A UI Trust Fund fix was recently enacted and the new law impacts every employer in the state. Unfortunately, this change happened after employers were billed under the old tax rates and many businesses have already paid these higher taxes. Earlier today, the Chamber hosted a webinar featuring DEED Commissioner Steve Grove on employers’ UI tax bills, as well as Commissioner Roslyn Robertson of the Minnesota Department of Labor and Industry on frontline worker bonuses.
Per DEED on unemployment insurance tax changes:
- On Saturday, May 7, DEED recalculated the amount of first quarter 2022 taxes for about 113,000 employers.
- Because most employers had already reported their wage detail and made their first quarter 2022 tax payments, the recalculation created credits on their UI accounts.
- Credits can be left on your UI account or you can request a refund. Refunds will take at least a couple months to fully process.
Visit https://uimn.org/employers/index.jsp to log in and view your credit and click here for FAQ on the UI tax changes.
Per DLI on frontline worker bonuses:
- Within 15 days after the application period is opened, employers in the 15 identified sectors must provide notice to all current workers who may be eligible for payments of the assistance available to them and how to apply for payments.
- More specificity regarding eligibility details for covered jobs will be provided during the application process.
- DLI is currently developing a form that can be used by employers to meet the notice obligation and it will be available via their frontline worker page when it is complete.
Visit https://frontlinepay.mn.gov for more details and to sign up for email notifications once further details and timelines as well as the employer notice form are released.
Stopping the UI payroll tax increases was a major victory, but with a record budget surplus, are more tax cuts on the horizon?
The Senate unveiled their full omnibus tax bill on Sunday containing $3.4 billion in tax relief in FY 2023 and $5.2 billion in FY 24/25 biennium. This bill includes the social security income tax full exclusion and bottom tier income tax rate reduction from 5.35% to 2.8% that the Senate passed earlier. This bill also includes other important provisions to help improve Minnesota’s business competitiveness including full phase out of state business property tax levy (over 10 years), an increase in the research and development tax credit from 4% to 4.25%, an increase in the angel tax credit, new paid leave tax credit for small employers (under 50 employees) up to $3,000 per employee, fixes to pass-through entity election and federal conformity updates.
Click here to watch the Chamber’s Beth Kadoun testify in favor of phasing out the state business property tax levy.
The Senate is planning a vote on May 11 on the Senate floor and then the tax bills will go to conference committee for final negotiations. The final amount of tax relief including how much will be one-time versus permanent will all be part of the global end-of-session negotiations with Governor Walz, House DFL leadership and Senate Republican leadership.