What is a tax rate buydown?
If your account has been charged with UI benefits paid to former employees, and your account has no amount past due, you may voluntarily buy down all or part of the charges to reduce your tax rate. If you make a partial buydown, the most recent charges in the experience rating period will be cancelled first. A 25 percent surcharge must be included in the tax rate buydown. Beginning January 1, 2009, a calculation tool will be available on your online account. Select Account Maintenance and then select Process Tax Rate Buydown. For step-by-step instructions on how to complete a Tax Rate Buydown, click on User Guide at www.uimn.
If your account has been charged with UI benefits paid to former employees, and your account has no amount past due, you may voluntarily buy down all or part of the charges to reduce your tax rate. If you make a partial buydown, the most recent charges in the experience rating period will be cancelled first. There is no buydown surcharge in 2011. Buying down your tax rate saves most employers up to 25% of UI taxes owed and lowers their UI tax rate. Beginning January 1, 2011, a calculation tool will be available in your online account under Account Maintenance. See the User Guide at www.uimn.org for instructions on how to complete a tax rate buydown.
