MN Paid leave exemption

Forum|Forum|8 hours ago
July 14, 2026
1 reply
6 views

Minnesota established the Paid Leave program in the beginning of 2026. Our company elected to use a private insurance for paid leave and received an exemption fromthe State of Minnesota. I spoke with a Quickbooks representative at the beginning of the year and was told that they are not set up for the private insurance, but to use the state calculations for payroll.

Now, Quickbooks is telling me that if I don’t allow them to handle the state unemployment and paid leave by a certain date, my payroll will be locked.

Question: How am I supposed to handle this one? Has Quickbooks become able to handle the private insurance?

QuickBooks Online

JayAnne_C

QuickBooks Team

You can set up your Minnesota’s Paid Family and Medical Leave (PMFL) exemption in QuickBooks by toggling Company is exempt from contribution in the Minnesota tax section of your Payroll settings. Here’s how:

Go to the Gear icon and select Payroll settings.
Choose the Minnesota tax and fill out the required fields.
On the Minnesota Paid Family and Medical Leave Tax (PFML) section, click Start.
When selecting the coverage, tick the Company is exempt from contribution, then Save the changes.

If you'd like to deduct the employee portion of premiums from paychecks, you can use an "Other" deduction item in payroll. Please note that employer contributions can’t be managed through QuickBooks. You'll need to contact your private insurance provider directly, as they handle that part.

Once the exemption is set, completing the automated-tax enrollment for your standard Minnesota Unemployment Insurance (UI/SUI) and state withholding will prevent your payroll from being blocked.

For more details on managing your insurance plan, visit this article: Set up and manage payroll items for your insurance benefit plan.

Let us know if you have any further questions, and we'll be here to help anytime.

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