Payments

Reference: Minnesota Law, §268.051 Subd.1, §268.051 Subd.1a §268.057 Subd.2 , §268B.14, §268B.15

The Minnesota Unemployment Insurance (UI) Program and the Minnesota Paid Leave Program use quarterly wage detail reports to calculate amounts due, but they are calculated separately:

• The Minnesota Unemployment Insurance Program calculates unemployment insurance taxes based on taxable wages paid to employees covered by Unemployment Insurance.
• The Minnesota Paid Leave Program calculates paid leave premiums based on taxable wages paid to employees covered by Paid Leave.

Payments of taxes, premiums, and any additional assessments or fees can be made electronically or by paper check. Payments must be received on or before the last day of the month following the end of the calendar quarter.

Payment methods

Electronic payments can be made by ACH credit or ACH debit. All electronic payments are completed using the Joint Unemployment Insurance – Paid Leave Employer System.

Electronic payments are required for:

• 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 or Paid Leave premium payments on behalf of a client company.

Employers with fewer than 50 employees have the option to pay electronically or submit a voucher accompanied by a check. Reference the Payment by Check section of the Employer Self-Service System User Guide for step-by-step instructions.

• Unemployment Insurance payments should be made payable to the Minnesota U.I. Fund.
• Paid Leave payments should be made payable to the Minnesota Paid Leave Fund.

Priority of Unemployment Insurance payments

Any payment received from a taxpaying employer must be applied in the following order:

1. Unemployment insurance taxes,
2. Special assessment for interest on any federal loan,
3. Workforce development assessment,
4. Interest on past due taxes, then
5. Penalties, late fees, administrative service fees, and costs.

Priority of Paid Leave payments

1. Family and medical leave premiums,
2. Interest on past due premiums,
3. Penalties, late fees, administrative service fees, and costs.