A lot of employers these days are asking how to lower unemployment taxes in Minnesota. How to lower unemployment taxes in Minnesota depends on an employer’s experience rating. Unfortunately, an inquiry like this depends mostly on the employer and various factors.
In Minnesota, unemployment taxes go up and go down depending an employer’s experience rating. An experience rating is determined by the unemployment office and determines an employer’s unemployment insurance tax.
The unemployment office reviews an employer’s experience rating yearly by or before December 15. Thus, an employer can reduce or lower unemployment taxes in Minnesota by appealing their experience rating.
The highest experience rating an employer can have is 8.9%. If you are a business and your experience rating is 8.9%, you should consider appealing provided you want to lower unemployment taxes in Minnesota. To put this in perspective, new employers are automatically assigned an experience rating of 2.5%.
Again, every December the unemployment office in Minnesota will issue an employer their experience rating. Usually, the experience rating is identified in a one or two page letter.
It is the experience of this law office that employers view their experience rating as gold or unchangeable. This myth is not true and an employer can lower unemployment taxes in Minnesota by appealing their experience rating and not affirming numbers arbitrarily identified by the unemployment office.
In other words, one of the few ways an employer can lower unemployment taxes in Minnesota is by appealing their experience rating.
Yes, your unemployment taxes include references to other numbers like a base tax rate, fees, assessments, a number called your taxable wage base, etc. However, it is critical that these factors be utilized when comparing and contrasting your experience rating.
Therefore, if you are an employer and you are trying to reduce or lower unemployment taxes in Minnesota, please contact this law office for help and or advisement.
