Iowa Admin. Code r. 871-23.37 - Adjustments and refunds of contributions
(1) If an
employer , after submitting a quarterly unemployment tax report, discovers an
error that results in an overpayment of contribution due and owing, such
employer may file an application for credit allowance or refund. If the
department discovers that the contribution submitted by any employer is
incorrect, resulting in overpayment of contribution, it may on its own
initiative refund or make a credit allowance. No refund or credit will be made
after three years from the date on which the overpayment was made. The employer
will submit a wage adjustment to show corrections for the employee wage lines
impacted, corrected total and taxable wages, and an explanation for the wage
adjustment.
(2) If an employer
submits a quarterly unemployment tax report that understates the amount of
wages paid in a calendar quarter , the employer will submit a wage adjustment
for the period and make payment for all additional contributions , penalty and
interest due.
a. If it is apparent, upon
review of wages reported or adjusted, that an employer has overpaid
contribution, the department may make an adjustment and issue a credit within
three years from the date of the overpayment. If an employer has multiple
accounts, any credit may be moved to an account where there is a balance
due.
b. If an employer discovers
that it may have overpaid contribution, it may submit a request for credit
within three years from the date on which the overpayment was made. The
department will review the request and, if it determines an adjustment is
required, shall issue a credit or refund for the overpayment.
(3) A valid credit will be applied
to an outstanding balance due on an unemployment tax account. If an employer
has multiple accounts, a credit can be moved to a different account where debt
might be owed. An employer may request a refund of the credit within three
years from the date the credit was created. If the credit is not requested
within three years, it will be canceled by the department. Upon request of the
employer or at the discretion of the department, a refund can be issued for any
overpayment. If the employer fails to utilize the credit as provided above, the
department shall, three years from the date of issuance, cancel the credit and
show it as a nonrefundable credit. Warrants are issued by the state
comptroller.
This rule is intended to implement Iowa Code section 96.14(5).
Notes
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(1) Whenever any employer discovers that the contribution report submitted is incorrect resulting in overpayment of contributions due and owing, such employer may file an application for credit allowance or refund. If the department discovers that the contribution submitted by any employer is incorrect resulting in overpayment of contribution, it may on its own initiative refund or make a credit allowance. No refund or credit allowance will be made after three years from the date on which the overpayment was made. The employer 's wage adjustment report shall be filed electronically to show corrections to the individual wage amounts, corrections of grand totals (total wages , taxable wages and contributions ), and a full explanation for the adjustment. Adjustment shall be made by the department in the form of credit allowance or refund as provided in subrule 23.37(3) equal to that portion of contributions erroneously paid which exceeds the benefits paid to claimants as a direct result of the employer 's erroneous report.
(2) If the contribution and wage report first submitted by an employer understates the amount of wages paid for a given period, the employer will electronically submit a wage adjustment for the period and make payment covering all additional contributions , penalty and interest due.
a. If it is apparent, upon examination of any wages reported or adjusted, that a greater contribution than is required by law has been paid, the department may, within three years from the date of such overpayment, make an adjustment and issue a credit for such overpayment.
b. If it is not apparent from the examination of any wages reported or adjusted that a contribution greater than that required by law has been made, any employer or employing unit claiming a credit shall submit a request within three years from the date on which such overpayment was made. A credit shall be granted only after a review of the request which will set forth such information in the matter as may be required. If, after such review, the adjustment is found to be in order, the department shall issue a credit or refund for the overpayment.
(3) The amount of the credit will be deducted from the contributions in the employer 's account and credited to any outstanding account balance until the credit is used or canceled in accordance with these rules. If the employer fails to utilize the credit as provided above, the department shall, three years from the date of issuance, cancel the credit and show it as a nonrefundable credit. The department, upon request of the employer or on its own initiative, may issue a refund of the overpayment. The state comptroller is responsible for the issuance of the warrant.
(4) When an employer requests a refund or credit of contributions paid due to an erroneous reporting of wages , the refund or credit shall be reduced by the amount of benefits paid and charged to the employer as a result of the erroneous wages .
(5) All grounds and facts alleged in support of a claim for refunds or credit shall be clearly set forth. The employing unit shall furnish such proof in support of the claim as may be reasonably necessary at the discretion of the department to support the validity and the amount of the claim and the fact that the employing unit making the application for refund or credit is legally entitled to it.