Legislative change leads to $346.5 million in savings for MN businesses
Senator Vicki Jensen (DFL-Owatonna) co-authored legislation last session to reduce the Unemployment Insurance tax for businesses to 0.1% of taxable wages. According to a recent release by the Minnesota Department of Employment and Economic Development (DEED) this change will save $346.5 million over two years (starting in 2014).
“I was happy to co-author this legislation,” said Sen. Jensen. “With the economy and unemployment numbers continuing to improve, it was time to give our businesses a boost as well.”
As unemployment numbers climbed during the nation’s recession, so did the need for temporary jobless benefits to workers who were laid off. The state responded by raising the unemployment insurance tax rate on businesses and borrowed money from the federal government. With Minnesota’s unemployment rate hitting its lowest point in nearly a decade, legislators were able to reduce the tax rate.
“It has been a difficult few years for job seekers and businesses alike,” said Sen. Jensen. “This legislation is another sign of the progress we are making here in Minnesota. We’re not completely out of the woods. There are many businesses still healing, but the good news is starting to add up.”
For more information on this legislation, or any state policy concerns, Sen. Jensen can be contacted via email at firstname.lastname@example.org or by calling 651-296-9457.