A Guide To STARTING A BUSINESS IN MINNESOTA 42nd Ed 2024

Records True and accurate employment records must be kept by all Minnesota employers, whether or not they are covered under the Minnesota Unemployment Insurance Law. Since an employer’s reporting requirements cannot be properly determined without such records, the records must be open to inspection as requested by the Audits & Special Accounts Section of the Minnesota Unemployment Insurance Program. The law provides penalties and administrative fees to ensure compliance. Records should contain the following information for each employee: • full name;

• complete home address; • Social Security number;

• the beginning and ending dates of the pay period and the date of payment; • the days and number of hours in which the individual performed services; • the location where the services were performed; • the amount of gross wages paid and wages due but not paid for services performed; • the rate and base unit of pay; • any amounts paid as allowances or reimbursement for expenses; and • the date of, and reason for, an employee’s separation from employment. For services performed both in Minnesota and outside Minnesota the records must also include: • the state in which the employer maintains a base of operations used by the individual; • the state from which the services are directed and controlled; and • a list of the states in which the individual performs services, other than temporary or incidental services, and the dates services were performed in each state. Wages paid and wages due but not paid must be broken down to show the character of each payment. For example, meals, lodging, bonuses and gifts must be shown separately. Employment records must be kept for a period of not less than four years in addition to the current calendar year. Personal Liability for Payment of Unemployment Insurance Tax In the event that an employer fails to pay its unemployment insurance tax, its individual officers, directors, governors, members, partners, or owners may be held personally liable for any unpaid taxes, interest and fees.

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