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Employers with covered employment must pay quarterly unemployment insurance tax into the Minnesota Unemployment Insurance Trust Fund (the Fund), which is used solely to pay unemployment benefits. This tax is a percentage of the taxable wages paid to employees and may not be withheld from employee wages.
Employers who have only paid wages for a short time will be assigned one of two new employer tax rates, depending on their type of business - a rate which is the computed average rate of all employers or a rate which is assigned to employers in a "high experience rating industry" - each year until the employer qualifies for an experience rating. Each employer’s tax rate is comprised of several factors, which may change yearly depending on the balance in the Fund.
Once an employer qualifies for an experience rating, their tax rate will be determined by dividing the total unemployment benefits paid to former employees by the total taxable wages paid to all of their employees. Reference the Experience Rating section of this handbook for more information.
Employers with an active employer account will receive a Tax Rate Notice in the mail every December that assigns the upcoming year’s tax rate components and taxable wage base. The Tax Rate Notice informs the employer of their right to appeal if they disagree with the tax rate assigned to their account.
View unemployment insurance tax rates online at www.uimn.org, by clicking on Employer Information, then Tax Rates.
This handbook is based on current UI legislation; statements are intended for general information and do not have the effect of law. The Minnesota Unemployment Insurance Law - MN Statutes §268.001 to §268.23 and Administrative Rules 3310 and 3315 - can be accessed through our Web site at www.uimn.org; by clicking on the UI Law link.
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