What Minnesota Unemployment Pays You
Minnesota unemployment insurance replaces part of your lost wages while you look for work. The amount you receive depends on how much you earned in the past year, not on how long you've been unemployed or how many dependents you have. The state calculates your weekly benefit amount based on your highest-earning quarter in the year before you file.
The minimum weekly benefit in Minnesota is $38. The maximum weekly benefit changes each year based on the state's average wage. For 2024, the maximum is $863 per week. Most people receive somewhere between these two numbers, depending on their recent earnings history.
You receive benefits for up to 26 weeks in a standard benefit year, though Minnesota may offer extended benefits during periods of high unemployment. The total amount you can draw is your weekly benefit amount multiplied by the number of weeks you remain unemployed, up to the maximum number of weeks available.
Key Takeaways
- Your weekly benefit amount is based on your highest-earning quarter in the past year, not your total annual income.
- Minnesota's minimum weekly benefit is $38 and the maximum for 2024 is $863, though the maximum changes yearly.
- You can receive benefits for up to 26 weeks in a standard benefit year, with possible extensions during high unemployment.
- The state pays you weekly by direct deposit or debit card, and you must report your work search activities to keep receiving payments.
How Minnesota Calculates Your Weekly Benefit
Minnesota uses a specific formula to determine what you receive each week. The state takes your total wages from the highest-earning quarter in the 12 months before you file, divides that by 13, and then multiplies by a replacement rate of roughly 50 percent. This means your weekly benefit is approximately half of what you earned per week during your best quarter.
For example, if you earned $10,000 in your highest quarter, that works out to about $769 per week. Half of that would be roughly $385 per week in unemployment benefits. However, this amount cannot exceed the state maximum ($863 in 2024) or fall below the state minimum ($38).
The state looks at wages from the first four of the five most recent completed calendar quarters before you file. This is called your "base period." If you had a very high-earning quarter followed by lower-earning quarters, Minnesota uses only the highest one, which is why timing of job loss can affect your benefit amount.
When Payments Start and How Often You Receive Them
Minnesota does not pay benefits for the week you file your claim. There is a one-week waiting period before payments begin. After that waiting period, you receive your first payment for the second week of your claim. Payments arrive weekly by direct deposit into your bank account or onto a debit card issued by the state.
You must file a weekly claim to continue receiving benefits. Each week, you report whether you worked, how much you earned, and whether you searched for work. If you worked part-time during a week, Minnesota reduces your benefit by the amount you earned, though you keep a small portion of work earnings without penalty.
Payments are issued every Wednesday for the previous week's claim. If you set up direct deposit, the money typically appears in your account within one business day. If you use the debit card, funds are available when ready.
How Long You Can Receive Benefits
In Minnesota, the standard benefit period is 26 weeks. This means you can draw unemployment for up to six months in a typical year. Once you exhaust your 26 weeks, you must wait until a new benefit year begins (based on when you first filed) before you can claim again, unless extended benefits are available.
Extended benefits become available when Minnesota's unemployment rate is high. During these periods, you may be able to receive an additional 13 weeks of benefits beyond the standard 26 weeks, for a total of 39 weeks. The state activates extended benefits automatically when certain economic thresholds are met, so you do not need to take any action—you are straightforward notified that you now have more weeks available.
Your benefit year runs for 52 weeks from the date you first file. Any weeks you do not use during that year are lost. If you return to work and then lose your job again within the same benefit year, you may be able to claim the remaining weeks from your original claim, rather than starting over.
What Reduces or Stops Your Payments
Minnesota reduces your weekly benefit dollar-for-dollar if you earn wages during the week. However, you can earn up to $50 per week without any reduction. Anything above $50 is subtracted from your benefit. For example, if your weekly benefit is $300 and you earn $100, you receive $250 that week ($300 minus the $50 you are allowed to keep, minus the remaining $50 you earned).
Your payments stop entirely if you refuse a suitable job without good cause, if you are fired for misconduct, or if you quit without a good reason related to work. Minnesota also stops payments if you are receiving workers' compensation, Social Security retirement benefits, or a pension from a former employer. Some pension payments reduce rather than eliminate your unemployment benefit.
If you receive severance pay or vacation pay from your employer, Minnesota may delay your benefits while that money is being paid out. You must report all income to the state, including bonuses, commissions, and self-employment earnings.
Taxes on Unemployment Benefits
Unemployment benefits are taxable income at the federal level. Minnesota does not tax unemployment benefits as state income. When you file your federal tax return, you must report all unemployment benefits you received during the year on Form 1040.
The state does not automatically withhold federal income tax from your unemployment payments. You can request that the state withhold 10 percent of your benefits for federal taxes, which reduces the amount you receive each week but lowers your tax bill when you file. To set up withholding, contact the Minnesota Department of Employment and Economic Development (DEED).
If you do not have withholding and owe taxes on your benefits, you may owe a large amount when you file your return. Setting up withholding or setting aside money each week can help you avoid this surprise.
Frequently Asked Questions
Can I receive unemployment if I was laid off versus if I quit?
You can receive benefits if you were laid off. If you quit, you must have quit for a good reason related to work—such as unsafe conditions, a significant cut in hours, or harassment. Quitting for personal reasons does not make you may be able to access. You can still file and let the state determine whether your reason qualifies.
What happens if I find a part-time job while collecting unemployment?
You can work part-time and still receive unemployment. Minnesota allows you to earn up to $50 per week without any reduction. Earnings above $50 are subtracted from your weekly benefit. You must report all hours and earnings each week when you file your claim.
Does Minnesota unemployment cover self-employed workers?
Standard unemployment insurance does not cover self-employed workers. However, during certain periods (such as the COVID-19 pandemic), the federal government has offered programs for self-employed people. Check with DEED to see whether any such programs are currently available.
What if my employer disputes my claim?
Your employer can contest your claim by providing information to the state about why you left or were separated from the job. If there is a dispute, DEED holds a hearing where you and your employer can present your sides. You have the right to attend and explain your situation. The state makes a final decision based on the evidence.
Can I appeal if my claim is denied?
Yes. If DEED denies your claim, you receive a written decision explaining why. You have 30 days to file an appeal. You can appeal by mail, phone, or online through the DEED website. An appeals examiner reviews your case and may hold a hearing where you can present new information or correct errors.