The state recently sent employers notice of adjustments, including outstanding balances. Cities have until March 25 to question the balance due.
In 2020, the Minnesota Unemployment Insurance program temporarily turned off billing for reimbursing employers, including cities, but the billing will resume in April.
The billing was turned off while adjustments were made due to the pandemic by applying all available federal and state relief to reimbursing employer’s accounts. The Minnesota Department of Employment and Economic Development (DEED) recently completed this work and mailed notices to all affected employers summarizing the adjustments that were made to their accounts.
Federal financial relief
Congress authorized federal funding to reimburse states for certain unemployment costs during the pandemic. Federal financial relief was applied to reimbursing employer accounts for both 2020 and 2021. Relief occurred even when the employee left employment prior to or during the pandemic, but not because of the pandemic, and was applied as follows:
- 100% of non-payable weeks paid between 03/29/2020 and 01/02/2021.
- 100% of Shared Work weeks paid between 03/29/2020 and 09/04/2021. In a Shared Work week, employees work reduced hours during a temporary slowdown and are paid unemployment benefits to offset part of their reduced wages.
- 50% of benefit charges not otherwise relieved for benefits paid for weeks between 03/15/2020 and 04/03/2021
- 75% of benefit charges not otherwise relieved for benefits paid for weeks between 04/04/2021 and 09/04/2021
State financial relief
DEED reviewed records submitted by the employer and former employees to determine if any remaining charges could be relieved.
State law allows DEED to relieve benefit charges when 25% or more of the qualified workers at a site became unemployed due to an “act of nature.” Under this law, the COVID-19 pandemic is considered an “act of nature.”
Remaining balance due
After state and federal relief was applied, some balances remain outstanding. As cities evaluate resources to fund any remaining unemployment balance due, consider that American Rescue Plan Act funds qualifying under the revenue loss provision may be used for general government services. The list of common examples of government services includes general government administration.
What if I disagree?
It is important to review the mailed notice from DEED immediately. Recognizing the pandemic created some unusual situations, DEED offers employers an opportunity to respond if there is something the employer thinks is incorrect or was missed. Keep in mind, relief of charges can only be granted for reasons spelled out in state or federal law.
The request for review must include the following:
- Minnesota Unemployment Insurance account number.
- Name, address, and phone number.
- A listing of the benefit charges you believe were improperly charged to the account, including each applicant’s name, the last four digits of their Social Security Number and the reason you believe the charges were improper.
- Name, title, and signature of the individual requesting the review.
Submissions are only accepted via mail with a postmark date no later than March 25, 2022, to:
MN Unemployment Insurance Program
P.O. Box 4389
St. Paul, MN 55101-4389
Where can I find help?
More information about the financial relief applied to employer accounts, including a step-by-step guide on reviewing your benefit charges, is available online.
If you have questions, contact DEED Customer Service at (651) 296-6141 (press 4 to speak to a representative).