The Minnesota Paid Family and Medical Leave (PFML) program is moving into its next critical phase. While reporting and notice requirements have been rolling out over the past two years, a major financial milestone is approaching: the first quarterly premium deposits.
By April 30, 2026, all covered employers must deposit their initial premium contributions with the Minnesota Department of Employment and Economic Development (DEED). These payments cover the first calendar quarter of 2026 (wages earned between January 1 and March 31).
Understanding the Contribution Schedule
Following this initial April deadline, contributions must be deposited quarterly into the Family and Medical Benefit Insurance Account. Payments are due on or before the last day of the month following the end of each calendar quarter:
| Quarter | Coverage Period | Deposit Due Date |
| 1st Quarter | January 1 – March 31 | April 30 |
| 2nd Quarter | April 1 – June 30 | July 31 |
| 3rd Quarter | July 1 – September 30 | October 31 |
| 4th Quarter | October 1 – December 31 | January 31 |
Key Program Milestones
The PFML program has been implemented in stages to allow employers to adjust their payroll and human resources practices. Below is a timeline of the requirements now in effect:
- Quarterly Wage Reporting (Began October 31, 2024): Employers were required to begin filing quarterly wage detail reports to DEED to set the foundation for benefit calculations.
- Anti-retaliation Protections (Effective November 1, 2025): Requirements prohibiting retaliation against employees for requesting or taking leave became enforceable.
- Notice Requirements (Effective December 1, 2025): Employers must have posted the required workplace poster and provided individual written notices to employees.
- Benefit Availability and Withholding (Started January 1, 2026): Benefits became available to eligible employees, and employers were required to begin making and withholding premium contributions.
Premium Rates for 2026
For the 2026 calendar year, the standard premium rate is 0.88 percent of covered wages. Employers are responsible for at least 50 percent of this premium but may choose to withhold up to 0.44 percent from employee wages. Organizations with 30 or fewer employees may qualify for a reduced employer premium rate of 0.66 percent.
Next Steps for Employers
To remain compliant with the latest PFML requirements, employers should take the following actions:
- Finalize First Quarter Calculations: Ensure that the 0.88 percent premium (or 0.66 percent for small employers) has been correctly calculated based on all covered wages paid between January 1 and March 31, 2026.
- Submit Deposits by April 30: Access the DEED online portal to remit the first quarter’s total premium contribution.
- Audit Pay Statements: Verify that pay statements accurately reflect PFML withholdings as required by state law.
- Review Recordkeeping: Ensure that PFML-related records, including employee acknowledgments of notices, are maintained for the required duration (typically six years for state plan records).
- Consult with Experts: Reach out to your benefits advisor or legal counsel to ensure your internal leave policies align with the now-active PFML benefit rights.
