/
Setting up Minnesota Paid Leave Tax Types MN-PFL, MN-PML

Setting up Minnesota Paid Leave Tax Types MN-PFL, MN-PML

Issue/Symptom/Question

How do I set up Minnesota Paid Family and Medical Leave (MN-PFL, MN-PML)?

Applies To

PENTA for Windows

Payroll > Setup > Taxes > Payroll Tax Maintenance

Resolution/Fix/Answer

These new tax types will be available with the 2025 EOY Tax Kit.

Minnesota Paid Family Leave and Paid Medical Leave are state mandated taxes on employers and employees up to an annual limit. For details please visit Minnesota Paid Leave | Paid Leave

There are two tax types because the Minnesota Paid Leave website indicates there may be a need to report paid family leave and paid medical leave separately:

image-20260112-204935.png

In order for PENTA to calculate the tax correctly and not have any errors during payroll processing, the MN-PFL and MN-PML taxes need to be set up:

  • Navigate to the Payroll Tax Maintenance window and query Tax Types MN-PFL and MN-PML

  • Review the General tab according to the tax regulation - see MN-PFL example below:

image-20251110-151626.png

Update the Rates tab

  • State/Province will be MN

  • Earnings limit and rates must be set. You need to look up the limit and rates and set appropriately. PENTA does not maintain the limit and rates. 

image-20251110-152403.png
image-20251110-152145.png

Update the Accrual and Expense Accounts tab with the appropriate information.

Optionally, in the following windows set up taxability rules for Tax Types MN-PFL and MN-PML:

  • Direct Burden Rules

  • Master Deductions

  • Master Reimbursements

  • Other Compensation Information

  • Payroll Classes

  • Employee Payroll Information 

For MN-PFL and MN-PML reporting, use this report:

  • Report Code OTHSTTAXEMPEMR (generates Other State Taxes - Emp / Emr report)