Reference: Minnesota Law, §268.051 Subd.4
When an employer acquires all or part of a business that was required to pay unemployment insurance taxes in Minnesota, it can affect their tax rate if there is 25 percent or more common ownership between the two businesses. If both entities are publicly traded, all or part of the predecessor's taxable wages and benefits paid charges may be transferred to the successor's employer account.
Under Minnesota Unemployment Insurance Law, the predecessor's taxable wages and benefits paid charges are transferred effective the date of the acquisition or merger. The Minnesota Unemployment Insurance (UI) Program recalculates the successor's tax rates effective the first day of the calendar quarter following the effective date of the transfer. Reference the Experience Rating Successorship section of this handbook for more information.
Employers must notify the UI Program electronically using the Employer Self-Service System within 30 calendar days of the acquisition or merger.
This handbook is based on current UI legislation; statements are intended for general information and do not have the effect of law. The Minnesota Unemployment Insurance Law - MN Statutes 268.001 to 268.23 and Administrative Rules 3310 and 3315 - can be accessed through our website at www.uimn.org by clicking Employers & Agents, Help and Support, then the UI Law link.
