On a vote of 66 – 0, legislation (SF 192) passed the Minnesota Senate to temporarily freeze the unemployment insurance experience rating some businesses are required to pay at 2019 rates for rates payable in 2021. It also freezes taxable wages to $35,000.
An experience rating a business pays is dependent on their workers utilization of the unemployment insurance program. The more their workforce utilizes the program the higher the businesses tax rate or experience rating. The pandemic has forced many businesses to close, through no fault of their own, for an extended period of time resulting in layoffs. This proposal would hold their experience rating (tax rate) harmless, reducing some economic uncertainty facing our small businesses as we begin to recover from the pandemic.
Follow this link for more information on unemployment insurance in Minnesota.
