ST. PAUL, Minn. (AP) — Minnesota companies are in for a break in their state unemployment insurance tax rates.
A budget bill approved Wednesday in the House would temporarily chop the rates to produce savings to businesses of $346 million over the next two years.READ MORE: 5 St. Cloud Bank Employees Unharmed After Hourslong Hostage Ordeal; Ray Reco McNeary In Custody
The tax is based on the wages paid at for-profit companies. The bill, which the Senate is poised to pass Thursday, also cuts an additional assessment on businesses.READ MORE: How Much Is A Mother's Work Worth?
The cuts are happening because the unemployment insurance trust fund is brimming. The fund’s financial health has improved as the economy has rebounded. If the fund balance deteriorates, the full rate cut would not happen.MORE NEWS: COVID Restrictions: Walz To End Capacity Restrictions By May 28, Mask Mandate By July 1
The rate cuts have no bearing on the general state budget because the unemployment insurance fund is maintained outside the main treasury.