Officer Only Payroll – MN Unemployment Election of Coverage

If the only employees of the company are the corporate officers and you would like to elect coverage for Minnesota Unemployment, follow the steps below. 

Step 1 — Register for a Minnesota Unemployment Account

Even if the officer is excluded by default, the company must first create an employer account.

1. Go to https://www.uimn.org

Select Employers & Agents

2. Select “Register for an Employer Account”
3. Enter:

• FEIN
• Legal business name
• MN business address
• Date first wages were paid
• Business structure (corporation)
• Ownership information

4. When asked about employees:

• You still list the officer wages
• The system will later classify them as excluded unless you elect coverage

At the end, Minnesota assigns:

✔ Employer account number
✔ Initial tax rate notice

Step 2 — Elect Officer Coverage

After the account exists, you file an Election of Coverage for Owner/Officer.

This is not automatic during registration.

Inside Employer Self-Service:

1. Log in
2. Go to Account Maintenance / Coverage Election
3. Choose: Election to Cover Corporate Officers

You are electing to treat officer wages as covered employment.

Step 3 — Understand the commitment

Once elected:

• Applies to all officers
• Cannot be turned off immediately
• Must stay in place for at least 2 calendar years
• Wages become taxable retroactive to the election date

After election:

✔ You file quarterly wage reports
✔ Officer wages are reported as covered
✔ Taxes accrue like any other employee

Important timing rule

Election is generally effective:

Beginning of the quarter in which it’s filed
(not retroactive to prior quarters)

So if you want coverage for the year, file early in Q1.

What if you do nothing?

If you register but never elect coverage:

• Officer wages remain excluded
• Quarterly reports show $0 covered wages
• No state UI tax due
• No benefit eligibility

The account stays active but dormant.