Virtually all employers are subject to unemployment insurance taxes under the Minnesota Unemployment Insurance Law (MN Stat. Sec. 268.001 et seq.). Under the law, the term “employer” means any person who has had one or more employees during the current or the prior calendar year, including any person who has elected to be subject to the law and a joint venture composed of one or more employers (MN Stat. Sec. 268.035).
Additionally, certain employee leasing companies, professional employer organizations, or similar entities that have been assigned applicable tax accounts may also be considered employers under the law.
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students working for work-study programs;
• Real estate and insurance salespersons (unless performed by a corporate officer);
• Certain newspaper distributors (e.g., minors);
• Employees of churches or associations of churches or other organizations operated exclusively for religious purposes (MN Stat. Sec. 268.035).