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Federal financial relief for reimbursing employers

Congress authorized federal funding to reimburse states for certain unemployment costs during the pandemic. Under Minnesota law, employers are not required to repay any unemployment benefit charges that the federal government has already reimbursed.

This federal financial relief came with a series of unique requirements that were challenging to implement. In the 85-year history of the UI program, we have never had to relieve employer charges at this scale or level of complexity. We appreciate your patience as we adapted our accounting systems to ensure this federal financial relief was applied correctly.

Federal financial relief has been applied to Q1-Q4 2020

We have now applied federal financial relief to reimbursing employer accounts for the four completed calendar quarters of 2020. Next, we will analyze your account to determine whether you qualify for additional financial relief available under state law. If you qualify for state financial relief, we may be able to remove additional benefit charges for the four completed calendar quarters of 2020. These adjustments may take several weeks – or possibly several months – to complete.

We will also continue to apply federal financial relief for completed calendar quarters in 2021. Under the recent American Rescue Plan legislation, federal financial relief is currently set to continue through early September.

Quarterly billing for reimbursing employers will remain suspended while we make additional adjustments to your employer account. When this work is completed, we will turn billing back on. We will notify you at least a couple months ahead of time before billing is turned back on.

Reviewing the federal financial relief applied to your account

You can review the federal financial relief applied to your employer account online. A few reminders as you review your account:

  1. At this point, we have only applied federal financial relief for calendar year 2020. 
  2. One category of federal financial relief became available starting with benefit charges for the week of March 15, 2020. Two other categories of federal financial relief became available with benefit charges for the week of March 29, 2020.
  3. Federal financial relief only applies to benefits that are charged to your account. It would not apply to charges that were removed for other reasons (i.e., if an applicant was held ineligible for benefits retroactively).
  4. If/when we apply state financial relief, you will see additional adjustments applied to your account.

Step-by-step instructions will help you review federal financial relief applied to your employer account. As you review your benefit charges, you may notice that they are quite complicated. This guide is not comprehensive and may not explain every benefit charge adjustment you see.

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