The following information may be of use to you when preparing your wage detail report for the Department of Employment and Economic Development.

NOTE: The "hours worked" reporting requirement became effective with the 1st quarter of 1998 quarterly tax filing.

Some frequently asked questions include:

"Why did DEED make this change?" -- This change results in more accurate labor market statistics related to Minnesota workers' hourly earnings. The data will be used for state policy making purposes, NOT for compliance purposes.

"Has this data element become part of Unemployment Insurance benefits eligibility?" -- No. UI Benefits are authorized based upon wages earned, not upon weeks or hours worked.

"How do I report...?"

Salaried workers: If the actual number of hours worked is known, it should be reported. When reliable figures are unavailable, full-time employees should be reported at the rate of 40 hours per week; hours worked by part-time employees and those who work more than full-time should be estimated.

Overtime: The employer should report the number of hours actually worked for which overtime pay or compensatory time is paid, without regard to the overtime pay rate. Compensatory time should be reported when taken, not when earned.

Fractions of hours: If the employee's total number of hours in a quarter results in a fractional amount, the total figure should be rounded to the nearest whole hour. If the fraction is "1/2 hour" it should be rounded up to the next whole hour, and if it's less than a 1/2 hour, it should be rounded down.

Vacation/sick/holiday pay: The actual number of hours for which an employee receives vacation, sick or holiday pay should be reported. Vacations without pay should not be counted as hours worked. Hours worked should not be counted for cash payments in lieu of vacations. Third party sick pay is not reportable as wages, and should not be counted as hours worked.

On call: Hours in which the employee is carrying a pager, or is otherwise "on call" should not be included in the "hours worked" calculation.

Employees not paid by the hour: These include salaried workers and those paid by commission. Also included are workers who are paid by the mile, by piecework, by the acre, by the payload, by reductions in rent, or other non-hourly rates. When the actual number of hours worked is available, it should be reported. In the absence of reliable figures, full-time employees should be reported at the rate of 40 hours per week; hours worked by part-time employees and those who work more than full-time should be estimated.

Wages paid less than once per quarter: This will occur most often with corporate officers who are paid only once or twice a year. The employer should report the number of hours worked in any quarter in which no wages were paid, along with $0 wages. Then, when wages or salaries are finally paid, only the hours worked in that specific quarter should be reported. If the actual number of hours worked is available, it should be reported. In the absence of reliable figures, full-time employees should be reported at 40 hours per week; hours worked by part-time employees and those who work more than full-time should be estimated.

Faculty members of colleges and universities (includes technical and community colleges): If the faculty member is considered to be a full-time employee, 40 hours per week paid should be reported. If the faculty member is considered to be part-time, an estimate of the actual hours worked should be made.

School teachers: When teachers or other staff work nine months but are paid over 12 months, their hours should be reported in the quarters that they actually work. For part-time faculty, coaches, etc., if hours are not known, employers may establish an hourly rate of pay and divide that into quarterly gross wages to obtain an estimate of hours.

Volunteer Firefighters: Employers can establish an hourly rate of pay and divide that amount into the quarterly gross wages to obtain an estimate of hours.

Bonuses, tips, and other gratuities: No additional hours should be reported if hours have been reported for regularly compensated services.

Severance/termination pay: No additional hours should be reported for severance pay. Severance and termination pay compensate the employee for the separation from employment, not for actual services performed.

Please note: The maximum number of hours reportable in any quarter is 999.