Interest Charged on Late Tax Payments If the taxes due are not received by the due date, the employer is assessed interest at the rate of 1.0 percent per month or any part thereof, from the due date until payment is received by the Minnesota Unemployment Insurance Program. Interest assessments may be removed if a late payment is attributable to certain extenuating circumstances. All requests for interest removal must be in writing, and the reasons for late payment must be substantiated. Late Fees for Failure to File Timely Reports An employer who knowingly fails to submit a Wage Detail Report by the due date is required to pay a late fee in addition to the interest. An employer who submits the Wage Detail Report, but knowingly fails to include any part of the required information or knowingly enters erroneous information is also subject to an administrative fee. Additional information on interest and administrative fees is available at Minnesota Unemployment Insurance Program. Adjustments and Refunds An employer that overpays the tax due may apply for an adjustment within four years from the date the tax was paid. To obtain an adjustment the employer should complete an adjustment transaction using the Unemployment Insurance Employer Self-Service System. Upon approval of the submission, the employer will receive a credit that can be applied to future taxes. When specifically requested, a refund check will be issued for the full amount of the credit. An employer who fails to include all wages in a previous report should complete an adjustment transaction via the Minnesota Unemployment Insurance Employer Self-Service System. Upon review and approval of the completed submission, the necessary adjustments will be made. Adjustments for a prior quarter should not be made on a subsequent quarter’s Wage Detail Report. All adjustments should be made to the quarter and year to which they relate. Overpayments or underpayments may also result from an unemployment insurance audit of an employer’s payroll records. In such cases, all adjustments will automatically be made, and the employer will be notified of any overpayment or underpayment. Audits Unemployment Insurance Auditors perform regular examinations of employer payroll records. An audit to verify wage items and employment is generally confined to a single year, but may be expanded if errors or exclusions are found. All of the employer’s records, including subsidiary records, must be made available to the auditor. Auditors may also inspect records for the purpose of establishing an employer’s liability under the law, to obtain information regarding an application for unemployment benefits and in connection with unemployment insurance fraud investigations. The Minnesota Unemployment Insurance Law provides that the records of any employing unit must be open to inspection, audit and verification at any reasonable time, and as often as may be deemed necessary.
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