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Summary:
Military Leave: Both state and federal law provide employees
with the right to take leave in order to serve in the military.
At the federal level, leave rights are governed by the
Uniformed Services Employment and Reemployment Rights Act (USERRA).
In Minnesota,
employees working for public entities are granted certain leave
rights for military service. State pension plans may have provisions for
purchase of service credit. Contact
each pension plan directly for further information.
Military
Pay Differential: An employee of the State of Minnesota
who is on a military leave of absence must be paid the difference
between the employee’s salary and their military pay if the state
salary exceeds the military pay. This
policy came into effect with the revision of M.S. 192.26 and 192.261
(which originally provided for the initial 15 days of paid leave).
This change was made effective May
29, 2003.
A follow-up memo from DOF dated December 27, 2004 clarified how these payments
should be treated. The
military pay differential is not subject to federal, state. FICA, or Medicare tax withholding. All military differential pay will be reported
at the end of the calendar year on form 1099 –MISC, not on form
W-2. Because this income
must be reported on Form 1099 – MISC, no deductions will be taken
from this pay. This includes deferred compensation, retirement,
and benefits deductions. Payment
under this section must not extend beyond four years from the
date the employee reported for active service, plus any additional
time the employee may be legally required to serve.
The Employee must provide an official military
pay statement in order to receive this benefit.
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