120,000 Minnesota businesses will pay lower unemployment insurance taxes at the beginning of 2014.
Minnesota firms pay a tax on the first $29,000 in annual wages for each employee, with the money going into a pool from which unemployed workers collect benefits.The tax rate moves depending on how many people are filing for unemployment, and the rate will be cut from the maximum 0.5 percent, to the minimum 0.1 percent, effective Jan.1. That was scheduled to happen in 2016 as fewer Minnesotans file for unemployment, but Gov. Dayton and the Minnesota Legislature agreed in the Spring to move the rate cut forward by two years.
Beginning in January, employers will also no longer have to pay an extra 14 percent tacked onto their total unemployment insurance tax bill. That assessment was added during the recession to ensure the state had enough money to cover unemployment benefits for all the people who lost their jobs. (Star Tribune Nov. 20)
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