Process Tax Rate Buydown

If your account has been charged with benefits paid charges to former employees, you can voluntarily buy back all or part of the charges to reduce your tax rate. If you make a partial buydown, the most recent charges in the experience period will be canceled first. A 25 percent surcharge is included in the tax rate buydown. There is a calculation tool in your Minnesota Unemployment Insurance online Employer Account to assist you, see Forecast Tax Calculator. The tax rate buydown must be received within 120 calendar days after the beginning of the calendar year for which the tax rate is effective. All buydown payments must be made electronically by the Tax Rate Buydown Payment Agreement screen in the process listed below. This option is not available if there is debt on your account.

NOTE: The Tax Rate Buydown option will only display when it is available (first 120 days of the calendar year).

Step-by-step instructions for a tax rate buydown:

1. Go to www.uimn.org, click on Employer Login.
2. Enter your User ID and Password, click Login.
3. On My Home Page, select Account Maintenance.
4. Click on Process Tax Rate Buydown.
5. Enter desired 'Experience Rate' or 'Tax Rate Buydown Payment', click Calculate. (See example)
6. Under 'Tax Rate Buydown Payment Agreement' a tax rate buydown payment amount will display. If the Experience Rate Entered and Tax Rate Buydown Payment is acceptable, click Next. If not acceptable, click Previous to perform another calculation.
7. Click the checkbox; "I agree to make this payment to remove the corresponding amount of Benefits Paid Charges from UI Employer Account in order to reduce my experience rate. I understand that this payment is not refundable", click Make Payment. (See example)
8. Enter banking account information, click Next.
9. Confirm: Payment Amount, Routing Transit Number, Bank Account Number, Account Type and Payment Effective Date, click Submit.
10. Receipt of Payment screen will display; to print, click Printer Friendly Receipt, and then click Next.
11. The current year's Unemployment Insurance (UI) Tax Rate Notice screen will display. (See example)