Employer of Record for Minnesota

Hiring in Minnesota for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Minnesota:

• Establishing a local entity: Creating a legal entity in Minnesota allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
• Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Minnesota’s labor laws, helping you hire in Minnesota without navigating the complex legal landscape yourself.
• Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Minnesota’s labor regulations while offering competitive employee benefits.
• Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Minnesota has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Minnesota.

Complying with Minnesota specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Minnesota, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

We can help you get your new employee started in Minnesota fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like Minnesota's superannuation system (if applicable).

The employer of record is responsible for:

• Employment Compliance: Ensure all employment contracts comply with Minnesota's labor laws and regulations, including proper classification of employees.
• Payroll Management: Calculate, process, and distribute employee salaries in accordance with Minnesota's payroll laws, including deductions for taxes and social security contributions.
• Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
• Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Minnesota's legal requirements.
• Benefits Administration: Provide mandatory employee benefits as required by [State]'s labor laws, such as health insurance, pension contributions, and statutory leave.