How are UI rates determined for existing employers?
Unemployment insurance tax rates are assigned each calendar year. Rates for existing employers are made up of two parts; the base rate, which is the same for all employers, and the experience rating, which can be different for each employer. The base rate is set by state statute and fluctuates with the balance in the Minnesota UI Trust Fund. The experience rate is based on each employer’s 4-year history of employment and layoffs (i.e. those where UI Benefits were paid), up to the maximum rating allowed by law. The amount due each quarter is calculated as follows: Quarterly UI Tax + Additional Assessment + Workforce Development Fee. Reference the Experience Rate Information section of the Employer Handbook for more information.
