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Unemployment tax changes: How they affect you

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.

Law changes:
2022 Base Tax Rate changed from 0.50% to 0.10%
2022 Additional Assessment changed from 14.00% to 0.00%
2022 Special Assessment (Federal Interest Loan Assessment) changed from 1.80% to 0.00%

 

What you need to know

Employers

  • Wage Detail - Your 1st quarter 2022 Wage Detail Report and payment must be received by the department on or before the 1st quarter due date.
  • Initial Amount Due - Your UI tax amount due for 1st quarter 2022 was calculated (using the pre-law-change rates) when you submitted your wage detail report for 1st quarter 2022.
  • Recalculations - We will need to recalculate your UI tax amount for 1st quarter 2022.
    -You will not know your new amount due until we complete the recalculation.
    -The recalculation process cannot start until the bill is signed into law.
    -It will take us several days to complete the recalculations for all 130,000 employers.
    -We will send you a letter and update this website once the recalculation is complete.
  • Credits – If you have already paid the initial amount due for 1st quarter 2022, the recalculation process will create a credit on your UI account.
    -You will be able to see the credit on your account once we let you know that the recalculation is complete. How can I see my credit?
    -Any credits on your account will be automatically carried forward and applied to any future amount due for 2nd quarter 2022.
    -You can also request a refund of the credit amount (see requesting a refund, below).
  • Payments – If you have not already paid the initial amount due for 1st quarter 2022, the recalculation process will simply update the amount due to the new amount.
    -You will be able to see the new amount due once we let you know that the recalculation is complete. How can I see my amount due?
    -You will need to promptly pay the amount due to avoid any late fees or interest being assessed.
  • Refunds – If you have a credit on your account after the recalculation is complete, you can request a refund of that amount. -Learn how to request a refunds
  • -Refunds are not automatic.
    Depending upon the volume and complexity of the refund requests, the refund process could take several months before refund checks are issued.

 

To learn more and find answers to frequently asked questions, click here.

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