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Process tax rate buydown

A tax rate buydown is an option employers have to make a payment to reduce their tax rate.

If your account has been charged with benefits paid to former employees, you can voluntarily buy back all or part of the charges to reduce your tax rate. If you make a partial buydown, the most recent charges in the experience period will be canceled first. For more information about Tax Rate Buydown go to Employer Handbook: Tax Rate Information, Tax Rate Buydown page. The tax rate buydown must be received within 120 calendar days after the beginning of the calendar year for which the tax rate is effective. All buydown payments must be made electronically using the process listed below. This option is not available if there is past due debt on your account.

NOTE: The Tax Rate Buydown option will only display during the first 120 days of the calendar year - through April 30th.

There is a calculation tool in your online employer account to assist you, see Forecast Tax Calculator.

To buydown your tax rate:

  1. Log in to your account at www.uimn.org
  2. On My Home Page, click Account Maintenance.
  3. Click Process Tax Rate Buydown.
  4. Enter the amount you want to pay in the Tax Rate Buydown Payment field, and then click Calculate.

    The adjusted Experience Rate will display along with the Tax Rate Buydown Payment amount .

  5. If the Tax Rate Buydown Payment and adjusted Experienc Rate are acceptable, click Next.
    -or-
    If not acceptable, click Previous to perform another calculation.

  6. Check the checkbox indicating that you agree to make a payment for the Tax Rate Buydown.
  7. Click Make Payment.
  8. Enter the bank account information, and then click Next.
  9. Confirm your banking information and the payment effective date, and then click Submit. The Receipt of Payment page will display.

    To print the receipt, click Printer Friendly Receipt.

  10. Click Next. The current year's Unemployment Insurance (UI) Determination of Tax Rate page will display.
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