Minnesota PFML Multi-State & Remote Worker FAQ
Minnesota PFML coverage is based on where work is performed, not where the employee lives or where the company is headquartered. Employees are covered if they perform at least 50% of their work in Minnesota. Out-of-state employers with even one eligible Minnesota worker must register at uimn.org—no Minnesota business filing required.
Work location determines coverage, not home address
Must register if ANY employee works 50%+ in MN
One state per employee—localization prevents overlap
The 50% Work Location Rule: Where Work Is Performed Determines Coverage
The Core Rule
Minnesota PFML coverage is determined by where the work is performed, not:
- NOT where the employee lives
- NOT where the company is headquartered
- NOT where the employee was hired
- YES: Where 50% or more of work hours are performed
How to Calculate 50 Percent Work Time for MN PFML
Calculate the percentage of total work hours performed in Minnesota over a representative period (typically quarterly):
Include in Minnesota Hours
- • Time at Minnesota office or worksite
- • Time working from Minnesota home office
- • Travel time while in Minnesota
- • Client meetings in Minnesota
- • Training or conferences in Minnesota
Exclude from Minnesota Hours
- • Time at out-of-state offices
- • Time working from out-of-state home
- • Travel time in other states
- • Client meetings outside Minnesota
- • Remote work from vacation locations
Documentation Tip
Keep records of your 50% calculations for each employee. In an audit, you'll need to prove how you determined which state's PFML applies. Time tracking systems, badge swipes, and calendar data can support your calculations.
MN PFML Coverage Scenarios: Quick Reference
| Scenario | Covered? | Why |
|---|---|---|
| Employee lives in Wisconsin, works 60% in Minnesota office | Yes | 50%+ of work performed in Minnesota |
| Employee lives in Minnesota, works 100% remote for California company | Yes | Work performed in Minnesota, employer location doesn't matter |
| Employee lives in Wisconsin, works 60% from WI home, 40% in MN office | No | Less than 50% of work in Minnesota |
| Traveling salesperson lives in Minnesota, works 30% MN, 30% IA, 40% WI | Yes | Tie-breaker: Lives in MN and performs some work there |
| Employee lives in Iowa, works 45% MN, 55% remotely from Iowa | No | Less than 50% in Minnesota, doesn't live in MN |
| Remote worker in Minneapolis for NYC startup, 100% work from home | Yes | 100% of work performed in Minnesota |
MN PFML Out-of-State Employer Registration Requirements
Key Requirement
If you have even ONE employee who performs 50%+ of their work in Minnesota, you must register for MN PFML—even if your company has no physical presence in the state.
What You DO Need
- Minnesota UI portal account at uimn.org
- Federal EIN (Employer Identification Number)
- Wage data for Minnesota employees
- Quarterly premium payments
What You DON'T Need
- Minnesota Secretary of State filing
- Physical office in Minnesota
- Minnesota business license
- Registered agent in Minnesota
Register at UIMN.org
The Minnesota Unemployment Insurance portal handles both UI and PFML registration. Out-of-state employers can register online without any Minnesota business filings.
Go to UIMN.orgMulti-State Payroll: Avoiding Dual-State PFML Premiums
The Good News
The 50% localization rule prevents double coverage. An employee can only be covered by one state's PFML program at a time. You won't pay premiums to both Minnesota and another state for the same employee.
Multi-State Payroll Tax Setup for Minnesota Paid Leave 2026
Identify Covered Employees
Calculate which employees meet Minnesota's 50% work threshold. Document your methodology.
Register Only for Covered Employees
At uimn.org, report only employees who work 50%+ in Minnesota. Don't include out-of-state workers.
Configure Payroll System
Set up MN PFML (0.88%) withholding only for covered employees. Most major payroll providers (ADP, Paychex, Gusto) have multi-state PFML modules.
Report & Pay Quarterly
Submit quarterly wage reports and premium payments. First payment due April 30, 2026.
States with Paid Family Leave Programs (2026)
If you have employees in multiple states with PFML programs, apply the 50% localization test to each employee individually:
Note: Each state has different rules, rates, and effective dates. Minnesota's program began January 1, 2026.
The Localization Test for Minnesota Paid Family Leave
Minnesota uses a three-tier test to determine which state's PFML law applies to each employee:
Test 1: Primary Work Location (Most Common)
Where does the employee perform 50% or more of their work? If any single state has 50%+, that state's PFML applies. This covers most employees.
Test 2: Tie-Breaker (Residence + Some Work)
If no state has 50%, where does the employee live AND perform some work? A traveling salesperson who lives in Minnesota and does 30% of work there would be covered by MN PFML.
Test 3: Base of Operations (Rare)
If Tests 1 and 2 don't apply, coverage is based on the employee's base of operations—where their work is directed from or where they report to. This is rarely needed.
Frequently Asked Questions: MN PFML Multi-State & Remote Workers
Are employees living in Wisconsin but working in Minnesota covered by MN PFML?
Yes, if they perform at least 50% of their work in Minnesota. MN PFML coverage is based on where work is performed, not where the employee lives. An employee living in Hudson, WI who works 60% in a St. Paul office is covered. But if they work 60% from home in Wisconsin and only 40% in Minnesota, they are NOT covered by MN PFML.
Does MN PFML cover remote workers living in Minnesota for a New York company?
Yes, if the remote worker performs at least 50% of their work in Minnesota. The employer's headquarters location doesn't matter. If someone lives in Minneapolis and works remotely for a NYC company, performing most of their work from their Minnesota home, they are covered by MN PFML and the NY employer must register with Minnesota.
What are the MN PFML out-of-state employer registration requirements?
Out-of-state employers with even ONE eligible employee working in Minnesota must register with the Minnesota Unemployment Insurance (UI) portal at uimn.org. You do NOT need a Minnesota Secretary of State filing or physical office in the state. Registration requires your federal EIN, business information, and Minnesota employee wage details.
How do I calculate the 50 percent work time for MN PFML eligibility?
Calculate the percentage of total work hours performed in Minnesota over a representative period (typically quarterly). Include: time at Minnesota worksites, time working from a Minnesota home office, and time traveling for work while in Minnesota. Exclude: time worked in other states, even if for a Minnesota employer. If Minnesota work is 50% or more, the employee is covered.
What is the localization test for Minnesota Paid Family Leave?
The localization test determines which state's PFML law applies. Minnesota uses a three-tier test: 1) Primary test: Where is 50%+ of work performed? 2) Tie-breaker: If no state has 50%, where does the employee live AND perform some work? 3) Base of operations: Where is the employee's work directed from? Most employees are covered under the first test.
How do I set up multi-state payroll tax for Minnesota Paid Leave in 2026?
For multi-state payroll: 1) Identify which employees meet Minnesota's 50% work threshold, 2) Register with MN UI portal for those employees only, 3) Configure your payroll system to withhold MN PFML (0.88%) only from covered employees' Minnesota wages, 4) Report and pay premiums quarterly. Most payroll providers (ADP, Paychex, Gusto) have multi-state PFML modules for 2026.
Does Minnesota PFML have reciprocity with other state paid leave programs?
No, Minnesota does not have formal reciprocity agreements with other states' paid leave programs. Each state's program operates independently. However, employees cannot be covered by multiple state PFML programs simultaneously for the same work. The 50% localization rule prevents 'double coverage.' Employers must track which state applies to each employee.
Can I avoid paying PFML premiums to two states for the same employee?
Yes, the localization rules prevent dual-state coverage. An employee can only be covered by one state's PFML program at a time based on where they perform 50%+ of their work. If an employee splits time between Minnesota and another PFML state, only the state where they work the majority of hours requires premium payments. Document your calculations to support compliance.
What if an employee doesn't work 50% in any single state?
If no state has 50% of work time (e.g., a traveling salesperson), Minnesota's tie-breaker rule applies: the employee is covered by MN PFML if they LIVE in Minnesota AND perform SOME work in the state. If they don't live in Minnesota, coverage defaults to their state of residence if that state has PFML, or their base of operations.
Do I need to register for MN PFML if my only Minnesota employees are remote workers?
Yes, absolutely. If you have employees who work remotely from Minnesota (even if your company has no physical presence in the state), you must register with the MN UI portal at uimn.org. The registration requirement is based on where work is performed, not where your business is located. Failure to register can result in penalties.
Need Help with Multi-State PFML Compliance?
Download our employer toolkit with compliance checklists, premium calculators, and employee notice templates—designed for multi-state employers.