Minnesota PFML is Live: Your employer guide

Minnesota’s Paid Family and Medical Leave (PFML) program just became active on January 1st. Is your organization prepared to navigate these changes in the new year?

Our recent webinar, Minnesota PFML is Live! Is your organization ready?, walked through key insights that employers should know to help ensure compliance with the new legislation while supporting employee needs during their leaves of absence.

Here are some of the most important takeaways from the discussion:

Leave types and durations explained

Minnesota PFML offers support for employees facing medical or family leave needs. Employers should understand the structure and eligibility to help ensure compliance and smooth administration.

Employees can take up to 12 weeks of medical leave and 12 weeks of family leave per benefit year, with a combined maximum of 20 weeks.
Medical leave covers an employee’s own serious health condition.
Family leave includes bonding with a new child, caring for a family member, supporting military family members, and addressing safety concerns related to domestic abuse or similar situations.

What employers and employees need for claims

Filing a claim requires coordination between employers and employees. Being prepared with the right information can help streamline the process and avoid delays.

Employers must provide group plan details, tax ID, wage information, and eligibility verification.
Employees need to submit their personal identifying information, banking information for direct deposit, and documentation supporting their leave.
Both parties should keep records of prior leaves and communicate any changes promptly.

How to submit a claim

Employers should guide employees through the process to help ensure that all necessary steps are followed.

Employees with Guardian accounts can log in, select their group ID, and start a new claim online.
Those without accounts can register or use the online portal to submit claims.
Early claim submissions are allowed, but action is generally only taken once the leave begins.
Claim status can be tracked online, keeping everyone informed.

Special considerations for maternity and bonding leave

Maternity and bonding are common leave reasons, and employees should be proactive in discussing plans with employers. Understanding eligibility timelines is crucial.

Bonding leave can be taken within 12 months of welcoming a child, even if the child arrives in the previous year.
Examples of required documentation include birth certificates or proof of adoption/foster placement.
Employers should encourage early conversations about foreseeable leave needs.

Coordinating with other benefits and leave laws

Minnesota PFML interacts with other benefits, and employers must be aware of how these programs overlap to avoid compliance issues.

PFML may run concurrently with Short Term Disability (STD), workers’ compensation, and Family Medical Leave (FML).
STD and workers’ compensation benefits are typically reduced by the amount of PFML received.
FMLA and Minnesota PFML should run together when applicable.

Private plan tax treatment and reporting options

Understanding the tax implications of PFML benefits is essential for accurate reporting and payroll management.

Paid Medical Leave (PML) benefits are taxed as “sick pay,” may be subject to FICA, and reported on W-2s.
Paid Family Leave (PFL) benefits are not “sick pay,” not subject to FICA, and reported on 1099-MISC. Employees can elect to have federal income tax withheld from their PFL benefit upon request.
Employers can choose from three tax service options for PML, ranging from self-reporting to full-service options with Guardian.

Billing and premiums made simple

Billing for Minnesota PFML is handled quarterly, and employers should be ready to report wages and manage payments efficiently.

Each Federal Employer Identification Number (FEIN) is billed separately, and premiums are based on wages earned, capped at $185,000 per employee per year.
Employers receive a premium report 15 days before payment is due and can pay online, ACH, wire transfer, or by check. The completed premium report must be returned to Guardian when payment is made.
Multi-state employers will receive separate bills for each state’s PFML plan.

Employer responsibilities and next steps

Staying compliant includes keeping up with reporting, communication, and employee protections. Employers should review these obligations regularly.

Submit quarterly wage reports to Minnesota through your unemployment insurance account.
Display required PFML posters at all workplaces.
Provide employee notice within 30 days of hire (notice was to be provided to current Minnesota employees by December 1, 2025).
Beginning 1/1/26 and going forward, continue payroll deductions for employee contributions (max 0.44% of wages, capped at $185,000).
Ensure job protection and anti-retaliation measures and maintain health care coverage for employees on leave.
Provide wage and other information needed for claim adjudication.

Key takeaways for employers

Minnesota PFML brings new opportunities and responsibilities for employers. By preparing now, updating policies, and communicating clearly with employees — and staying informed about ongoing requirements and deadlines — you can help ensure a smooth transition and compliance with state requirements. For more details, view the full webinar here.