Minnesota sets new-employer rates by industry. Default 1.696% = 1.00% industry rate (most non-construction industries; e.g. professional services 1.08%, admin/support 2.04%) + 0.40% base rate, plus the 14% additional assessment, plus the 0.10% workforce development fee. Construction can be much higher (up to 8.90% + base). Enter the rate on your notice if you have one.
Minimum wage: Minneapolis/St. Paul set higher local minimums.
2What this employee costs you
Frequently asked questions
How much does it cost to hire an employee in Minnesota?
A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $41,449 a year before benefits: employer payroll tax $2,864, FUTA $42, Minnesota unemployment $635 and typical workers' comp $468. That's $20.72 per hour worked.
What is the Minnesota SUTA rate for new employers in 2026?
1.696% on the first $44,000 of each employee's wages (U.S. DOL, January 2026). Minnesota sets new-employer rates by industry. Default 1.696% = 1.00% industry rate (most non-construction industries; e.g. professional services 1.08%, admin/support 2.04%) + 0.40% base rate, plus the 14% additional assessment, plus the 0.10% workforce development fee. Construction can be much higher (up to 8.90% + base). Enter the rate on your notice if you have one.
What is the Minnesota minimum wage in 2026?
$11.41 per hour. Minneapolis/St. Paul set higher local minimums.
How much is workers' comp in Minnesota?
The 2024 Oregon premium-rate study puts Minnesota's all-industry index rate at $1.25 per $100 of payroll (rank 17 of 51; national median $1.09). Your real rate depends on job class and claims history.
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