1997 Minnesota Code
Chapters 268 - 269 Economic Security
Chapter 268 Department of Economic Security
Section 268.145 Income tax withholding.

268.145 Income tax withholding.

Subdivision 1. Notification. (a) Upon application for a reemployment insurance account, the claimant shall be informed that:

(1) reemployment insurance benefits are subject to federal and state income tax;

(2) there are requirements for filing estimated tax payments;

(3) the claimant may elect to have federal income tax withheld from benefits;

(4) if the claimant elects to have federal income tax withheld, the claimant may, in addition, elect to have Minnesota state income tax withheld; and

(5) at any time during the benefit year the claimant may change a prior election.

(b) If a claimant elects to have federal income tax withheld, the commissioner shall deduct that percentage required by the Internal Revenue Code. If a claimant, in addition to federal income tax withholding, elects to have Minnesota state income tax withheld, the commissioner shall make an additional five percent deduction for Minnesota state income tax. Any amounts deducted pursuant to sections 268.155, 268.165, 268.18, 268.182, and 268.184 have priority over any amounts deducted under this section. Federal income tax withholding has priority over Minnesota state income tax withholding.

(c) An election to have federal income tax, or federal and Minnesota state income tax, withheld shall not be retroactive and shall only apply to benefits paid after the election.

Subd. 2. Transfer of funds. The amount of any benefits deducted under this section shall remain in the Minnesota reemployment insurance fund until transferred to the federal Internal Revenue Service, or the Minnesota department of revenue, as an income tax payment on behalf of the claimant.

Subd. 3. Correction of errors. Any error which resulted in underwithholding under this section shall not be corrected retroactively.

Subd. 4. Federal requirement. The commissioner shall follow all federal requirements for the deduction and withholding of federal and Minnesota state income tax from reemployment insurance benefits.

Subd. 5. Application. This section applies to any payments under federal or state law as compensation, assistance, or allowance with respect to unemployment.

HIST: 1996 c 417 s 17; 1997 c 66 s 79