Instrumentalities or political subdivisions of Minnesota and Indian tribal organizations that have employment in Minnesota are subject to unemployment insurance wage reporting. These employers are assigned reimbursing accounts unless they elect to pay tax. Charitable non-profit employers also have this option available to them.
An election to pay unemployment insurance tax:
NOTE: A request to terminate an election to pay unemployment insurance tax must be submitted to the UI Program before the end of the calendar quarter prior to the calendar quarter it is to take effect.
Nonprofit employers, including religious, charitable, educational, or other organizations described in Section 501(c)(3) of the Internal Revenue Code that are exempt from income tax under Section 501(a) of the Code, pay quarterly unemployment insurance tax unless they elect to reimburse benefits.
NOTE: Federal tax exempt status does not relieve nonprofit employers from liability for other taxes, including state unemployment insurance tax.
Nonprofit organizations must:
The following types of nonprofit employment are not required to pay unemployment insurance tax or reimburse benefits.
Nonprofit employers who are eligible for and have elected to reimburse the Minnesota UI Trust Fund rather than pay quarterly taxes:
Nonprofit employers who elect reimbursement also need to know:
Elections must be submitted using the Minnesota Employer Self-Service System within 30 days from the date the employer is notified of coverage. Elections remain in effect for a minimum of 24 months .
Nonprofit employers that have paid quarterly unemployment insurance tax may change to the reimbursing method. The election:
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 website at www.uimn.org by clicking Employers & Agents, Help and Support, then the UI Law link.