Minnesota Unemployment Reporting Requirement for Owners/Officers

Owners are Potentially Exempt

The following owners/officers are exempt from Minnesota Unemployment Insurance Tax according to Minnesota Law ยง268.035, Subd.20 (29):

  • Corporate officers owning 25%  or more of a corporation directly or indirectly through another legal entity such as a subsidiary or holding company.
  • Members of a limited liability company (LLC) who own 25% or more of the LLC directly or indirectly through another legal entity such as a subsidiary or holding company.
Do not report these owners/officers or their wages on your Unemployment Wage Detail Report unless you have elected optional coverage for them.

How to elect Optional Coverage for Owners/Officers


Employers can elect to cover the wages of owners/officers either online at http://www.uimn.org/employers/employer-account/self-service/index.jsp or by phone by calling 651-296-6141, press 4 to speak with a representative.



How to update these Owners in Zenefits:


To mark an owner exempt from Minnesota Unemployment and Minnesota Unemployment Surcharge, click on the Directory app, then click on the employee's name.  On their Tax Info page, scroll down to the Exemptions table, and click Edit to set up the employee's exemptions along with a proper effective date. For a walk-through of this process you can go to this help center article

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