The Minnesota Paid Family and Medical Leave Law, effective January 1, 2026, introduces statewide paid leave benefits similar to those in other states. Beyond HR and payroll administration, the law creates important tax and retirement plan considerations. Employer-paid premiums, taxable benefit payments, and distinctions between state-run, private-insurance, and self-insured paid family and medical leave coverage all affect how income is reported and whether it counts as retirement plan compensation. Employers should review definitions of compensation in their benefit plans, consider whether plan amendments are needed, and begin preparing now to avoid unintended inclusion or exclusion of PFML-related payments.