wage tax
Coverage of wage tax in the Nexus archive.
- Minnesota’s Paid Family Leave program paying out nearly $600M. Is a wage tax funding enough to keep it going?
Minnesota’s Paid Family Leave program has paid out $598 million in its first six months, with $344 million collected from a 0.88% wage tax split between employers and employees. The program serves 75,000 people, with 124,000 additional applications, and faces concerns about funding stability despite claims from State Sen. Alice Mann that balances will improve by the end of the quarter. Delays in processing applications have been reported, though success stories highlight the program’s benefits.
- Minnesota’s Paid Leave program is running short on funds — and your taxes could go up
Minnesota’s Paid Leave program faces a funding shortfall, with $598 million paid to 75,000 participants but only $344 million collected through a 0.88% wage tax. The Department of Employment and Economic Development (DEED) may raise the tax to 1.1% by 2027 to address the gap, sparking concerns from small businesses while others support the program’s benefits for employee retention.