Change from a taxpaying employer to a reimbursing employer
IMPORTANT
Only government employers, Indian tribes, and nonprofit 501(c)(3) organizations that currently pay unemployment insurance tax may elect to become reimbursing employers.
- Submit your request by the last day of the calendar quarter before the quarter you want the change to start.
- The change takes effect at the start of the next calendar quarter.
- You must remain a reimbursing employer for at least 24 months.
- Government employers and tribes that elected to pay unemployment taxes must have done so for at least 24 months (eight calendar quarters) before they can switch.
You cannot change your status if there is any debt on your account. To learn how to check for debt, see Review Account Balance.
To change from a taxpaying employer to a reimbursing employer:
- Log in to your account at ui.mn.gov
- On My Home Page, select Account Maintenance.
- Select Change Taxpaying to Reimbursing. The Change Taxpaying to Reimbursing page displays the advantages and disadvantages of both the Taxpaying Method and the Reimbursing Method.
- Review the information.
- Select the Next button.
The Change of Business Status-Taxpaying to Reimbursing page opens. An amount due (based on previous benefits paid charges and taxes paid) or a credit that can be applied to future benefits paid charges will display. If an amount is due, it must be paid before the election to become a reimbursing employer can occur.
- Select the Submit button.
If your newly registered Minnesota Unemployment Insurance Employer Account has been set up as taxpaying you have 30 days from the date of registration to change your election to reimbursing. All elections to change coverage from taxpaying to reimbursing cannot be canceled for at least two calendar years.