| General UI Rate Questions for All Employers |
1. What are the common factors for 2009?
| Base Tax Rate |
0.40% of taxable wages |
| Additional Assessment |
14.00% of tax due |
| Federal Loan Interest Assessment |
0% |
| Workforce Development Fee |
0.10% or 0.12%
of taxable wages* |
| Taxable Wage Base |
$26,000 |
* The Workforce Development Fee is 0.10% of taxable wages paid January 1, 2009 – June 30, 2009
or 0.12% of taxable wages paid July 1, 2009 – December 31, 2009.
2. What is an experience rating and how is it calculated?
Your experience rating reflects your employment history. The total of UI benefits paid charged to your account during the period from July 1, 2004, through June 30, 2008 is multiplied by 1.25, and then divided by the total taxable payroll that you reported on your quarterly wage detail reports for the same period.
3. Where can I view a list of the benefits charged to my account?
You can find detailed benefits paid charge information in your online account. Select Benefits Paid Charge Activities from your account menu. You will find links to several screens that display benefits paid charge information by individual, by calendar quarter, and by fiscal year.
4. Where can I view a quarterly breakdown of the taxable wages?
You can view wage data in your online account. Select Tax and Wage Detail Reporting from your account menu, then select View History and click the link at the bottom of the screen to view quarterly wages, taxes, assessments and fees. In 2009, the first $26,000 paid to each employee is taxable.
5. What is the base tax rate?
The base tax rate is paid by all Minnesota taxpaying employers to cover costs that are not experience rated, such as benefits paid when employers go out of business. It varies from year to year depending on the balance in the Minnesota UI Trust Fund. The base tax rate for 2009 is 0.40 percent of taxable wages.
6. What is the additional assessment?
If the balance in the Minnesota UI Trust Fund falls below certain levels, an additional assessment takes effect for the following year. In 2009, an additional assessment of 14 percent of the tax due is in effect.
7. What is the federal loan interest assessment?
When the Minnesota UI Trust Fund borrows federal funds to pay UI benefits, a special assessment is needed to pay interest on the loan. There is no special assessment in 2009.
8. What is the workforce development fee?
A fee collected and deposited into the Minnesota Workforce Development Fund for the purpose of supporting employment and training programs for workers who have permanently lost their jobs.
9. What amount do I use when I complete my Federal Unemployment Tax (FUTA) report?
Use only the UI tax and the additional assessment. The federal loan interest assessment and the workforce development fee do not qualify for FUTA credit. Your online account includes FUTA credit information. Select Payment Information, then select FUTA Credit to view the FUTA credit calculations for your account.
10. What is a tax rate buydown?
If your account has been charged with UI benefits paid to former employees, and your account has no amount past due, you may voluntarily buy down all or part of the charges to reduce your tax rate. If you make a partial buydown, the most recent charges in the experience rating period will be cancelled first. A 25 percent surcharge must be included in the tax rate buydown. Beginning January 1, 2009, a calculation tool will be available on your online account. Select Account Maintenance and then select Process Tax Rate Buydown. For step-by-step instructions on how to complete a Tax Rate Buydown, click on User Guide at www.uimn.org
11. When can a tax rate buydown be made?
A tax rate buydown to reduce your 2009 UI tax rate can be made from January 1 through April 30, 2009. Payment must be made electronically.
Frequently Asked Questions for New Employers |
1. What is the new employer tax rate?
An employer who has paid wages for only a short time is assigned the new employer tax rate. It is based on UI benefits paid to all Minnesota applicants and wages reported by all Minnesota employers, plus the base tax rate. Eventually, each employer becomes eligible for an individual experience rating based on UI benefits paid and taxable payroll. In 2009, an experience rating is assigned to each employer who began employment on or before June 30, 2007.
2. What is the high experience rating industry tax rate?
The high experience rating industry tax rate is assigned to new employers in industries that historically have high experience ratings. These include: residential, commercial or industrial construction; sand, gravel or limestone mining; manufacturing of concrete, concrete products or asphalt; and road building, repair or resurfacing, including bridges, tunnels and residential and commercial driveways and parking lots. The high experience rating industry tax rate is set by statute at 8.00 percent, plus the base tax rate.
3. What is the Base Tax Rate?
The base tax rate is paid by all Minnesota taxpaying employers. It varies from year to year depending on the balance in the Minnesota UI Trust Fund. The base tax rate for 2009 is 0.40 percent.
4. What is the Additional Assessment?
If the balance in the Minnesota UI Trust Fund falls below certain levels, an additional assessment takes effect for the following year. In 2009, an additional assessment of 14 percent of tax due is in effect.
5. What is the Federal Loan Interest Assessment?
When the Minnesota UI Trust Fund borrows federal funds to pay UI benefits, a special assessment is needed to pay interest on the loan. There is no special assessment in 2009.
6. What is the Workforce Development Fee?
A fee collected and deposited into the Minnesota Workforce Development Fund for the purpose of supporting employment and training programs for workers who have permanently lost their jobs.
7. Where can I view a quarterly breakdown of the taxable wages?
You can view your wage data by logging in to your online account. Select Tax and Wage Detail Reporting from your account menu, then select View History and click the link at the bottom of the screen to view quarterly wages, taxes, assessments and fees. In 2009, the first $26,000 paid to each employee is taxable.
8. What amount do I use when I complete my Federal Unemployment Tax (FUTA) report?
Use only the UI tax and the Additional Assessment. The Federal Loan Interest Assessment and the Workforce Development Fee do not qualify for FUTA credit. Your online account includes FUTA credit information. Select Payment Information, then select FUTA Credit to view the FUTA credit calculations for your account.
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