Cost to hire an employee in Minnesota
On top of a $50,000 salary, a Minnesota employer pays roughly $5,328 in payroll taxes and insurance before benefits, about 10.7% of wages.
Last verified November 2, 2026. Sources: mn.gov, payroll.org, content.govdelivery.com, oregon.gov.
What a Minnesota employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Minnesota unemployment (SUTA) | 1.4% new employer 0.5%–9.4% experienced | First $44,000 |
| Minnesota Paid Leave | 0.44% | Wages up to $185,000 |
| Workers' compensation | ~$1.25 per $100 | Varies by job class |
Base tax rate 0.4% (included). Workforce Development (Enhancement) Fee is about 0.1% (not included). An additional assessment may apply. Paid Leave starts in 2026 at 0.88%, split between employer and employee (separate program).
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,801 | 10.9% | $38,801 |
| $50,000 | $5,328 | 10.7% | $55,328 |
| $75,000 | $7,663 | 10.2% | $82,663 |
| $100,000 | $9,998 | 10% | $109,998 |
| $150,000 | $14,668 | 9.8% | $164,668 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Minnesota vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Minnesota | $44,000 | 1.4% | $5,328 |
| Iowa | $20,400 | 1% | $4,676 |
| North Dakota | $46,600 | 1% | $4,583 |
| South Dakota | $15,000 | 1.75% | $4,695 |
| Wisconsin | $14,000 | 3.05% | $5,004 |
Frequently asked questions
- How much does it cost to hire an employee in Minnesota?
- On a $50,000 salary, employer payroll taxes and insurance add about $5,328 (10.7%), before benefits, for a total of $55,328.
- What is the Minnesota SUTA rate for new employers?
- New employers generally pay 1.4% on the first $44,000 of each employee's wages. Experienced employers pay between 0.5% and 9.4%.
- Do Minnesota employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.