Unemployment Insurance (UI) Tax Rates
Employers with covered employment must pay quarterly unemployment insurance taxes into the Minnesota Unemployment Insurance (UI) Trust Fund. The UI Trust Fund is used solely to pay unemployment benefits.
Your UI tax rate is calculated for your individual business. It is normally calculated and mailed to you in December each year and applies to taxable wages in the following calendar year. Your UI tax rate is based on your employment history and the current balance of the UI Trust Fund.
- New employers: Employers that have only paid wages for a short time are assigned a tax rate based on the average for their industry.
- Experience-rated employers: Employers that have paid wages for long enough to qualify for an experience rating will get an individually-calculated tax rate. This tax rate is determined by dividing the total unemployment benefits paid to former employees by the total taxable wages paid to all their employees.
Your UI tax rate is applied to the taxable wages you pay to your employees. You cannot withhold UI tax from the wages you pay to employees.
Tax rate factors for 2021
Due to ongoing challenges associated with the COVID-19 pandemic, the Minnesota Legislature recently passed a special law to “carry over” your 2020 UI tax rate.
Your 2021 UI “experience rate” or “new employer rate” will be calculated the same as it was in 2020. The Legislature made this change to ensure that pandemic-related unemployment in 2020 did not affect 2021 tax rates. 8.90% remains the maximum UI experience rate allowed under Minnesota law.
View new employer rates for 2021
Assessments for 2021
There is no Additional Assessment for 2021.
Viewing your tax rate information
There are two different places in your online account where you can view your 2021 tax rate.
For a total cost roll-up factors, see 4-Year Tax Rate History.