SF 2891

as introduced - 89th Legislature (2015 - 2016) Posted on 03/30/2016 10:05am

A bill for an act
relating to unemployment insurance; modifying tax liability of employers;
amending Minnesota Statutes 2014, section 268.051, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 268.051, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Unemployment insurance tax limits. new text end

new text begin (a) If the balance in the trust fund
on December 31 of any calendar year is four percent or more above the amount equal to
an average high cost multiple of 1.0, future unemployment taxes payable must be reduced
by all amounts above 1.0. The amount of tax reduction for any taxpaying employer is
the same percentage of the total amount above 1.0 as the percentage of taxes paid by the
employer during the calendar year is of the total amount of taxes that were paid by all
nonmaximum experience rated employers during the year.
new text end

new text begin (b) For purposes of this subdivision, "average high cost multiple" has the meaning
given in Code of Federal Regulations, title 20, section 606.3, as amended through the
effective date of this section. An amount equal to an average high cost multiple of 1.0
is a federal measure of adequate reserves in relation to the state's current economy.
The commissioner must calculate and publish, as soon as possible following December
31 of any calendar year, the trust fund balance on December 31 along with the amount
an average high cost multiple of 1.0 equals. Actual wages paid must be used in the
calculation and estimates may not be used.
new text end

new text begin (c) This subdivision does not apply to employers that were at the maximum
experience rating for the year, nor to high experience rating industry employers under
subdivision 5, paragraph (b). Computations under paragraph (a) are not subject to the
rounding requirement of section 268.034. The refund provisions of section 268.057,
subdivision 7, do not apply.
new text end

new text begin (d) The unemployment tax reduction under this subdivision applies to taxes paid
between March 1 and December 15 of the year following the December 31 computation
under paragraph (a).
new text end

new text begin (e) The amount equal to the average high cost multiple of 1.0 on December 31,
2012, must be used for the calculation under paragraph (a) but only for the calculation
made on December 31, 2015. Notwithstanding paragraph (d), the tax reduction resulting
from the application of this paragraph applies to unemployment taxes paid between July 1,
2016, and June 30, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from December 31,
2015.
new text end