How are UI rates determined for experience rated employers?
UI experience ratings are calculated each calendar year. Experience rated employer rates are made up of two parts: the base tax rate, which is the same for all employers, and the experience rating, which is based on each employer’s history of taxable wages and benefits paid in their experience rating period, up to the maximum rating allowed by law. For example in 2008 the base tax rate is 0.40% and the experience rate can range from 0.00% to 8.90%. The base rate is set by state statute and fluctuates with the balance in the Minnesota UI Fund. A Workforce Development (Enhancement) Fee and two special assessments are also added to the UI rate. When all of the parts are combined, the total UI rate can be anywhere from 0.5560% to 10.7020% of taxable wages.
UI experience ratings are calculated each calendar year. Experience rated employer rates are made up of two parts: the base tax rate, which is the same for all employers, and the experience rating, which is based on each employer’s history of taxable wages and benefits paid in their experience rating period, up to the maximum rating allowed by law. For example in 2011 the base tax rate is 0.50% and the experience rate can range from 0.00% to 8.90%. The base rate is set by state statute and fluctuates with the balance in the Minnesota UI Fund. A Workforce Development (Enhancement) Fee and two special assessments are also added to the UI rate.
