Minnesota Session Laws - 2016, Regular Session

CHAPTER 81--S.F.No. 2891

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

Presented to the governor March 24, 2016

Signed by the governor March 24, 2016, 5:46 p.m.