Minnesota (MN) – 2021


Minimum Wage – If annual gross volume of sales are $500,000 or more:MinnesotaFederal
Minimum Wage$10.08$7.25
Minimum Cash Wage (Tipped Employee)$10.08$2.13
Maximum Tip CreditNone$5.12
Youth Minimum Wage$8.21$4.25
State Income TaxMinnesotaFederal
Wage WithholdingTables
Supplemental Wage / Bonus Rate6.25%
Unemployment InsuranceMinnesotaFederal
Maximum 2020 Taxable Earnings (Increased from $34,000 in 2019)$35,000
Employee 2020 DeductionNone
Employer 2020 Tax Rates (Includes 0.1% Workforce Development Assessment)0.2 – 9.1%
Standard 2020 New Employer Rate (Plus 0.1% Workforce Development Assessment)Industry Average
Voluntary Contribution PermittedYes

Federal (FED) – 2021

Minimum WageFederal
Minimum Wage$7.25
Minimum Cash Wage (Tipped Employee)$2.13
Maximum Tip Credit$5.12
Youth Minimum Wage$4.25
Maximum Taxable EarningsNo Limit
Medicare Rate1.45%
Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)0.90%
Maximum Taxable Earnings (Increased from $137,700 in 2020)$142,800
Employee / Employer Tax Rate (Unchanged from 2019)6.20%
Maximum Taxable Earnings$7,000
Percent of Taxable Wages6.00%
Maximum Credit5.40%
Normal Net Tax0.60%
Health Savings AccountsFederal
Self-Only Contribution Limit (Employee / Employer) (Increased from $3,550 in 2020)$3,600
Family Contribution Limit (Employee / Employer) (Increased from $7,100 in 2020)$7,200
Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2020)$1,000
Pension PlansFederal
Contribution Limit – 401(k) & 403(b) plans (Unchanged from 2020)$19,500
Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Increase from 6,000 in 2019)$6,500
Supplemental Wage / Bonus RatesFederal
Flat Rate Withholding Method (Unchanged from 2020)22%
Pay over $1 Million (Unchanged from 2020)37%

Minnesota State Resources

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