnesota Paid Family Leave premium rate for companies with 30 or more employees is 0.88% of wages. 

The default Employer and Employee contributions are based on the employer and employee splitting the premium and contributing evenly at 0.44% each.

1. Go to Maintain, Employees/Sales Reps and select the Employee ID.
2. Select the Withholding Info tab.
3. At the bottom of the screen, next to Special 4, leave the Addl Withholding field at 0.00 if you’re using the default rate of 0.44%. Otherwise, enter the desired percentage in that field.
4. Next to Special 5, leave the Addl Withholding rate as 0.00 if you’re using the default rate of 0.44%. Otherwise, enter the desired percentage in that field.
   • If you enter non-default rates, the combined total of the Special 4 and Special 5 Addl Withholding fields should be 0.88.

 NOTE: If the Employer chooses to cover the entire MN PFL premium: On the Employee record, select the Employee Fields tab and uncheck Use Defaults and Calc on the MNPFLE row. 

Scenario 2: Companies with fewer than 30 employees

For the tax year 2026, companies with fewer than 30 employees pay a reduced premium rate of 0.66% of wages.

1. Go to Maintain, Employees/Sales Reps and select the Employee ID.
2. Select the Withholding Info tab.
3. At the bottom of the screen, use the Addl Withholding field for Special 4 to record the Employee premium rate. The standard rate is 0.33.
4. Use the Addl Withholding field for Special 5 to record the Employer premium rate. The standard rate is 0.33.
   • If you choose to split the premium differently between employer and employer, just ensure that the combined Special 4 and Special 5 Addl Withholding fields total to 0.66. 

 NOTE: If the Employer chooses to cover the entire MN PFL premium: On the Employee record, select the Employee Fields tab and uncheck Use Defaults and Calc on the MNPFLE row.