Minnesota Governor Tim Walz has signed a bill passed by Minnesota state with benefits you need to be aware of. Details are still coming out as they set up applications and make retroactive changes; here is what we know.
Frontline Worker Pay
Are you a frontline worker? Did you work at least 120 hours doing so between March 15, 2020, and June 30, 2021? You may be eligible for Frontline Worker Pay! They are currently creating an application process for this one-time payment. They will be providing all eligible applicants an equal payment, with a maximum of $1,500. Employers will need to pay attention for when Minnesota releases this application, as they are required to notify employees with 15 days of its availability.
Unemployment Insurance Tax Retroactive Rate Change
As of 1-1-2022, Minnesota UI rates included a 0.5% base tax rate, with 14% in additional and 1.8% in special assessments. While the 1.8% is a drop compared to 2021’s 4%, with the additional tax, these rates we much higher than what we have seen in our state’s past. Given that the effects of COVID are still very much around, the state has decided to retroactively lower rates for 2022. They have done away with the additional tax and special assessment tax, and they have brought the base tax rate back down to 0.1%.
Minnesota has explained that they will be doing this retroactive change on their end. Since the first quarter has already been completed and paid, you will see a credit to next quarter’s tax liability. If you would prefer your credit to be refunded, you can find that information here.
For more information, you can visit the state website or reach out to us directly.