Saint Paul, Minnesota
Saint Paul employer costs: minimum wage, taxes and paid leave
Saint Paul sets its own minimum wage by business size, above Minnesota’s. The minimum wage is $17.02 an hour from Jan 1, 2027. A $50,000 employee costs a new employer about $61,689 a year here in 2026.
Calculate the cost of an employee in Saint Paul
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
Saint Paul employer rules on top of Minnesota's
What Saint Paul adds, then the federal and Minnesota lines every employer here pays. The full Minnesota breakdown is on the state page.
- Saint Paul minimum wage
$16.37 in 2026, $17.02 in 2027
$16.37 an hour (Businesses with 6 or more employees; $14.25 with 5 or fewer); $17.02 from Jan 1, 2027 (Businesses with 101 or more employees from January 1, 2027, and 6 or more from July 1, 2027).
per City of Saint Paul, Labor Standards Enforcement and Education, as of Jan 1, 2026; per City of Saint Paul, Labor Standards Enforcement and Education, as of Jan 1, 2027
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Minnesota unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Minnesota unemployment insurance (SUTA)
At least 1% of $44,000
New employers pay their industry's average rate, at least 1% under federal law, on the first $44,000 of each employee's pay in 2026. After two to three years the rate follows your own claims history. The state assigns new employers their industry’s average rate; 1.0% is the lowest rate federal law allows.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026; per Washington Employment Security Department, as of Jan 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in Saint Paul
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,032 hours | $48,846 |
|---|---|
| Paid sick leave required by law48 hours | $1,154 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $44,000 | $440 |
| Minnesota Paid Leave (employer share)0.22% of $50,000 | $110 |
| Workers' compensation (state index rate)$1.25 per $100 of payroll | $625 |
| Health insurance (single coverage, state average)average employer contribution | $6,647 |
| Total cost a year | $61,689 |
23.4% on top of pay · $30.36 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,032 hours | $36,576 |
|---|---|
| Paid sick leave required by law48 hours | $864 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $37,440 | $374 |
| Minnesota Paid Leave (employer share)0.22% of $37,440 | $82 |
| Workers' compensation (state index rate)$1.25 per $100 of payroll | $468 |
| Health insurance (single coverage, state average)average employer contribution | $6,647 |
| Total cost a year | $47,918 |
28% on top of pay · $23.58 per hour worked
What changes in 2027
- Saint Paul's minimum wage becomes $17.02 an hour on Jan 1, 2027 (Businesses with 101 or more employees from January 1, 2027, and 6 or more from July 1, 2027). per City of Saint Paul, Labor Standards Enforcement and Education, as of Jan 1, 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- Minnesota's minimum wage becomes $11.87 an hour on January 1, 2027. per Minnesota Department of Labor and Industry, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
What is the Saint Paul minimum wage in 2027?
$17.02 an hour from Jan 1, 2027 (Businesses with 101 or more employees from January 1, 2027, and 6 or more from July 1, 2027), up from $16.37: $35,402 for a full-time year in Saint Paul.
What is the minimum wage in Saint Paul in 2026?
$16.37 an hour in Saint Paul (businesses with 6 or more employees; $14.25 with 5 or fewer), or $4.96 above Minnesota's $11.41.
How much does an employee cost in Saint Paul?
$61,689 a year for a $50,000 employee in Saint Paul (new employer, 10 staff), 23.4% above pay.
What payroll taxes do employers pay in Saint Paul?
Only federal and Minnesota payroll taxes: $4,417 a year on a $50,000 Saint Paul salary.
Is paid sick leave required in Saint Paul?
Yes, under Minnesota's rule: 48 paid hours a year for a full-time Saint Paul employee at 100 staff.
What does a minimum-wage employee cost in Saint Paul?
$44,184 a year at $16.37 an hour full time in Saint Paul: $21.74 per hour worked.
More employer cost pages
Minnesota
Other cities with their own rules
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.