What Minnesota S Corp Owners Need to Know About the New Paid Leave Program

Minnesota’s new Paid Family and Medical Leave program is bringing big changes for business owners—including S Corporation owners. If you're an S Corp owner in Minnesota, it's important to understand what’s required of you under this new law, even if you don’t have employees.

What Is the Paid Leave Program?

Starting January 1, 2026, Minnesota will begin offering Paid Family and Medical Leave benefits to workers across the state. This program is funded through employer and employee contributions. The state will administer and distribute benefits to eligible individuals who need time off for qualifying family or medical reasons.

More information is available directly from the state here: https://mn.gov/deed/paidleave/

S Corp Owners: You Must Register and Pay In

Here’s the key takeaway: S Corporation owners must register for a Paid Leave Only account and begin paying into the program—regardless of whether you have employees.

• Contributions will start in 2026
• But the account setup must be completed now (2025)

This applies even if you are the only employee of your S Corporation or if you don’t plan to take leave benefits. At this time, there is no exemption for owner-only S Corps.

Why This Matters

While the law may still evolve—and many are hoping for future exemptions—compliance is currently mandatory. Failing to register could result in penalties, back payments, or delays in state processing once the program goes live.

What Should You Do Now?

1. Visit https://mn.gov/deed/paidleave/
2. Review the program details and FAQs
3. Register your business for a Paid Leave Only account
4. Stay tuned for updates, and we’ll keep you informed if any changes or exemptions are announced

Questions?

We know this may feel like just another administrative burden, especially for small business owners who wear many hats. But we’re here to help. If you’re a client of our firm and need assistance registering or understanding how this applies to your business, feel free to reach out.