Question 1

Is PEO registration required in Minnesota?

Accepted Answer

Yes. An employee leasing firm must register with the Minnesota Department of Commerce before it can register with the unemployment insurance program. The state also requires a separate UI employer account for every client under Minnesota Statutes section 268.046.

Question 2

Does Minnesota require PEOs to post a surety bond?

Accepted Answer

No. The NAPEO licensing chart lists no bonding requirement for Minnesota PEO registrations.

Question 3

What is the SUI taxable wage base in Minnesota?

Accepted Answer

The 2026 SUI taxable wage base in Minnesota is $44,000, up from $43,000 in 2025. New employers are assigned an industry-average rate, with a common planning figure of roughly 1%, while experience-rated accounts span 0.4% to 8.9%.

Question 4

What paid leave obligations apply in Minnesota?

Accepted Answer

Minnesota Paid Leave began paying benefits in January 2026, and its premiums are collected through the unemployment insurance accounts themselves. Account types are joint Unemployment/Paid Leave accounts or Paid-Leave-only accounts depending on the workforce, so the account a client opens determines which levies ride on its wage reports.

Question 5

What is the minimum wage in Minnesota?

Accepted Answer

Minnesota's minimum wage for 2026 is $11.41 per hour, indexed annually. The state also runs a paid sick and safe time law that requires most employers to provide earned sick leave.

Question 6

Does Minnesota have an exclusive workers' compensation fund?

Accepted Answer

No. There is no exclusive workers' compensation fund in Minnesota — coverage comes from private carriers.

Minnesota PEO FAQs: Registration, Compliance, and Costs

Frequently Asked Questions