Minnesota workers who leave their jobs through no fault of their own are usually eligible for unemployment insurance benefits. The state unemployment insurance department offers benefit payments while you are searching for another job. The amount you receive per week depends on several factors. The biggest factor is how much you made during the previous 15 months or so. Other factors include whether you owe back child support and how much you withhold for income taxes.
Base Period Wages
The biggest determining factor on what your weekly Minnesota unemployment insurance benefit will be is your previous earnings. From the date you filed for unemployment, count back through the previous five full calendar quarters. The first four quarters are your base period. The money you earned during that time determines your weekly benefit. You weekly benefit will be about half of the average earning during that period.
As of 2010, Minnesota has state minimums and maximums for weekly benefit payouts. This is to prevent those who qualify for unemployment but did not make much money from receiving a payment not worth the effort to send. On the other hand, if you made a significant salary during your base period, the benefit maximum prevents you from receiving an unemployment payment of thousands of dollars each week. The minimum is $50 per week and the maximum is $578 per week. If half of your average weekly salary during the base period falls outside of these guidelines, your payment will be adjusted to fit within them.
In an effort to ensure that child support payments remain current, Minnesota deducts any overdue payments from your weekly benefit amount. This applies to back child support that's due in any state. Depending on the amount owed, either 50 percent or 100 percent will be deducted from your weekly payment until your child support payments are caught up or your unemployment benefits run out.
Unemployment benefits count as taxable income for the year. During the following tax season, you will be required to pay taxes on these benefits to both federal and state revenue agencies. You decide how much of the taxes will be withheld from your benefit payments. When you make your initial claim for unemployment, you’ll designate how much money to withhold and you can change it any time afterward by logging onto the Minnesota Unemployment Insurance website. If you haven’t withheld enough money, you’ll have to pay the difference during the following tax season.