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johnl8
April 10, 2025
Question

How do I add the special additional assessment of 5% in the state of Minnesota for the UI trust fund in the Let's add your Minnesota tax info section?

  • April 10, 2025
  • 2 replies
  • 0 views

The only options of rates to enter are federal loan interest assessment rate, unemployment insurance rate, and workforce development fee rate. Should I just add the 5% to one of these or is there a separate way in the payroll system to address. Appears this is just an assessment for 2025 so assuming it goes away in 2026 but not sure. Any help is appreciated.

2 replies

L
LouiseG12
April 10, 2025
Adding the special additional assessment for the Minnesota Unemployment Insurance (MN UI) trust fund rate is necessary as it helps accurately calculate the state unemployment taxes you owe. Allow me to give additional information regarding this matter, John.

Currently, QuickBooks Online (QBO) Payroll does not support the new 5% MN UI additional assessment. Our payroll team closely monitors updates from the Minnesota Department of Employment and Economic Development (DEED) and is committed to implementing this change as swiftly as possible. However, we do not yet have a specific date when this feature will be implemented.

In addition to this, I recommend consulting to your tax advisor who can provide specific advice on how to handle this situation to ensure all necessary evaluations are thoroughly conducted, which is crucial for compliance and accuracy of your tax calculations and comply with state regulations.

In the meantime, you may consider forwarding your tax notice to us so we can help you more effectively update your tax rates in QBO.

To start this process, please handwrite your Federal Employer Identification Number (EIN) on the first page of your tax notice. If you have multiple discrepancy notices, please send each one individually to facilitate accurate handling.

If you are using our payroll services, follow these steps to upload your notice:

  1. Go to Taxes and select Payroll Tax.
  2. Click on Resources.
  3. Hit Tax Notice.
  4. Follow the instructions displayed on the screen to submit your notice.

Once we receive your tax notice, an email confirmation will be sent to both the Principal Officer and the Primary Admin on record. This email will include a case number and further details concerning the notice.

After our review, a tax specialist will reach out to you via email to provide the resolution, describe any actions taken on your behalf, and outline any necessary next steps. Our Tax Notice team aims to confirm receipt of your document by email within 3-5 business days. If the Principal Officer or Primary Admin not receive this confirmation within the allotted timeframe, please contact our live support to verify that your notice has been received.

For future reference, I will include a series of articles that will give you instant access to your payroll totals, detailed breakdowns of employee taxes and contributions, and the ability to view historical payroll records.


Remember, our dedicated support team is available to assist you with any additional questions or concerns you might have regarding this matter or other features of our service. We are committed to managing your tax updates meticulously and ensuring that your payroll complies with the latest regulations. Have a good one!
J
johnl8Author
April 10, 2025

Thanks for the help Louise. Couple of quick follow ups just to make sure I understand. Sounds like the 5% MN UI additional assessment is not supported yet by QBO but is in the works. If it is not setup by the time we begin payroll, how do we go about covering this? Do we just calculate the amount and pay MN UI directly ourselves? Is there any resources from QBO on how this is handled by current employers in MN at this time while this is not supported?

 

Second item, I am assuming the tax notice being referred to is the determination from MN UI as to what our rates should be. When we get this it sounds like we can just send to QBO through the function showed and will get assistance in making sure we are setup correctly. Is that correct? If so, we will do so when we receive the notice. Is this an option for any type of tax notice we get payroll related as well?

 

Thanks so much for the information.

JoesemM
JoesemM
April 10, 2025

I appreciate your prompt response, Johnl8, and thank you for providing detailed information about your concerns regarding the additional 5% assessment for Minnesota. I'm here to clarify how you can manage this within QuickBooks Online.

 

QuickBooks Online supports the new Minnesota 5% additional assessment, which is automatically triggered when the UI Trust Fund falls below a certain level as of a particular date. No manual action is required from your side as it auto-calculates this assessment. The reply from my colleague LouiseG will be revised to prevent any misunderstandings regarding the new tax rate.

 

If this isn't set up yet when running your payroll, I'd recommend contacting our Live Payroll Support Team. They will assist you in understanding how to manage the calculation and input it into your QuickBooks account. To contact them, click on this article: QuickBooks Online Payroll Support.

 

Yes, you're correct with the second question. Once you have received the tax notice, please contact our Live Support Team, who can assist in setting this up correctly in your system.

 

Additionally, it's important to note that QuickBooks Payroll handles IRS forms 941/944, 940, and W-2, as well as state unemployment insurance, state withholding tax, and applicable local withholding taxes. For notices concerning other business taxes, such as sales tax, corporate income tax, and franchise tax, these should be directed to your accountant or tax advisor. For more details, refer to this link: Send your payroll tax notice.

 

Furthermore, in case you need to edit deductions and manage payroll items, you can open these links for guidance:

 

 

If you have further questions about the new rates for Minnesota or any other inquiries, please do not hesitate to reach out. I'm here to lend a hand. Take good care.

J
johnl8Author
April 10, 2025

Thanks so much for the explanation JoesemM. Very helpful. Just to confirm I am understanding correctly, the additional assessment is just automatically triggered in QBO so there is not a place that I ever have to enter that in QBO and it will just not be removed when it is no longer needed. When you mention if this isn't setup when running your payroll to contact support, is there somewhere I should be looking when running payroll to verify it is setup?

 

Also, thanks for explanation on second part. I think I have it setup correctly but won't hurt to check and get assistance when I do have the actual notice just in case.

 

Thanks for the help.

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