A MN Unemployment Audit is authorized under Minnesota Statute 268.168. The biggest risk associated with an MN Unemployment Audit is the fact the audit can lead to severe monetary penalties and or initiate an audit from another government agency.
Who can initiate a MN Unemployment Audit?
An MN Unemployment Audit is generally initiated through the Minnesota Department of Employment and Economic Development (“DEED”).
For all practical purposes, DEED has the power to perform an MN Unemployment Audit at any time. Unfortunately, an MN Unemployment Audit can inspire other issues through the Minnesota Department of Revenue, the Minnesota Department of Labor, and related agencies. For this one reason, respond to an MN Unemployment Audit with a higher level of care.
What happens during a MN Unemployment Audit?
The Commissioner for DEED has the power to audit, examine, or cause to be supplied or copied, any books, correspondence, papers, records, or memoranda that are relevant to unemployment claims in Minnesota. Whether the books, correspondence, papers, records, or memoranda are the property of or in the possession of the employer, any person associated with the employer can be audited, including current and past employees or vendors.
What if the Employer refuses a MN Unemployment Audit?
An Employer who refuses to comply with an Unemployment Audit risks being penalized or fined. None the less, employers in Minnesota have rights.
To avoid feeling uneasy or that sinking feeling by involving those who have experience with this process.
Why do businesses get a MN Unemployment Audit?
Regardless of the industry, most employers respond the same when confronted with a notice regarding an Unemployment Audit – why me and why now? Lets face it, no employer hopes for an Unemployment Audit . Normally, an Unemployment Audit starts with a complaint or an applicant seeking benefits. However, this is not necessarily true given Minnesota’s history with incorrectly paying unemployment claims.
In the year 2012, the State of Minnesota incorrectly paid out eight-five million dollars ($85,000,000) in unemployment benefits. Unemployment benefits are subsidized under three sources of revenue: (1) employer premiums, (2) taxes, (3) Federal bills. Because employers are part of this equation, the Minnesota unemployment office turn to Employers when initiating an MN Unemployment Audit.
Impact or Outcome of a MN Unemployment Audit:
An MN Unemployment Audit can have a significant impact both financially and from a production and service standpoint. Also, claims can begin small and turn into bigger issues of concern.
For example, an MN Unemployment Audit can inspire other issues through the Minnesota Department of Revenue, the Minnesota Department of Labor, and related agencies. For this one reason, respond to an audit with a higher level of care.
For these reason, consider seeking help from a law office that has direct one-on-one experience with the process related to an Unemployment Audit . Otherwise, penalties and fines may be assessed
Lawyer for MN Unemployment Audit:
If you are looking for a Lawyer to represent your business during an MN Unemployment Audit, please contact this law office by clicking HERE.