Under Minnesota Unemployment Insurance Law, every individual or organization that pays covered wages in Minnesota must register with the Minnesota Unemployment Insurance (UI) Program. Registration with the UI Program should be done as soon as possible after first wages are paid for covered employment in Minnesota. Reference the New Employer Registration section of this handbook for more information.
Special provisions exist for business entities in determining whether or not employment is covered. The following are not covered for Minnesota unemployment insurance tax purposes:
For information about voluntarily electing coverage for non-covered employees, reference the Elect Coverage for Noncovered Employees section of this handbook.
Domestic Corporations that meet certain requirements may elect to be subject to the provisions of Subchapter "S" of the Internal Revenue Code in lieu of paying federal income taxes. These corporations generally do not pay a tax on their income. Instead, the income, expense and credit items of the corporation are passed through to the shareholders, who then report them on their personal income tax returns. In essence, the corporation is treated like a partnership for income tax purposes.