Minnesota Paid Family Medical Paid Leave

The same thing is happening to me. We are a small employer, and I was told to use 0.33% for the employer and 0.33% for the employee.  I spent an hour on the phone today with Intuit and was told it’s still in beta. 

Thanks for reaching out to the Community, CLRPC. I appreciate your detailed information.

Minnesota's Paid Family and Medical Leave (PFML) program is a new state-required tax that starts January 1, 2026. It gives employees paid time off for family and medical reasons. QuickBooks Payroll is currently being updated so you can set up and manage this tax for your covered employees. This program helps make sure your team has support when they need it most, and Intuit will be here to help you stay compliant.

Here's how to set up your PFML tax:
 

1. Use the Gear icon, then go to Payroll settings.
2. From Minnesota Tax, click your Pencil (Edit) icon.
3. Under Minnesota Paid Family and Medical Leave Tax (PFML) Leave, hit Start and specify the Minnesota full time employee count.
4. Indicate if you have a Paid Leave Only account number by choosing Yes or No.
5. Press Define Rates and enter your Policy name.
6. Pick an effective start date for the policy.
7. Enter your percentages for you and the employees.
8. Select Save, then Done.

Next, you'll need to add the policy to your employees.

If you're unsure of which percentages you should be entering  in step 7, I'd recommend working with a tax professional to help identify what amounts should be entered. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Please don't hesitate to send a reply if there's any questions. Have a wonderful Friday!

I was having the same issue with incorrect percentages being plugged in automatically by QB (desktop version).  However, I was able to set the correct percentages for each employee in the Employee Center. I now have the correct amounts being withheld, despite the incorrect percentage in the Payroll Item List - MN Paid Leave sections.  Here is the reply I received from QB support:

The .88% you see was pulled in via the payroll tax table update, but it appears to be incorrect. QuickBooks locks this field in the Payroll Item List to prevent manual overrides on state-managed tax items. Because this is a system-defined tax, the software expects you to handle specific splits, like your .66% and .44% rates, directly in each employee's profile. Using the Employee Center > State Taxes > Other method is the correct way to override that locked global default.