How to set up new MN leave "premium" in Paycheck?

Question

Starting in 2026, MN is withholding family and medical leave premiums from our paychecks. On the employer statement, it is included in the Employee Tax section. In MN tax guidance (link below), it is a "post-tax deduction from pay. Do you think it should be treated the same as the current state tax withholding in my paycheck setup? Or move it to the post-tax section?

https://mn.gov/deed/assets/taxes-paid-leave_tcm1045-689451.pdf

Boatnmaniac · Answer

Per MN State guidance (https://taxnews.ey.com/news/2026-0503-minnesota-issues-guidance-on-the-income-tax-treatment-of-paid-family-and-medical-leave-insurance-benefits-and-premiums):

The employee portion of the paid leave premium is treated as a post-tax payroll deduction, which does not reduce Minnesota taxable wages.

To me it seems fairly clear that this should be treated much like long-term disability insurance premiums that are deducted from a paycheck…as an after-tax payroll deduction…and not as an employee tax.

NotACPA · Answer

@RG8

What's being reported on your paystub seems to contradict the MN guidance you've reported. So I think that you should contact your payroll dept and ask them to explain the contradiction and that you need further guidance.

No one here is authorized to give tax guidance and you alone are responsible for the tax return you file next year … so figuring out in advance what's happening is the safest course of action.

Now, I'm a "numbers guy" and when employed I had a spreadsheet to calculate my payroll withholding and what they should be.  But unless you're experienced with payroll calculations (it was my 1st system I worked on),  I can't suggest that you build such.

Because I had that spreadsheet, some 40 years ago, I detected when my employer miscalculated tax withholding when a new year began.  Naturally, they initially challenged my  finding … but they eventually relented.

Quicken Carlos · Answer

Hi @RG8,

Thank you for taking the time to contact Quicken Support.

I suggest moving it to the Post-Tax Deduction, as recommended by Minnesota tax guidance. To do this:

* Go to Tools > Manage Bill & Income Reminders.
* In the Manage Bills and Income Reminders window, search for the paycheck and click the Edit button.
* Select Edit this instance and all future instances.

* Scroll down to Add After-Tax Deduction.
* Choose the option that works best for you, enter the amount, and select the appropriate category.

* Click OK to save your changes.

I hope this information helps!