Opt-in for Paid Leave coverage
Paid Leave covers most Minnesota employers and employees, but there are exceptions. Self-employed people are not covered by Paid Leave unless they request to be covered AND that request is approved. If your request is approved, you will:
- Pay in to the program through premiums, like everyone else participating in Paid Leave.
- Be eligible for payments while on leave, just like other workers.
- Be eligible for up to 12 weeks of Family Leave and 12 weeks of Medical Leave per year, or 20 weeks total if you qualify for both.
Eligibility requirements to opt-in for Paid Leave coverage
For your opt-in request to be approved, you must:
- Be a resident of Minnesota.
- Make at least 5.3 percent of the state’s average annual wage in net self-employment earnings.
- Meet one of the eligibility criteria from the table below.
- Submit an opt-in request following the instructions below.
| Business owner or LLC member? | Receive W2? | Reporting to IRS as a corporation? | Reporting to IRS as a sole proprietor? | Reporting to IRS as a partnership? | Independent contractor, freelancer, or gig worker? | Already covered by Paid Leave? | Can opt-in to Paid Leave? |
|---|---|---|---|---|---|---|---|
| Yes | Yes |  |
 |
||||
| Yes | No | Yes | |
|
|||
| Yes | No | Yes | |
|
|||
| Yes | No | Yes | |
|
|||
| No | No | Yes | |
|
Cost of opting in for Paid Leave coverage
If your request to opt-in to Paid Leave coverage is approved, Paid Leave will calculate the premium amount you owe. This will be 0.88 percent of your net earnings from the previous tax year, up to the Paid Leave taxable wage base. You can estimate your premium amount by using the Paid Leave premium calculator tool.
When you opt-in to Paid Leave you:
- will not submit quarterly wage detail reports, and
- must pay one year of premiums in advance.
Requesting to opt-in for Paid Leave coverage
Paid Leave accepts opt-in coverage requests on a rolling basis. Coverage will be effective at the beginning of the quarter following 1) approval of your request to opt-in, and 2) receipt of your annual premium payment. You can also choose to elect coverage beginning in a future quarter.
If you opt-in to Paid Leave you will need to create an employer account, complete a request to opt-in for Paid Leave coverage, and provide income documentation.
Opting in to Paid Leave coverage does NOT mean you will automatically be eligible for Paid Leave benefits. If you need to apply for benefits, visit the Paid Leave website. The Paid Leave Division will review your application and determine if you meet eligibility requirements.
After your request is submitted
Reviewing your opt-in request
The Paid Leave Division will review your request to opt-in to Paid Leave coverage. If your request is approved, you will receive an approval notification letter by mail with information about the effective date of your opt-in coverage. Coverage is typically effective the calendar quarter after approval was issued and your premium payment was made.
Note: An approval notification does not mean you are eligible for Paid Leave benefits – it simply means that your business is now covered by Paid Leave.
Pay Paid Leave premiums
If your request is approved, you will receive an approval notification in the mail that explains how much you owe in Paid Leave premiums. You must pay one year of premiums in advance. You have the option to authorize electronic payments directly from your bank account, submit an electronic check payment from your bank, or print a payment voucher to be included with a check.
WAIT for processing time - Do not submit wage detail reports while payment is pending.
Premium payments take approximately 10 calendar days to process. Once your premium payment has been processed, we will add wages to your account based on the income documentation you provided. Do not submit wage detail reports while your payment is pending.
To check if wages have been added to your employer account - Log in to your account, select Tax and Wage Detail Reporting, View submission history, and then Search.
- If the system shows "No records available", we are still processing your payment.
- If the system shows a submission, and you did not make the submission yourself, we have processed your payment and your opt-in request process is complete. You can now use these wages to apply for Paid Leave benefits through the Paid Leave website. If you apply for benefits, the Paid Leave Division will review your application and determine if you meet eligibility requirements.
Applying for Paid Leave benefits
Visit the Paid Leave website if you need to apply for Paid Leave benefits or have questions on applying.
Requesting continuation of Paid Leave coverage
You will be notified before your Paid Leave coverage ends for your first year of opting in. There are steps you need to take on an annual basis to continue your Paid Leave coverage for the following year.
Complete annual request to opt-in for Paid Leave coverage
Follow the instructions as outlined above to Request self-employed opt in.
Submit required documentation
You must provide required income documentation annually.
Pay Paid Leave premiums
If your request is approved, you will receive an approval notification in the mail that tells you your premium payment due.
Premiums are due for the full year in advance.