268.057 COLLECTION OF TAXES.
Subdivision 1. Amount computed presumed correct.
Any amount due from an employer,
as computed by the commissioner, is presumed to be correctly determined and assessed, and the
burden is upon the employer to show its incorrectness. A statement by the commissioner of the
amount due is admissible in evidence in any court or administrative proceeding and is prima
facie evidence of the facts in the statement.
Subd. 2. Priority of payments.
(a) Any payment received from a taxpaying employer must
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) is 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 under section
, 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
, 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 under 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
, 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, any costs assessed the department by the financial institution and a fee of
$25 must be assessed to the person.
Costs and fees collected under this subdivision are credited to the administration account
to be used by the commissioner to ensure integrity in the administration of the unemployment
Subd. 5. Interest on amounts past due.
If any amounts due from an employer under this
chapter or section
, except late fees under section
, are not received on the date
due the unpaid balance bears interest at the rate of one and one-half percent per month or any part
thereof. Interest assessed, if not a whole dollar amount, is rounded down to the next lower whole
dollar. Interest collected is credited to the contingent account. Interest may be compromised
Subd. 6. Interest on judgments.
Regardless of section
, if judgment is entered upon
any past due amounts from an employer under this chapter or section
, the unpaid
judgment bears 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
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 is considered unclaimed property under chapter
(b) If a credit adjustment or refund is denied in whole or in part, a notice of denial must be
sent to the employer by mail or electronic transmission. The notice of denial is final unless an
employer files an appeal within 20 calendar days after sending. Proceedings on the appeal are
conducted in accordance with section
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 according to an order of any court, including any receivership,
assignment for benefit of creditors, adjudicated insolvency, or similar proceeding, taxes then
or thereafter due must be paid in full before 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 are entitled to the priority provided in that law for taxes due any state.
History: 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; 2007 c 128 art 1 s 10; art 6 s 34-40