1997 Minnesota Statutes

     268.145 Income tax withholding. 

    Subdivision 1.    Notification.  (a) Upon application 
 for a reemployment insurance account, the claimant shall be 
 informed that: 

    (1) reemployment insurance benefits are subject to federal 
 and state income tax; 

    (2) there are requirements for filing estimated tax 
 payments; 

    (3) the claimant may elect to have federal income tax 
 withheld from benefits; 

    (4) if the claimant elects to have federal income tax 
 withheld, the claimant may, in addition, elect to have Minnesota 
 state income tax withheld; and 

    (5) at any time during the benefit year the claimant may 
 change a prior election. 

    (b) If a claimant elects to have federal income tax 
 withheld, the commissioner shall deduct that percentage required 
 by the Internal Revenue Code.  If a claimant, in addition to 
 federal income tax withholding, elects to have Minnesota state 
 income tax withheld, the commissioner shall make an additional 
 five percent deduction for Minnesota state income tax.  Any 
 amounts deducted pursuant to sections 268.155, 268.165, 268.18, 
 268.182, and 268.184 have priority over any amounts deducted 
 under this section.  Federal income tax withholding has priority 
 over Minnesota state income tax withholding. 

    (c) An election to have federal income tax, or federal and 
 Minnesota state income tax, withheld shall not be retroactive 
 and shall only apply to benefits paid after the election. 

    Subd. 2.    Transfer of funds.  The amount of any 
 benefits deducted under this section shall remain in the 
 Minnesota reemployment insurance fund until transferred to the 
 federal Internal Revenue Service, or the Minnesota department of 
 revenue, as an income tax payment on behalf of the claimant. 

    Subd. 3.    Correction of errors.  Any error which 
 resulted in underwithholding under this section shall not be 
 corrected retroactively. 

    Subd. 4.    Federal requirement.  The commissioner shall 
 follow all federal requirements for the deduction and 
 withholding of federal and Minnesota state income tax from 
 reemployment insurance benefits. 

    Subd. 5.    Application.  This section applies to any 
 payments under federal or state law as compensation, assistance, 
 or allowance with respect to unemployment. 

    HIST: 1996 c 417 s 17; 1997 c 66 s 79