Minnesota’s Paid Leave program is running short on funds — and your taxes could go up

Minnesota’s Paid Leave program faces a funding shortfall, with $598 million paid to 75,000 participants but only $344 million collected through a 0.88% wage tax. The Department of Employment and Economic Development (DEED) may raise the tax to 1.1% by 2027 to address the gap, sparking concerns from small businesses while others support the program’s benefits for employee retention.