268.057 Collection of taxes.
Subdivision 1. Amount computed presumed correct. Any amount due from an employer, as computed by the commissioner, shall be presumed to be correctly determined and assessed, and the burden shall be upon the employer to show its incorrectness. A statement by the commissioner of the amount due shall be admissible in evidence in any court or administrative proceeding and shall be prima facie evidence of the facts in the statement.
Subd. 2. Priority of payments. (a) Any payment received from a taxpaying employer shall be applied in the following order:
(1) unemployment insurance taxes; then
(2) special assessment for interest on any federal loan; then
(3) workforce development fee; then
(4) interest on past due taxes; then
(5) penalties, late fees, administrative service fees, and costs.
(b) Paragraph (a) shall be the priority used for all payments received from a taxpaying employer, regardless of how the employer may designate the payment to be applied, except when:
(1) there is an outstanding lien and the employer designates that the payment made should be applied to satisfy the lien;
(2) the payment is for back pay withheld from an applicant pursuant to section 268.085, subdivision 6, paragraph (b);
(3) the payment is specifically designated by the employer to be applied to an outstanding overpayment of unemployment benefits of an applicant;
(4) a court or administrative order directs that the payment be applied to a specific obligation;
(5) a preexisting payment plan provides for the application of payment; or
(6) the commissioner, under the compromise authority of section 268.067, agrees to apply the payment to a different priority.
Subd. 3. Estimating the tax due. Only if an employer fails to make all necessary records available for an audit pursuant to section 268.186, paragraph (b), and the commissioner has reason to believe the employer has not reported all the required wages on the quarterly wage detail reports under section 268.044, may the commissioner then estimate the amount of tax due and assess the employer the estimated amount due.
Subd. 4. Costs. Any person that fails to pay any amount when due under this chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral to any public or private collection agency, or litigation costs, including attorney fees, incurred in the collection of the amounts due.
If any tendered payment of any amount due, is not honored when presented to a financial institution for payment, a fee of $25 shall be assessed.
Costs and fees collected under this subdivision shall be credited to the administration account to be used by the commissioner to ensure integrity in the administration of the unemployment insurance program.
Subd. 5. Interest on amounts past due. If any amounts due from an employer under this chapter or section 116L.20, except late fees under section 268.044, are not received on the date due the unpaid balance shall bear interest at the rate of one and one-half percent per month or any part thereof. Interest assessed, if not a whole dollar amount, shall be rounded down to the next lower whole dollar. Interest collected shall be credited to the contingent account. Interest may be compromised under section 268.067.
Subd. 6. Interest on judgments. Regardless of section 549.09, if judgment is entered upon any past due amounts from an employer under this chapter or section 116L.20, the unpaid judgment shall bear interest at the rate specified in subdivision 5 until the date of payment.
Subd. 7. Credit adjustments, refunds. (a) If an employer makes an application for a credit adjustment of any amount paid under this chapter or section 116L.20 within four years of the date that the payment was due, in a manner and format prescribed by the commissioner, and the commissioner determines that the payment or any portion was erroneous, the commissioner shall make an adjustment and issue a credit without interest. If a credit cannot be used, the commissioner shall refund, without interest, the amount erroneously paid. The commissioner, on the commissioner's own motion, may make a credit adjustment or refund under this subdivision.
Any refund returned to the commissioner shall be considered unclaimed property under chapter 345.
(b) If a credit adjustment or refund is denied in whole or in part, a notice of denial shall be sent to the employer by mail or electronic transmission. Within 30 calendar days after sending of the notice of denial, the employer may protest.
Upon receipt of a timely protest, the commissioner shall review the denial and either affirm the denial or redetermine the credit adjustment or refund. The affirmation of denial or redetermination of the credit adjustment or refund, sent by mail or electronic transmission, shall be final unless an employer files an appeal within 30 calendar days after sending. Proceedings on the appeal shall be conducted in accordance with section 268.105.
Subd. 8. Repealed, 1999 c 107 s 67
Subd. 9. Repealed, 1999 c 107 s 67
Subd. 10. Priorities under legal dissolutions or distributions. In the event of any distribution of an employer's assets pursuant to an order of any court, including any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar proceeding, taxes then or thereafter due shall be paid in full prior to all other claims except claims for wages of not more than $1,000 per former employee, earned within six months of the commencement of the proceedings. In the event of an employer's adjudication in bankruptcy under federal law, taxes then or thereafter due shall be entitled to the priority provided in that law for taxes due any state.
HIST: Ex1936 c 2 s 14; 1941 c 554 s 13; 1943 c 650 s 9; 1945 c 376 s 13; 1949 c 605 s 12,13; 1951 c 55 s 1; 1953 c 97 s 17; 1969 c 9 s 65; 1969 c 567 s 3; 1969 c 854 s 13; 1973 c 254 s 3; 1973 c 720 s 73 subds 2,3; 1975 c 108 s 1; 1975 c 302 s 3,4; 1975 c 336 s 22,23; 1977 c 430 s 25 subd 1; 1978 c 618 s 2; 1978 c 674 s 60; 1980 c 508 s 11-13; 3Sp1981 c 2 art 1 s 33; 1Sp1982 c 1 s 34,35; 1983 c 372 s 39; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 362 s 26; 1987 c 385 s 28-30; 1989 c 65 s 12; 1989 c 209 art 2 s 1; 1993 c 67 s 11; 1994 c 483 s 1; 1995 c 54 s 13-15; 1996 c 417 s 24,31; 1997 c 66 s 66-69,79,80; 1998 c 265 s 14-17,44; 1999 c 107 s 31,32,66; 2000 c 343 s 4; 1Sp2003 c 3 art 2 s 6,20; 2004 c 183 s 37; 2005 c 112 art 2 s 14
* NOTE: The amendment to this section by Laws 2004, chapter *183, section 37, is effective July 1, 2005. Laws 2004, chapter *183, section 37, the effective date.
* NOTE: The amendment to subdivision 5 by Laws 2004, chapter *183, section 37, does not apply to late tax report penalties *issued prior to July 1, 2005. Laws 2004, chapter 183, section *37, the effective date.
Official Publication of the State of Minnesota
Revisor of Statutes