Check out some details about the Minnesota Unemployment Surcharge.
Unemployment Tax Rate Factors for 2021
- Taxable wage base: $35,000 (did not change from 2020)
- Base tax rate: 0.10% (did not change from 2020)
- Experience rate: varies per employer (see below)
Due to ongoing challenges associated with the COVID-19 pandemic, the Minnesota Legislature recently passed a special law to “carry over” your 2020 Unemployment (UI) tax rate.
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. 8.90% remains the maximum UI experience rate allowed under Minnesota law.
Assessments for 2021
- Workforce Development Assessment (not a UI tax) – 0.10% of taxable wages
- *New for 2021* Federal Loan Interest Assessment: After your quarterly amount due is calculated, we multiply that amount by 4%. The 4% is NOT applied to your full taxable wages, only to the amount due.
There is no Additional Assessment for 2021.
Questions on MN Unemployment and how it affects your business? Contact Lori at (320) 214-2906.
