Reference: Minnesota Law, §268.051 Subd.1, §268.051 Subd.1a and §268.057 Subd.2
This section does not apply to nonprofit, governmental employers and Indian tribal organizations that have chosen the reimbursement payment option. Reference the Special Provisions Relating to Governmental, Indian Tribal and Nonprofit Organizations section of this handbook for more information.
The Minnesota Unemployment Insurance (UI) Program computes unemployment insurance taxes due by each employer based on taxable wages paid to employees in covered employment, reported on quarterly wage detail reports. Payment of taxes and any additional assessments or fees can be made electronically or by paper check and must be received by the UI Program on or before the last day of the month following the end of the calendar quarter.
Electronic payments are required by:
- Every employer that reports 50 or more employees in any calendar quarter on the wage detail report, and
- All third-party processors, paying quarterly unemployment insurance taxes on behalf of a client company.
Electronic payments may be made by ACH credit or ACH debit. All electronic payments are completed using the Minnesota Employer Self-Service System.
Employers with fewer than 50 employees have the option to pay electronically or submit a voucher accompanied with a check made payable to the Minnesota U.I. Fund. Reference the Payment by Check section of the Employer Self-Service System User Guide for step-by-step instructions.
Priority of payments
Any payment received from a taxpaying employer must be applied in the following order:
- Unemployment insurance taxes,
- Special assessment for interest on any federal loan,
- Workforce development assessment,
- Interest on past due taxes, then
- Penalties, late fees, administrative service fees, and costs.