2007 Minnesota Statutes

268.046 TAX AND REIMBURSABLE ACCOUNTS ASSIGNED TO EMPLOYEE
LEASING COMPANIES, PROFESSIONAL EMPLOYER ORGANIZATIONS, OR
SIMILAR PERSON.
    Subdivision 1. Tax accounts assigned. (a) Any person that contracts with a taxpaying
employer to have that person obtain the taxpaying employer's workforce and provide workers
to the taxpaying employer for a fee is, as of the effective date of the contract, assigned for the
duration of the contract the taxpaying employer's account under section 268.045. That tax account
must be maintained by the person separate and distinct from every other tax account held by the
person and identified in a manner prescribed by the commissioner. The tax account is, for the
duration of the contract, considered that person's account for all purposes of this chapter. The
workers obtained from the taxpaying employer and any other workers provided by that person
to the taxpaying employer must, under section 268.044, be reported on the wage detail report
under that tax account, and that person must pay any taxes due at the tax rate computed for that
account under section 268.051, subdivision 2.
    (b) Any workers of the taxpaying employer who are not covered by the contract under
paragraph (a) must be reported by the taxpaying employer as a separate unit on the wage detail
report under the tax account assigned under paragraph (a). Taxes and any other amounts due on
the wages reported by the taxpaying employer under this paragraph may be paid directly by the
taxpaying employer.
    (c) If the taxpaying employer that contracts with a person under paragraph (a) does not have
a tax account at the time of the execution of the contract, an account must be registered for the
taxpaying employer under section 268.042 and the new employer tax rate under section 268.051,
subdivision 5 , must be assigned. The tax account is then assigned to the person as provided
for in paragraph (a).
    (d) A person that contracts with a taxpaying employer under paragraph (a) must, within 30
calendar days of the execution or termination of a contract, notify the commissioner by electronic
transmission, in a format prescribed by the commissioner, of that execution or termination. The
taxpaying employer's name, the account number assigned, and any other information required by
the commissioner must be provided by that person.
    (e) Any contract subject to paragraph (a) must specifically inform the taxpaying employer
of the assignment of the tax account under this section and the taxpaying employer's obligation
under paragraph (b). If there is a termination of the contract, the tax account is, as of the date of
termination, immediately assigned to the taxpaying employer.
    Subd. 2. Nonprofit and government reimbursable accounts assigned. (a) Any person that
contracts with a nonprofit or government employer that is a reimbursing employer to have that
person obtain the nonprofit or government employer's workforce and provide workers to the
nonprofit or government employer for a fee, is, as of the effective date of the contract, assigned
for the duration of the contract the nonprofit or government employer's account under section
268.045. That reimbursable account must be maintained by the person separate and distinct from
every other account held by the person and identified in a manner prescribed by the commissioner.
That reimbursable account is, for the duration of the contract, considered that person's account for
all purposes of this chapter. The workers obtained from the nonprofit or government employer
and any other workers provided by that person to the nonprofit or government employer must,
under section 268.044, be reported on the wage detail report under that reimbursable account, and
that person must pay any reimbursements due.
    (b) Any workers of the nonprofit or government employer who are not covered by the
contract under paragraph (a) must be reported by the nonprofit or government employer as a
separate unit on the wage detail report under the reimbursable account assigned under paragraph
(a). Reimbursements and any other amounts due on the wages reported by the nonprofit or
government employer under this paragraph may be paid directly by the nonprofit or government
employer.
    (c) If the nonprofit or government employer that contracts with a person under paragraph
(a) does not have an account at the time of the execution of the contract, an account must be
registered for the nonprofit or government employer under section 268.042. The reimbursable
account is then assigned to the person as provided for in paragraph (a).
    (d) A person that contracts with a nonprofit or government employer under paragraph
(a) must, within 30 calendar days of the execution or termination of a contract, notify the
commissioner of that execution or termination by electronic transmission, in a format prescribed
by the commissioner. The nonprofit or government employer's name, the account number
assigned, and any other information required by the commissioner must be provided by that
person.
    (e) Any contract subject to paragraph (a) must specifically inform the nonprofit or
government employer of the assignment of the reimbursable account under this section and the
nonprofit or government employer's obligation under paragraph (b). If there is a termination of the
contract, the reimbursable account is, as of the date of termination, immediately assigned to the
nonprofit or government employer.
    Subd. 3. Penalties; application. (a) Any person that violates the requirements of this section
and any taxpaying employer that violates subdivision 1, paragraph (b), or any nonprofit or
government employer that violates subdivision 2, paragraph (b), is subject to the penalties under
section 268.184, subdivision 1a. Penalties are credited to the administration account to be used
to ensure integrity in the unemployment insurance program.
    (b) Section 268.051, subdivision 4, does not apply to contracts under this section. This
section does not limit or prevent the application of section 268.051, subdivision 4, to any other
transactions or acquisitions involving the taxpaying employer. This section does not limit or
prevent the application of section 268.051, subdivision 4a.
    (c) An assignment of an account upon the execution of a contract under this section and a
termination of a contract with the corresponding assignment of the account is not considered
a separation from employment of any worker covered by the contract. Nothing under this
subdivision causes the person to be liable for any amounts past due under this chapter from the
taxpaying employer or the nonprofit or government employer.
    (d) This section applies to, but is not limited to, persons registered under section 79.255,
but does not apply to persons that obtain an exemption from registration under section 79.255,
subdivision 9 .
History: 2005 c 112 art 1 s 5; 2007 c 128 art 6 s 21