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Unemployment Insurance tax changes

Last updated: 6/17/22 at 2:30 p.m.

On April 29, 2022, the Minnesota Legislature passed, and Governor Walz 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%

Implementing the law change

The amount of tax you owe is immediately calculated when you submit your wage detail for the quarter. Wage Detail Reports and payments for 1st quarter 2022 were due by May 2, 2022.

Since nearly all Minnesota employers already submitted their wage detail for the first quarter of 2022, this meant that the amount they owed was already calculated and needed to be recalculated using the new rates. This recalculation of 1st quarter 2022 UI taxes due is now complete.

Employers who already made their first quarter 2022 tax payments before the recalculation was complete, will likely have a credit on their account. The credit will automatically be carried forward and used to reduce the amount due for second quarter 2022.

Note: DEED is not currently able to issue some refunds due to an issue with the Trust Fund Replenishment bill that was passed. Any credits resulting from the tax rate changes that cannot be refunded will remain as credits that will be applied to your future UI tax bill.

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