Financial Things Considered: More on Minnesota Paid Leave

I'm Tammy Dahlvang, and I serve as the treasurer of the Southeastern Minnesota Synod!

Here are the steps you’ll need to take for the new Minnesota Paid Family & Medical Leave program. I’ve included the extra details that apply to churches:

1. Register your account (even though you don’t have Unemployment Insurance) through the UI Employer website: uimn.org/employers
   —Choose “Paid-Leave-Only Account” when asked.
2. Gather your information before registering: Church legal name, FEIN, MN Withholding account number, incorporation date, 501(c)(3) exemption letter, and names/addresses of officers.
3. Designate a Paid Leave Administrator (someone like you or the treasurer). This person will manage leave requests in the system. After designation, they’ll create their own Paid Leave account.
4. Start wage reporting in the Paid Leave system when required. (Employers need to report wages before premiums begin, so the state has accurate records.)
5. Post the required employee notice in your workplace by December 1, 2025.
6. Begin payroll deductions on January 1, 2026 (0.88% of wages, typically split 50/50 with employees). Because your payroll is small, your share will be lower. Details: mn.gov/deed/paidleave/employers/premiums
7. Submit your first premium payment by April 30, 2026.
8. About 1099 workers: Independent contractors are not covered. Only W-2 employees are included. Pastors are W-2 employees for MN Paid Leave purposes, as are part-time employees earning more than $3,700 per year.

If you get stuck at any step, you can call the MN Paid Leave Employer Support line between 9:00 AM and 4:00 PM at 651-539-4463 (or toll-free at 1-877-898-9090). They are very helpful and will either answer your questions directly or connect you with someone who can.