• Some entities do not need a UI account, including: • Sole proprietorships whose only workers are the sole proprietor’s spouse, parents, and/ or minor children. • Corporations or LLCs whose only workers are owner‑officers holding 25 percent or more
of the entity and who have not elected coverage. • Partnerships whose only workers are the partners.
When a business acquires another Minnesota employer, some or all of the predecessor’s wage and benefit experience may transfer to the successor’s UI account, which can affect the successor’s tax rate. UI tax rates, experience rating, and assessments • New employers receive a “new employer” rate based on the average rate for their NAICS industry , so they start at a rate similar to others in that sector. • Once an employer has enough history, Minnesota assigns an experience rate based on the employer’s taxable wages and benefits charged, using an experience period of the prior 48 months ending June 30 before the rate year. • The better an employer’s unemployment experience (fewer benefits charged), the lower the experience rate; the worse the experience, the higher the rate. • Experience rates are computed to the nearest one‑hundredth of a percent and combined with base rates and assessments; total UI rates generally range between roughly under 1 percent up to around 10–11 percent of taxable wages, subject to current law. • Additional assessments can apply if the UI trust fund balance drops below certain levels, and there is also a Workforce Development Assessment that supports training and re‑employment programs; both are paid along with regular UI taxes. Wage detail reports, payments, and penalties • Employers must file quarterly wage detail reports and pay UI taxes and related assessments on covered wages up to the annual taxable wage base . • Reports must list, for each employee, at least: full name, Social Security number, total wages, hours worked, work location(s), plus counts of covered workers in the pay period including the 12th of each month. • Reports and payments are due by the last day of the month following each calendar quarter (April 30, July 31, October 31, January 31); if that day is a weekend or state holiday, the due date moves to the next business day. • Wage detail reports must be filed electronically using the UI Employer Self‑Service System; employers with no wages in a quarter must still file a Zero Wage Report . • Electronic payments via ACH debit/credit are available to all employers and required for those reporting 50 or more employees in a quarter and all third‑party processors.
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