1.45% - Medicare
Up To 3.4% - State Taxes
Minimum wage is $7.87 per hour.
Paid Time Off
The state law does not require official vacation time to be given to the employees. It depends on the agreement with the employer.
No official law requires the employer to give employees sick days. Depends on the prior agreement upon start of employment.
There are 10 official holidays, however private employers are not required to provide either time off or overtime pay on these days.
The state sales tax is 6.875%. However, can be up to 8.375% depending on local municipality.
Employer:contributes 5.5% of the total payroll per month for the employees pension funds.
Employee: contributes 5.5% of the monthly salary to pension fund.
In the US, both the employer and employee contribute 6.20% for social security.
Both the employer and employee contribute 1.45% to Medicare.
Minnesota follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason. Therefore at the time of termination, the employer must pay all the necessary wages up to the day of termination.
There is no official notice period, but general practice is 2 weeks.
Minnesota law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.