Source: https://mn.gov/uimn/employers/paid-leave/small-employer-premiums.jsp
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Small employer premium rate

Rate reductions for small employers

Your Paid Leave premium rate is calculated annually. If your business meets certain statutory requirements, you will automatically be assigned the reduced small employer premium rate on your annual Paid Leave Premium Rate Notice. 

Your total Paid Leave premium rate will be used to calculate the amount in Paid Leave premiums you need to pay based on your quarterly taxable wages.

  ----------------------- --------------------
  Employer type           Total premium rate
  Regular employer rate   0.88%
  Small employer rate     0.66%
  ----------------------- --------------------

  : Table showing regular and small employer rates {.align-center width="auto" border="2"}

Employers can learn more about Paid Leave premium rates, including withholding requirements, by visiting Premium rate and contributions / Minnesota Paid Leave.

Calculating potential qualification for the small employer premium rate

There are two requirements under Minnesota law to be automatically assigned the small employer premium rate:

- You must have 30 or fewer employees 
- Your average employee wage must be less than 150 percent of the statewide average annual wage.

-  How we calculate whether you had 30 or fewer employees

  To calculate whether you had 30 or fewer employees, we review your wage detail reports for the four-quarter period that ended September 30 of the previous year.

  - Quarters with more than 30 wage records reported: If you reported more than 30 wage records during any calendar quarter during the review period, you will not be automatically assigned the small employer premium rate. 
  - Missing wage detail reports: If you have an overdue wage detail report, you will not be automatically assigned the small employer premium rate. 
  - Employers with multiple accounts under the same FEIN: For employers who have a Joint UI/Paid Leave account as well as a Paid Leave-ONLY account under the same FEIN, we will review your combined employee count. If your combined count of wage records exceeds 30 records during any calendar quarter during the review period, you will not be automatically assigned the small employer premium rate.

-  How we calculate your average employee wage

  To calculate whether your average employee wage is less than 150 percent of the statewide average, we review your wage detail reports for the four-quarter period that ended September 30 of the previous year. Then we:

  1.  Determine the maximum amount of gross wages you reported for any calendar quarter. 
  2.  Determine the maximum number of wage records you reported for any calendar quarter. 
  3.  Divide your maximum gross wages by your maximum wage record count to calculate your average annual wage. 
  4.  Divide your average annual wage by four to calculate your average quarterly wage.

  Then, we calculate whether your average quarterly wage exceeds 150 percent of the statewide average wage. The statewide average wage is recalculated annually based on statewide employment records.

  For employers who have a Joint UI/Paid Leave account as well as a Paid Leave-ONLY account under the same FEIN, we will review your average wage across both accounts to determine whether you should be automatically assigned the small employer premium rate.

-  Requesting a review of your Paid Leave premium rate

  If we do not automatically assign the small employer premium rate to your account, and you think you qualify based on the requirements above, you can follow the instructions on your determination to file an appeal. More information on how to appeal can be found on the Paid Leave website: https://pl.mn.gov/contact/appeals

-  If you have questions on your premium rate

  If you believe your premium rate is incorrect or have questions about your premium rate, contact Paid Leave for assistance. To reach the Paid Leave Contact Center by phone, call 651-556-7777 or 844-556-0444 (toll-free). To reach the Paid Leave Contact Center by email, contact them at paidleave@state.mn.us.
