2005 Minnesota Statutes

     268.053 Payment to trust fund by nonprofit organizations.

    Subdivision 1.    Election.  (a) Any nonprofit 
 organization that has employees in covered employment shall pay 
 taxes on a quarterly basis pursuant to section 268.051 unless it 
 elects to make reimbursements to the trust fund the amount of 
 unemployment benefits charged to its reimbursable account under 
 section 268.047. 

    The organization may elect to make reimbursements for a 
 period of not less than two calendar years beginning with the 
 date that the organization was determined to be an employer with 
 covered employment by filing a notice of election not later than 
 30 calendar days after the date of the determination. 

    (b) Any nonprofit organization that makes an election will 
 continue to be liable for reimbursements until it files a notice 
 terminating its election not later than 30 calendar days before 
 the beginning of the calendar year the termination is to be 
 effective.  

    (c) A nonprofit organization that has been making 
 reimbursements that files a notice of termination of election 
 shall be assigned the new employer tax rate under section 
 268.051, subdivision 5, for the calendar year of the termination 
 of election and until it qualifies for an experience rating 
 under section 268.051, subdivision 3. 

    (d) Any nonprofit organization that has been paying taxes 
 may elect to make reimbursements by filing no less than 30 
 calendar days before January 1 of any calendar year a notice of 
 election.  Upon election, the commissioner shall establish a 
 reimbursable account for the nonprofit organization.  An 
 election shall be allowed only if the nonprofit organization 
 has, since the beginning of the experience rating period under 
 section 268.051, subdivision 3, paid taxes equal to or more than 
 125 percent of the unemployment benefits used in computing the 
 experience rating.  In addition, any unemployment benefits paid 
 after the experience rating period shall be transferred to the 
 new reimbursable account of the nonprofit organization.  If the 
 amount of taxes paid since the beginning of the experience 
 rating period exceeds 125 percent of the amount of unemployment 
 benefits paid during the experience rating period, that amount 
 in excess shall be applied against any unemployment benefits 
 paid after the experience rating period.  The election shall not 
 be terminable by the organization for that and the next calendar 
 year. 

    (e) The commissioner may for good cause extend the period 
 that a notice of election, or a notice of termination, must be 
 filed and may permit an election to be retroactive. 

    (f) A notice of election or notice terminating election 
 shall be filed by electronic transmission in a format prescribed 
 by the commissioner. 

    Subd. 2.    Determination, protest, and appeal.  The 
 commissioner shall notify each nonprofit organization by mail or 
 electronic transmission of any determination of its status as an 
 employer with covered employment and of the effective date of 
 any election or termination of election.  The determinations 
 shall be final unless a protest is filed within 30 calendar days 
 after sending of the determination.  Upon receipt of a protest, 
 the commissioner shall review all available evidence and 
 determine whether an error has been made.  The commissioner 
 shall send to the nonprofit organization, by mail or electronic 
 transmission, an affirmation or redetermination.  The 
 affirmation or redetermination shall be final unless an appeal 
 is filed within 30 calendar days of sending the affirmation or 
 redetermination.  Proceedings on the appeal shall be conducted 
 in accordance with section 268.105. 

    Subd. 3.    Payments.  (a) Reimbursements, in the amount 
 of unemployment benefits charged to the reimbursable account, 
 during a calendar quarter, must be received by the department on 
 or before the last day of the month following the month that the 
 notice of unemployment benefits paid is sent pursuant to section 
 268.047, subdivision 5.  

    (b) Past due reimbursements shall be subject to the same 
 interest charges and collection procedures that apply to past 
 due taxes. 

    (c) If any nonprofit organization is delinquent in making 
 reimbursements, the commissioner may terminate the 
 organization's election to make reimbursements as of the 
 beginning of the next calendar year, and the termination shall 
 be effective for that and the following calendar year.  A 
 nonprofit organization that has its election terminated under 
 this paragraph shall be assigned the new employer tax rate under 
 section 268.051, subdivision 5, until the organization qualifies 
 for an experience rating under section 268.051, subdivision 3. 

    Subd. 4.    Application.  For purposes of this section, 
 a nonprofit organization is an organization, or group of 
 organizations, described in United States Code, title 26, 
 section 501(c)(3) of the Internal Revenue Code that is exempt 
 from income tax under section 501(a). 

    Subd. 5.    Compromise.  The compromise authority set 
 out in section 268.067 applies to this section. 

    HIST: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 
 554 s 3; 1943 c 650 s 2; 1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 
 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s 
 3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 
 1955 c 380 s 2-4,6; 1957 c 25 s 1; 1957 c 873 s 2; 1959 c 702 s 
 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 
 617 s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 
 854 s 6; 1971 c 860 s 1; 1971 c 942 s 3-6; 1973 c 254 s 3; 1973 
 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 
 6-11; 1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 
 1979 c 181 s 4-8; 1980 c 508 s 2-7; 1Sp1982 c 1 s 5-12; 1983 c 
 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 
 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 
 c 242 s 1; 1987 c 362 s 9-12; 1987 c 385 s 10-18; 1989 c 65 s 
 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 
 1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 
 s 25,79,80; 1999 c 107 s 30; 2000 c 343 s 2-4; 2001 c 175 s 
 20,21; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 34-36; 2005 c 112 
 art 2 s 13 

*   NOTE:  The amendments to subdivisions 1, 2, and 3, by Laws 
*2004, chapter 183, sections 34 to 36, are effective July 1, 
*2005.  Laws 2004, chapter 183, sections 34 to 36, the effective 
*dates.