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New legislation: 2020 UI experience rates carried into 2021

If you are a taxpaying employer, we normally send you a tax rate determination in the mail every December. We also post that tax rate determination in your online account.

Your 2021 tax rate calculation was temporarily postponed by Executive Order 20-102.

Due to ongoing challenges associated with the COVID-19 pandemic, the Minnesota Legislature recently passed a special law to “carry over” your 2020 employer tax rate into 2021. Your 2021 UI “experience rate” or “new employer rate” will be calculated the same as it was in 2020. The Legislature made this change to ensure that pandemic-related unemployment in 2020 did not affect 2021 tax rates.

Why was this change necessary?

  • Current workload: To calculate your experience rate, we must review every wage detail record, benefit payment, and adjustment to benefit charges associated with your employer account over the last four years. This will be especially difficult for 2020 because of our unprecedented workload. In 2020, we made 14,023,471 benefit payments resulting in 19,864,813 benefit charge transactions – an 8-fold increase compared to 2019.

  • Pending charge adjustments: With more than 1 million applications for unemployment benefits since March 2020, we have had to reassign nearly all UI staff to focus on serving unemployed Minnesotans. This meant that charge adjustment requests from employers (that did not affect an applicant’s benefit payments) have had to be a lower priority.

  • Incomplete information from employers: We have also had limited staffing available to assist employers with their quarterly wage record submissions. This means some employers may still not have submitted all the data we need to accurately calculate their 2021 experience rates.

  • Recent federal legislation: We are currently implementing the recent federal stimulus legislation, which requires dozens of system changes and hundreds of thousands of individual adjustments to applicant accounts.

  • Special CARES Act provisions: Through the CARES Act, Congress has agreed to partially reimburse states for a portion of UI benefit costs. Applying these reimbursements is technically very complicated. This work must be completed before we can relieve benefit charges under state law.

    In addition to federal financial relief, the Minnesota Legislature has directed us to relieve a portion of your UI benefit charges. We will make these adjustments to your account in the coming months, but it will involve another series of complex transactions. We appreciate your patience as we ensure that this critical work is done accurately

We apologize for the delay in sending your tax rate determination this year. We will continue to post updates on with the latest information about your account.

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