PEO services in Minnesota
A PEO helps Minnesota employers manage multi-state payroll, and benefits while staying compliant with Minnesota's rules. As of 2026, Minnesota's minimum wage is $11.41/hr and the state unemployment (SUTA) taxable wage base is $44,000. ONYX benchmarks the top PEOs against your current setup so Minnesota companies stop overpaying by 15–40%.
Minnesota employer snapshot (2026)
The structural facts that shape payroll and benefits cost in Minnesota. Verify current figures with the state agency before relying on any single number.
Indexed to inflation annually; $11.41 eff. 1-1-2026 (large-employer rate). Minneapolis/St. Paul set higher local rates.
Standard employer base; some states assign a higher base to max-rated employers.
Employers withhold state income tax.
Coverage available through private carriers and PEO programs.
The short answer
Employee-protective: statewide earned sick and safe time, a new state paid family and medical leave program (2026), and no tip credit; relatively high SUTA wage base.
Major metros we serve in Minnesota: Minneapolis, St. Paul, Rochester, Duluth.
Common Minnesota PEO questions
Can a PEO operate in Minnesota?
Yes. PEOs operate in Minnesota and handle Minnesota payroll tax, the $44,000 SUTA wage base, benefits, and workers' comp through competitive carriers. ONYX benchmarks the PEOs that operate in Minnesota against your current setup.
What is the 2026 minimum wage in Minnesota?
Minnesota's minimum wage is $11.41/hr as of 2026. Indexed to inflation annually; $11.41 eff. 1-1-2026 (large-employer rate). Minneapolis/St. Paul set higher local rates.
How much can a Minnesota company save with a PEO?
Most companies ONYX works with save 15–40% of total people cost by moving to a better-fit PEO. We model the exact savings for your Minnesota census for free in 3–5 business days.
PEO services in other states
Compare PEOs for your Minnesota team.
Get a free, no-pressure PEO audit. We'll compare your current setup against the top PEOs and show you the savings in 3–5 business days.