TrueHireCost

True Cost of Hiring Calculator

Calculate Hiring Costs in Minnesota

Estimate the fully loaded cost of a W-2 hire in Minnesota — including 1% SUTA, $1/$100 workers’ comp, state income tax up to 9.85%, benefits, and overhead.

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True Cost of Hiring Calculator

Pre-configured with Minnesota tax rates. Adjust salary, benefits, and overhead to model your specific hire.

Your Inputs

Annual Base Salary$80,000
StateMinnesota
Industry / Workers’ Comp ClassOffice / Clerical
Monthly Benefits$650
401(k) Employer Match4%
SUTA Rate1%
Workers’ Comp (per $100)$1
Annual Overhead$3,000

Total Annual Cost

$101,382

Loaded multiplier: 1.27× base salary

Cost ComponentAnnual
Base Salary$80,000
Employer Taxes (FICA, FUTA, SUTA)$6,582
Workers’ Comp$800
Benefits + 401(k) Match$11,000
Overhead$3,000

Open the interactive calculator to adjust every input and export a PDF report.

Minnesota Employer Tax & Payroll Rates

Representative 2026 new-employer figures for Minnesota. Confirm your experience-rated rate with the state agency.

Rate / RequirementValue
SUTA (State Unemployment) Rate1% on first $42,000
State Income TaxUp to 9.85% (employer withholds)
Workers’ Comp (office/clerical)$1 per $100 payroll
State Disability InsuranceNone
Minimum Wage (2026)$11.13/hour
State Workforce AgencyMinnesota Unemployment Insurance Program

Every Minnesota rate, traced to its source

Each figure on this page is classified and cited. Statutory rates are fixed by law; the new-employer SUTA rate and workers’ comp are representative estimates; benefit/overhead defaults are editable TrueHireCost modeling assumptions.

MetricValueTypeSourceLast verified
New-employer SUTA rate1%Representative estimateMinnesota Unemployment Insurance ProgramAug 2026
SUTA wage base$42,000Official statutory figureMinnesota Unemployment Insurance ProgramAug 2026
Workers’ comp (office/clerical)1 / $100 payrollRepresentative estimateDOL Office of Workers’ Compensation ProgramsAug 2026
State income taxUp to 9.85%Official statutory figureMinnesota Unemployment Insurance ProgramAug 2026
State minimum wage$11.13/hrOfficial statutory figureMinnesota Unemployment Insurance ProgramAug 2026
Employer FICA7.65% (SS 6.2% + Medicare 1.45%)Official statutory figureIRS Publication 15 (Circular E)Aug 2026
FUTA (effective)0.6% on first $7,000Official statutory figureIRS Publication 15 (Circular E)Aug 2026
Social Security wage base$184,500Official statutory figureSocial Security AdministrationAug 2026

How to read this table

  • Official statutory figures are set by law.
  • Published benchmarks come from BLS and SHRM.
  • Representative estimates vary by employer and carrier.
  • TrueHireCost modeling assumptions are editable defaults — see the methodology page.

Hiring Cost Example: $80,000 Salary in Minnesota

An $80,000 office hire in Minnesota costs approximately $101,382 once employer taxes, workers’ comp, benefits, and overhead are added — a 1.27× loaded multiplier.

ComponentAnnual Cost
Base Salary$80,000
Employer FICA (7.65%)$6,120
Minnesota SUTA (1%)$420
FUTA (0.6%)$42
Workers’ Comp ($1/$100)$800
Benefits + 401(k) (4%)$11,000
Overhead$3,000
Total Loaded Cost$101,382

Hiring Landscape in Minnesota

Healthcare, manufacturing, retail, and agribusiness anchor Minnesota’s economy. When budgeting a hire in Minnesota, the biggest state-specific cost drivers are the 1% SUTA rate (applied to the first $42,000 of wages), workers’ compensation at $1/$100, and state income tax withholding at up to 9.85%.

Minnesota New-Hire Compliance Checklist

Key steps employers must complete when hiring in Minnesota.

  • Register SUTA with MN UI
  • Prepare for MN PFML
  • Obtain workers’ comp coverage
  • Withhold high state income tax
  • Report new hires within 20 days

Minnesota Payroll Mandates

  • • Workers’ comp required for all employers
  • • MN Paid Family & Medical Leave (2026)
  • • High state income tax (up to 9.85%)

Minnesota Tax & Payroll Resources

Minnesota Unemployment Insurance Program

Minnesota workforce & unemployment agency

IRS Pub 15

Federal employer tax guide

DOL Wage & Hour

Federal wage & hour division

Explore More Hiring Costs

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Editorial Standards

Maintained by the TrueHireCost editorial team

TrueHireCost is an independent research and tooling project. Our content is written and maintained by the TrueHireCost editorial team — not by a licensed CPA, attorney, or HR certificant, and no named professional endorses or "verifies" these pages. Rates, wage bases, and benchmarks are collected from official public sources (IRS, U.S. Department of Labor, state workforce agencies, and the Bureau of Labor Statistics) and labeled with their source and last-reviewed date. State SUTA, workers’ comp, and minimum-wage figures are representative new-employer estimates and should be confirmed with the agency for your specific situation.

Found an outdated rate or a calculation that looks wrong? Email editorial@truehirecost.com and we’ll review and correct it. TrueHireCost is an informational tool, not professional tax, legal, or HR advice — consult a qualified professional before making hiring or payroll decisions.

Last updated 2026-08-24

Data Sources & Methodology

Every rate and formula is checked against the issuing agency before publication. Last updated 2026-08-24.

IRS

FICA, FUTA tax rate & wage base

U.S. DOL

FUTA credit, federal wage & hour

State Workforce Agencies

SUTA rates, wage bases, new-employer rates

BLS

Industry salary benchmarks & turnover

Frequently Asked Questions

What is the true cost of hiring an employee in Minnesota?

The fully loaded cost of an $80,000 hire in Minnesota includes the 1% SUTA rate, $1/$100 workers’ comp, state income tax withholding up to 9.85%, benefits, and overhead. Use the TrueHireCost calculator above for a Minnesota-specific estimate.

What is the SUTA rate in Minnesota?

The representative new-employer SUTA rate in Minnesota is 1%, applied to the first $42,000 of wages per employee. Your experience-rated rate may differ — confirm with the Minnesota Unemployment Insurance Program.

Is workers’ comp required in Minnesota?

Workers’ comp required for all employers. Check the Minnesota labor agency for the exact employee-count threshold that applies to your business.

Does Minnesota have a state income tax?

Yes. Minnesota levies a state income tax with a top marginal rate of 9.85%. Employers must withhold state income tax from employee wages.

For Estimation Purposes Only

TrueHireCost provides hiring cost estimates for informational purposes only and is not professional tax, legal, or HR advice. Actual employer costs vary by experience rating, industry classification, carrier, and jurisdiction. Consult a qualified CPA, tax advisor, or HR professional before making hiring or payroll decisions.