(Effective January 1, 2026)
1. Does this apply to our church?
- If your church has any employees in Minnesota besides pastors, you are required to participate in Minnesota Paid Leave.
- The law applies to churches and other religious organizations; there is no blanket religious or small employer exemption from the program itself.
2. How does this affect pastors?
- Pastors who are taxed under SECA (self-employment Social Security) are treated as self-employed for Minnesota Paid Leave and are generally not covered employees; churches do not pay premiums or report wages for these pastors.
- SECA taxed pastors may choose to “opt in” to the program as self-employed individuals; if they do, they are personally responsible for their own premiums.
- If a pastor is taxed under FICA rather than SECA, that pastor is treated like any other employee and is automatically covered, with the church responsible for premiums and wage reporting.
3. What benefits will covered staff receive?
- Beginning January 1, 2026, eligible employees may receive up to 12 weeks of paid medical leave and up to 12 weeks of paid family/safe leave in a benefit year, with a maximum of 20 weeks combined.
- Benefits provide partial wage replacement and job protected leave for qualifying reasons such as a serious health condition, bonding with a new child, or caring for certain family members.
4. What must our church do, and by when?
Right now / 2025
- Set up accounts and report wages.
- If you have Minnesota employees, you must have an employer account in the state system and be submitting quarterly wage reports for covered staff.
- Religious organizations that only have workers covered by Paid Leave (and not Unemployment Insurance) may use a Paid Leave–only account.
- Post and deliver required notices by December 1, 2025.
- You must post the official Minnesota Paid Leave workplace poster in a visible location.
- You must also give each employee written information about Paid Leave in their primary language and obtain acknowledgment (signature, electronic confirmation, or documented proof).
- Decide how to split premiums before January 1, 2026.
- Employers must pay at least 50% of the premium but may choose to pay more, up to 100%; any remaining share can be deducted from employee pay.
- Premiums for wages paid in the first quarter of 2026 will be due with your April 2026 filing.
Starting January 1, 2026
- Begin collecting any employee share of premiums and remitting total premiums quarterly through the state system.
- Ensure new hires receive the Paid Leave notice within 30 days of hire and that you keep proof of acknowledgment.
5. How should we adjust our policies and practices?
- Update your personnel policies or handbook to explain how Minnesota Paid Leave interacts with your church’s existing PTO, sick leave, and unpaid leave, and clarify who is covered (e.g., non-pastoral staff and any FICA-taxed pastors).
- Plan for ministry coverage during possible extended leaves (up to 12–20 weeks).
- Communicate the church’s approach as part of your overall pastoral care for staff, emphasizing both legal compliance and your biblical commitment to caring well for employees and their families.
6. Where can we find more help?
- Official information and employer resources: PaidLeave.mn.gov.
- Each church should consult a knowledgeable accountant or attorney for specific advice; this guide is for general information and is not legal or tax counsel.