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May 13, 2022

Important updates to state tax rates for Minnesota

  • May 13, 2022
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On Monday, 5/2/2022, Governor Walz signed a bill removing the Minnesota Additional Assessment and Federal Loan Assessment unemployment taxes for 2022. Both taxes have changed to 0.0%, retroactive to 01/01/2022. Your overall State Unemployment Insurance (SUI) rate has changed as well, also retroactive to 01/01/2022.

If QuickBooks files and pays taxes automatically on your behalf (QuickBooks Desktop Assisted Payroll and QuickBooks Online Payroll where "Payroll Setting" -> "Taxes and form" is "ON"), we will update all your tax rates and correct the year-to-date SUI and assessment taxes. If you previously closed your books for the first quarter, please edit the closing date to 12/31/2021. If your books are closed for the first quarter, we will not be able to correct the year-to-date tax amounts. The only other action required for your business will be to request a refund via the agency site for any tax overpaid in the first quarter. The agency expects to reflect any credits online in the coming weeks. 

If your business manages tax payments and filings in QuickBooks, log in to the agency site and confirm your 2022 base SUI tax rate. After identifying your tax rate, update your rate in payroll by contacting support. Please make sure your rate is updated in payroll by 6/20/2022. 

QuickBooks will correct the year-to-date Additional Assessment and Federal Loan Interest Assessment taxes. If you previously closed your books for the first quarter, edit the closing date to 12/31/2021. If your books are closed for the first quarter, we can not correct the tax amounts.

The Minnesota Department of Labor will apply any first-quarter credits to your account. Your business can request a refund via the agency site. QuickBooks will mark any first quarter overpayment in your account as a refund to clear out the overpayment in payroll. For more information on the rate changes, visit the Minnesota Unemployment site.

We'll keep you posted on all state tax rate changes and what you need to do.

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