1997 Minnesota Statutes

     268.051 Employers contributions. 

    Subdivision 1.    Payments.  (a) Contributions shall 
 accrue and become payable by each employer for each calendar 
 year that the employer is subject to this chapter, except for:  

    (1) nonprofit corporations as provided in section 268.053; 
 and 

    (2) the state and political subdivisions as provided in 
 section 268.052.  

 Each employer shall pay contributions quarterly, at the 
 employer's assigned contribution rate, on the taxable wages paid 
 to each employee.  The contributions shall be paid to the 
 Minnesota reemployment insurance fund on or before the last day 
 of the month following the end of the calendar quarter. 

    (b) The contribution may be paid in an amount to the 
 nearest whole dollar. 

    (c) When the contribution for any calendar quarter is less 
 than $1, the contribution shall be disregarded. 

    Subd. 2.    Computation of contribution rates.  (a) For 
 each calendar year the commissioner shall compute the 
 contribution rate of each employer by adding the minimum 
 contribution rate to the employer's experience rating. 

    (b) The minimum contribution rate shall be six-tenths of 
 one percent if the amount in the reemployment insurance fund is 
 less than $200,000,000 on June 30 of the preceding calendar 
 year; or five-tenths of one percent if the fund is more than 
 $200,000,000 but less than $225,000,000; or four-tenths of one 
 percent if the fund is more than $225,000,000 but less than 
 $250,000,000; or three-tenths of one percent if the fund is more 
 than $250,000,000 but less than $275,000,000; or two-tenths of 
 one percent if the fund is $275,000,000 but less than 
 $300,000,000; or one-tenth of one percent if the fund is 
 $300,000,000 or more. 

    (c) The maximum contribution rate shall be 9.0 percent. 

    (d) For the purposes of this subdivision the reemployment 
 insurance fund shall not include any money advanced from the 
 federal unemployment trust fund. 

    Subd. 3.    Computation of each employer's experience 
 rating.  The commissioner shall compute an experience rating 
 for each employer who has been subject to this chapter for at 
 least the 15 consecutive calendar months immediately preceding 
 July 1 of the preceding calendar year.  The experience rating 
 shall be the ratio obtained by dividing 1-1/4 times the total 
 benefits charged to the employer's account during the period the 
 employer has been subject to this chapter but not less than the 
 15 or more than the 60 consecutive calendar months ending on 
 June 30 of the preceding calendar year by the employer's total 
 taxable payroll for the same period on which all contributions 
 due have been paid on or before October 31 of the preceding 
 calendar year.  The experience rating shall be computed to the 
 nearest one-tenth of a percent.  

    Subd. 4.    Experience rating record transfer.  (a) When 
 an employing unit succeeds to or acquires the organization, 
 trade or business or substantially all the assets of another 
 employing unit that at the time of the acquisition was an 
 employer subject to this law, and continues the organization, 
 trade or business, the experience rating record of the 
 predecessor employer shall be transferred as of the date of 
 acquisition to the successor employer for the purpose of 
 computation of a contribution rate. 

    (b) When an employing unit succeeds to or acquires a 
 distinct severable portion of the organization, trade, business, 
 or assets that is less than substantially all of the employing 
 enterprises of another employing unit, the successor employing 
 unit shall acquire the experience rating record attributable to 
 the portion to which it has succeeded, and the predecessor 
 employing unit shall retain the experience rating record 
 attributable to the portion that it has retained, if (1) the 
 successor continues the organization, trade, or business of the 
 portion acquired, (2) the successor makes a written request to 
 file an application for the transfer of the experience rating 
 record for the severable portion acquired from the predecessor 
 (3) and within 90 days from the date of mailing the application 
 to the successor the successor and predecessor jointly sign and 
 file an application as prescribed by the commissioner that 
 furnishes sufficient information to substantiate the severable 
 portion and to assign the appropriate total and taxable wages 
 and benefit charges to the successor for experience rating 
 purposes.  

    (c) If the successor employer under paragraphs (a) and (b) 
 had an experience rating record at the time of the acquisition, 
 the transferred record of the predecessor shall be combined with 
 the successor's record for purposes of computation of a 
 contribution rate. 

    (d) If there has been a transfer of an experience rating 
 record under paragraph (a) or (b), employment with a predecessor 
 employer shall not be deemed to have been terminated if similar 
 employment is offered by the successor employer and accepted by 
 the employee. 

    (e) The commissioner, upon the commissioner's own motion or 
 upon application of an employing unit shall determine if an 
 employing unit is a successor within the meaning of this 
 subdivision and shall mail the determination to the last known 
 address of the employing unit.  The determination shall be final 
 unless a written appeal is filed by the employing unit within 30 
 calendar days after mailing of determination.  Proceedings on 
 the appeal shall be conducted in accordance with section 268.105.

    (f) The commissioner shall, as the result of any 
 determination or decision regarding succession or nonsuccession, 
 recompute the contribution rate of all employers affected by the 
 determination or decision for any year, including the year of 
 the acquisition or succession and subsequent years, that is 
 affected by the transfer or nontransfer of part or all of the 
 experience rating record under this subdivision.  This paragraph 
 does not apply to rates that have become final prior to the 
 filing of a written request to file an application for the 
 transfer of a severable portion of the experience rating record 
 as provided in paragraph (b). 

    (g) The experience rating record for purposes of this 
 subdivision shall consist of those factors which make up an 
 experience rating, without the 15-month minimum. 

    Subd. 5.    Rate for new employers.  (a) Each employer 
 that does not qualify for an experience rating, except employers 
 in the construction industry, shall be assigned a contribution 
 rate the higher of (1) one percent, or (2) the state's benefit 
 cost rate; to a maximum of 5-4/10 percent.  For purposes of this 
 paragraph, the state's benefit cost rate shall be computed 
 annually and shall be derived by dividing the total dollar 
 amount of benefits paid during the 60 consecutive calendar 
 months immediately preceding July 1 of each year by the total 
 taxable wages of all contributing employers during the same 
 period.  This rate shall be applicable for the calendar year 
 next succeeding the computation date.  

    (b) Each employer in the construction industry that does 
 not qualify for an experience rating shall be assigned a 
 contribution rate, the higher of (1) one percent, or (2) the 
 state's benefit cost rate for construction employers to a 
 maximum of 9.0 percent.  For purposes of this paragraph, the 
 state's benefit cost rate shall be computed annually and shall 
 be derived by dividing the total dollar amount of benefits paid 
 to claimants of construction industry employers during the 60 
 consecutive calendar months immediately preceding July 1 of each 
 year by the total taxable wages of construction industry 
 employers during the same period.  This rate shall be applicable 
 for the calendar year next succeeding the computation date.  

    For purposes of this subdivision an employer is in the 
 construction industry if the employer is within division C of 
 the Standard Industrial Classification Manual issued by the 
 United States Office of Management and Budget, except as 
 excluded by rules adopted by the commissioner. 

    Subd. 6.    Notice of contribution rate.  (a) The 
 commissioner shall mail to the last known address of each 
 employer notice of the employer's contribution rate as 
 determined for any calendar year.  The notice shall contain the 
 contribution rate and the factors used in determining the 
 employer's experience rating.  Unless a protest of the rate is 
 made, the assigned rate shall be final except for fraud and 
 shall be the rate upon which contributions shall be paid for the 
 calendar year for which the rate was assigned.  The contribution 
 rate shall not be subject to collateral attack by way of claim 
 for adjustment or refund, or otherwise.  

    (b) If the legislature, subsequent to the mailing of the 
 contribution rate, changes any of the factors used to determine 
 the rate, the earlier notice shall be void.  A new contribution 
 rate based on the new factors shall be computed and mailed to 
 the employer.  

    (c) A review of an employer's contribution rate may be 
 obtained by the employer filing with the commissioner a written 
 protest within 30 calendar days from the date of the mailing of 
 the contribution rate notice to the employer.  Upon receipt of 
 the protest, the commissioner shall review the contribution rate 
 to determine whether or not there has been any clerical error or 
 error in computation.  The commissioner shall either affirm or 
 make a redetermination of the rate and a notice of the 
 affirmation or redetermination shall be mailed to the employer.  
 The affirmation or redetermination shall be final unless the 
 employer files a written appeal within 30 calendar days after 
 the date of mailing.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105.  

    (d) The commissioner may at any time upon the 
 commissioner's own motion correct any error in the computation 
 or the assignment of an employer's contribution rate.  

    Subd. 7.    Contribution rate buydown.  (a) Any employer 
 who has been assigned a contribution rate based upon an 
 experience rating may, upon the voluntary payment of an amount 
 equivalent to any portion or all of the benefits charged to the 
 employer's account, plus a surcharge of 25 percent, obtain a 
 cancellation of benefits charged to the account equal to the 
 payment made, less the surcharge.  Upon the payment, the 
 commissioner shall compute a new experience rating for the 
 employer, and determine a new contribution rate.  

    (b) Voluntary payments may be made only during the 30 
 calendar day period immediately following the date of mailing of 
 the notice of contribution rate.  This period may be extended, 
 upon a showing of good cause, but in no event shall a voluntary 
 payment be allowed after 120 calendar days immediately following 
 the beginning of the calendar year for which the contribution 
 rate is effective. 

    (c) Voluntary payments made within the time required will 
 not be refunded unless a request is made in writing within 30 
 calendar days after mailing of the notice of the new 
 contribution rate. 

    Subd. 8.    Solvency assessment.  (a) If the fund 
 balance is greater than $75,000,000 but less than $150,000,000 
 on June 30 of any year, a solvency assessment will be in effect 
 for the following calendar year.  Each employer, except those 
 making payments in lieu of contributions shall pay a quarterly 
 solvency assessment of ten percent multiplied by the 
 contributions paid or due and payable for each calendar quarter 
 in that year.  Quarterly contributions and the solvency 
 assessment payments shall be combined and will be computed 
 notwithstanding the maximum contribution rate, by multiplying 
 the quarterly taxable payroll by the assigned contribution rate 
 multiplied by 1.10. 

    (b) If the fund balance is less than $75,000,000 on June 30 
 of any year, a solvency assessment will be in effect for the 
 following calendar year.  Each employer, except those making 
 payments in lieu of contributions, shall pay a quarterly 
 solvency assessment of 15 percent multiplied by the 
 contributions paid or due and payable for each calendar quarter 
 in that year.  Quarterly contributions and the solvency 
 assessment payments shall be combined and will be computed 
 notwithstanding the maximum contribution rate, by multiplying 
 the quarterly taxable payroll by the assigned contribution rate 
 multiplied by 1.15 rounded to the nearest one-hundredth of a 
 percent.  

    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 11-15,17,18,20,21,79