Registering for a Minnesota Unemployment Insurance Employer Account All entities that pay wages to employees performing covered services in Minnesota are required to register with the Minnesota Unemployment Insurance Program. Registration is done either online or by automated phone system, and should be completed as soon as possible after wages are paid to employees performing covered services in Minnesota, but not later than the due date of the first Wage Detail Report (discussed below in “Wage Detail Reports”). Based on the information provided, the Minnesota Unemployment Insurance Program will determine if the entity is required to report the wages paid to its employees and pay Minnesota unemployment insurance taxes on those wages, or (if eligible) reimburse any unemployment benefits that are paid to the entity’s former employees. If the entity meets the reporting requirements, it will be assigned an unemployment insurance employer account number. The following entities do not need to register for a Minnesota Unemployment InsuranceEmployer Account: • sole proprietorships whose only employees are the spouse, parents, and/or minor children of the sole proprietor, or; • corporations and LLCs whose only employees are owner/officers who directly or indirectly own 25 percent or more of the business and have not chosen to be covered under the Minnesota Unemployment Insurance Program, or; • partnerships whose only workers are the partners of the partnership. Acquisitions When an employer acquires all or part of a business that was required to pay unemployment insurance taxes in Minnesota, that transaction can affect the acquiring employer’s UI tax rate. Depending on the circumstances, taxable wages and benefits paid charges associated with the predecessor employer’s Unemployment Insurance account may be transferred to the successor employer’s Unemployment Insurance account. This transfer is effective the date of the acquisition or merger; the Minnesota Unemployment Insurance Program will then recalculate the successor’s tax rate effective the first day of the calendar quarter following the effective date of the transfer. Tax Rates Visit Minnesota Unemployment Insurance Program, Wages & Taxes for details on Unemployment Insurnace tax rate calculations. New employers The tax rate for new employers is based on the average tax rate for the employer’s industry. This ensures that each new employer has a rate that aligns with other businesses in their industry. Industries are defined by the North American Industry Classification System (NAICS).
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