Unemployment Audits in Minnesota
An unemployment audit in Minnesota are initiated through the Minnesota Department of Employment and Economic Development (“DEED”). For all practical purposes, DEED has the power to perform an unemployment audit at any time. Unfortunately, an 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 unemployment audit with a higher level of care.
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. In fact, an employer who refuses to comply with an unemployment audit risks being penalized or fined. None the less, employers in Minnesota have rights. Thus, avoid feeling uneasy or that sinking feeling by involving those who have experience with this process.
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 unemployment audit.
It is worth repeating – an 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 this 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
For more information on this issue, consider contacting this law office by phone or using the contact form at the right of this page.