How Much Does It Cost to Hire an Employee in Minnesota? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Minnesota.
Total Cost at $60K Salary
$65,958
Cost multiplier: 1.1x
SUTA Rate (Mid)
1.0%
Wage base: $42,000
Workers' Comp Rate
1.18%
Has state income tax
Minnesota Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.1% – 9.0% |
| SUTA New Employer Rate (typical) | 1.0% |
| SUTA Wage Base | $42,000 |
| Workers' Compensation (avg) | 1.18% of payroll |
| State Income Tax | Yes |
| Paid Family Leave (employer share) | 0.33% |
Example Employer Costs in Minnesota
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (MN) | $400 | $420 | $420 |
| Workers' Comp | $472 | $708 | $944 |
| State Programs (DI/PFL) | $132 | $198 | $264 |
| Total Employer Taxes | $4,106 | $5,958 | $7,790 |
| Total Cost (salary + taxes) | $44,106 (1.1x) | $65,958 (1.1x) | $87,790 (1.1x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
How Minnesota Compares
Minnesota's typical SUTA rate of 1.0% is below the national average of ~1.70%. However, with a wage base of $42,000, which is well above the federal minimum of $7,000, the effective SUTA cost per employee can be significant.
Workers' compensation at 1.18% of payroll is below the national average of ~1.20%.
Employee Costs in Other States
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