1999 Minnesota Statutes

     268.145 Income tax withholding. 

    Subdivision 1.    Notification.  (a) Upon filing an 
 application for benefits, the applicant shall be informed that: 

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

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

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

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

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

    (b) If an applicant elects to have federal income tax 
 withheld, the commissioner shall deduct 15 percent for federal 
 income tax, rounded to the nearest whole dollar.  If an 
 applicant also elects to have Minnesota state income tax 
 withheld, the commissioner shall make an additional five percent 
 deduction for state income tax.  Any amounts deducted or offset 
 pursuant to sections 268.155, 268.156, 268.18, and 268.184 have 
 priority over any amounts deducted under this section.  Federal 
 income tax withholding has priority over state income tax 
 withholding. 

    (c) An election to have 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 fund 
 until transferred to the federal Internal Revenue Service, or 
 the department of revenue, as an income tax payment on behalf of 
 the applicant. 

    Subd. 3.    Correction of errors.  Any error that 
 resulted in underwithholding or overwithholding 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 income tax from benefits. 

    Subd. 5.    Effect of payments.  Any amount deducted 
 under this section shall be considered as benefits paid to the 
 applicant. 

    HIST: 1996 c 417 s 17; 1997 c 66 s 79; 1998 c 254 art 1 s 73; 
 1999 c 107 s 53,66