Background

 The Minnesota Unemployment Insurance (UI) Tax rate has several components that are used in order to calculate the quarterly employer contribution amounts.  The agency has a Base Rate component that is at .40% for 2009, as well as an assigned Experience Rating.  These two components are added together to equal the UI Tax Rate.  There is also an Additional Assessments rate that is at 14% of UI tax for 2009.      

What do I need to do?

In QuickPayroll, you will need to enter a UI Rate and the Workforce Enhancement Fee rate.  In order to determine the rates to enter in QuickBooks, you will need to have your Unemployment Insurance Tax Rate Notice for the applicable tax year.

In the Total Due Estimator section of your rate notice there is a “roll-up” rate.  For tax year 2009, this “roll-up” rate includes the Additional Assessments rate and the Workforce Enhancement Fee rate of .10%.  The Workforce Enhancement Fee rate needs to be deducted from the “roll-up” rate because it is a separate Payroll Item in QuickPayroll.

For tax year 2009, the rate you will enter in the MN – Unemployment Insurance Payroll Item is the “roll-up” rate less .10% (Workforce Enhancement Fee).