Minnesota (MN) Paid Leave setup

Setting up Minnesota Paid Leave in Sage 50 Accounting.

General information

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 more than 30 employees

For the tax year 2026, the total Minnesota Paid Family Leave premium rate for companies with greater than 30 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. Use the "Special 4" field under Addl Withholding to record the Employee premium rate.
4. Use the "Special 5" field under Addl Withholding to record the Employer premium rate.
   • If using the default Employer and Employee rates, enter a value of 00 in both the "Special 4" and "Special 5" fields under Addl Withholding.
   • If using different contribution amounts, enter the Employee contribution percentage in the "Special 4" field under Addl Withholding. Enter the Employer contribution percentage in the "Special 5" field.

 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. For the Employee premium rate, enter the percentage value in the "Special 4" field under Addl Withholding.
4. For the Employer premium rate, enter the percentage value in the "Special 5" field under Addl Withholding.

 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. 

Employee 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.

Employer 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.