Unemployment Compensation Insurance

  • unemployment compensation

    Minnesota Department of Employment and Economic Development (MN DEED)

    Unemployment Insurance benefits provide a temporary partial wage replacement to workers who become unemployed through no fault of their own. 

    Special Provisions Relating To Governmental Organizations

    Instrumentalities or political subdivisions of Minnesota that have employment in Minnesota are subject to unemployment insurance wage reporting.  These employers are assigned reimbursing accounts unless they elect to pay tax.

    Reimbursable Account Option

    Employers who are eligible for and have elected to reimburse the Minnesota Unemployment Insurance Trust Fund rather than pay quarterly taxes:

    • Pay no quarterly unemployment insurance tax.
    • Must report employment information on a quarterly wage detail report.
    • Must reimburse (pay) the Minnesota Unemployment Insurance Trust Fund the full amount of unemployment benefits paid to former employees based on wages earned while in their employ, regardless of the reasons for separation from work.
    • Receive a Notice of Unemployment Benefits Paid and Reimbursable Bill quarterly listing benefits paid charges.
    • Benefits which are later found to be overpaid by the Department will be credited to the reimbursing employer’s account.

    Third-Party Agent

    An “agent” is an entity that acts on behalf of an employer (the agent’s client) to handle the employer’s Unemployment Insurance (UI) obligations.

    Reference:  Minnesota Statute, Chapter 268 – Unemployment Insurance

             Minnesota Statute 268.052 – Payment to Trust Fund by State and Political Subdivisions.

             Minnesota Statute 471.981 – Self-Insurance Coverage by Political Subdivision.

    For more information - http://www.uimn.org/uimn/