Minn. R. agency 151, ch. 5220, WORKERS' COMPENSATION RULES OF PRACTICE, pt. 5220.2840

Current through Register Vol. 49, No. 20, November 12, 2024

Part 5220.2840 - FAILURE TO MAKE PAYMENT OR REPORT TO SPECIAL FUND; PENALTY

Subpart 1.Due date.

For workers' compensation benefits paid from January 1 through June 30, the due date of the completed assessment form and corresponding assessment amount is August 15 of the same calendar year.

For workers' compensation benefits paid from July 1 through December 31, the due date of the corresponding assessment amount is March 1 of the following calendar year.

Notice of the assessment rate and instructions for payment will be issued by the fund 45 or more days before the due date.

Insurers no longer licensed to provide, or no longer providing workers' compensation insurance in Minnesota, and employers no longer self-insured to provide workers' compensation benefits must continue to file the assessment form until five years have elapsed since a policy of workers' compensation insurance or self-insurance was provided, or three years after the last indemnity payment was made, whichever is later. Insurers not owing an assessment must report zero liability during the required reporting years.

Subp. 2.Basis.

A penalty will be assessed under Minnesota Statutes, section 176.129, subdivision 10, where either:

A. the completed assessment form and payment of the special compensation fund assessment; or

B. written certification that the assessment report and assessment payment will not be made by the due date because of reasons beyond the control of the insurer or because no assessment is owing, is not received by the special compensation fund on or before the due date.

Subp. 3.Amount.

Within 30 days of the due date, the special compensation fund will give notice of penalty to those who have neither filed the completed assessment form and paid the assessment amount, nor submitted a certified reason for nonpayment by the due date as follows:

A. Either:

(1) 2.5 percent of the assessment amount due if the assessment payment is received at the fund within five days after the due date;

(2) five percent of the assessment amount due if the assessment payment is received at the fund within six to 30 days after the due date;

(3) ten percent of the assessment amount due if the assessment payment is received at the fund within 31 to 60 days after the due date; or

(4) 15 percent of the assessment amount due if the assessment payment is received at the fund 61 or more days after the due date;

B. $1,000, whichever is greater; or

C. $200 for failure to timely report under subpart 2, item B, that no assessment is due.

Subp. 4.Payable to.

The penalty is payable to the commissioner for deposit in the assigned risk safety account.

Subp. 5.Continued nonpayment.

If the insurer penalized does not make payment within six months of the due date, the fund director shall refer the file to the Department of Commerce for consideration of license or permit revocation.

Minn. R. agency 151, ch. 5220, WORKERS' COMPENSATION RULES OF PRACTICE, pt. 5220.2840

11 SR 1530; 13 SR 2686; 18 SR 2546; 23 SR 1484; 35 SR 2015

Statutory Authority: MS s 14.388; 175.17; 175.171; 176.129; 176.138; 176.221; 176.225; 176.231; 176.238; 176.83; 176.84