2006 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.
History: 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