WINONA, Minn. (KWNO)-Local leaders are continuing their push to replenish the state’s unemployment insurance fund.
Minnesota businesses are facing a payroll tax increase after the Minnesota House failed to pass legislation that would’ve made the account solvent before a mid-March deadline. Winona Area Chamber of Commerce President Christie Ransom tells KWNO she polled local businesses to see what their payroll tax increase is looking like.
“I think the lowest tax increase we heard of was a 40% tax increase over quarter one last year, The highest is 233%, 214%, many at 50%, lots that have doubled,” Ransom said.
The deadline to pay the new payroll taxes is April 30. Ransom said businesses could be reimbursed for the extra payments if lawmakers come to an agreement before then.
Ransom says she passed the results onto Rep. Gene Pelowski, who has said throughout the legislative session that he supports fully replenishing the unemployment fund. He told KWNO he plans to share the data Ransom collected with fellow House lawmakers.
“I’m hopeful that other members are getting this from their local chambers and businesses too,” Pelowski said. The numbers are startling both in percentages and in size and certainly, we just don’t need any type of an impact on business now as they’re coming out of the pandemic.”
House DFL leaders say they will pass a bill to infuse over $1 billion into the fund if Senate Republicans agree to increase money allocated for COVID worker front line bonuses from $250 million to $1 billion. The Senate passed a bill that allocates over $2.7 billion into the fund in February.
The fund was heavily used when the COVID-19 pandemic set in during the spring of 2020.
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