Virtually all employers are subject to unemployment insurance taxes under the Minnesota Unemployment Insurance Law (MN Stat. Sec. 268.001et seq.). Coverage extends to any employer that:
• In the current or preceding calendar year, employed one or more people for some portion of a day in each of 20 different weeks or paid $1,500 or more in wages in any quarter
• Bought the business of a covered employer
• Is a tax-exempt nonprofit organization employing four or more people for some portion of a day in each of 20 different weeks in either the current or preceding calendar year
• Is an agricultural employer that, in either the current or preceding calendar year, paid wages of $20,000 or more in any quarter or employed four or more people for some portion of a day in each of 20 different weeks
• Employed domestic servants who, in either the current or preceding calendar year, earned wages of $1,000 or more in any quarter
• Is subject to the Federal Unemployment Tax Act (FUTA)
Any employer not otherwise covered may voluntarily elect to be covered by the law. Governmental bodies are covered by the law; however, they do not pay unemployment taxes but are required instead to reimburse the state fund for benefits paid out on their behalf. Indian tribal governments and nonprofit organizations may elect to pay reimbursements rather than unemployment taxes.
There are a few limited categories of employment for which no tax is imposed. Excepted from coverage are services performed by:
• Employees of churches or associations of churches or other organizations operated exclusively for religious purposes
• Participants in sheltered workshops or government-funded unemployment work-relief or work-training ...