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 2022
All 2022 Unemployment Insurance Tax Rate Determinations were sent out by U.S. mail to Minnesota employers on or before December 15, 2021.
The Minnesota Legislature has passed, and Governor Walz has signed into law, a Trust Fund Replenishment bill. The new law reduces the amount of unemployment tax and assessments a taxpaying employer will owe in 2022.
The new law reduces the:
- Base Tax Rate for 2022 from 0.50% to 0.10%.
- Additional Assessment for 2022 from 14.00% to 0.00%.
- Special Assessment (Federal Loan Interest Assessment) for 2022 from 1.80% to 0.00%.
For more information on this new law, refer to Unemployment tax changes: How they affect you.
The Taxable wage base for 2022 is $38,000.
To view your 2022 Tax Rate Determination online in your employer account:
- Log in to your account at www.uimn.org
- On My Home Page, select Account Maintenance.
- Select View Tax Rate Determination.