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The unemployment insurance division provides a temporary partial wage replacement to Minnesota workers who become unemployed through no fault of their own. It is an economic stabilizer and stimulator during economic downturns and helps maintain an available skilled workforce. [3]
Laid-off employees were immediately eligible for unemployment benefits, and continued to receive health insurance, costing the state millions a week. [11] [20] (However, Minnesota Unemployment Insurance has a waiting week, so laid off workers were only eligible to collect unemployment for two weeks.)
Unemployment insurance is funded by both federal and state payroll taxes. In most states, employers pay state and federal unemployment taxes if: (1) they paid wages to employees totaling $1,500 or more in any quarter of a calendar year, or (2) they had at least one employee during any day of a week for 20 or more weeks in a calendar year, regardless of whether those weeks were consecutive.
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The United States Department of Labor (DOL) is one of the executive departments of the U.S. federal government. It is responsible for the administration of federal laws governing occupational safety and health , wage and hour standards, unemployment benefits , reemployment services, and occasionally, economic statistics.
Reynolds is proposing that the legislature “reduce the unemployment insurance payments that employers make by half.” This means that the maximum tax rate on all tables would be lowered to 5.4%.
The Minnesota Department of Labor and Industry is a cabinet-level agency in the State of Minnesota. Background