02. Employer Liability, Tax Rate, Successorship

R F Molitoris, DDS v MESC – 2.13

R F Molitoris, DDS v MESC
Digest no. 2.13

Sections 11(g), 18(d)32a

Cite asR F Molitoris, DDS v MESC, unpublished opinion of the Macomb County Circuit Court, issued January 21, 1993 (Docket No. 92-3446-AE).

Appeal pending: No
Claimant: Wanda Forbes
Employer: R.F. Molitoris, D.D.S.
Docket no.: L90-06544-2224
Date of decision: January 21, 1993

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CIRCUIT COURT HOLDING: An interstate claimant’s entitlement to benefits is determined by the state in which the claim is made. The Agency is not precluded from redetermining an erroneous contribution rate if such redetermination is made within one year of the issuance of the initial rate.

FACTS: Claimant Wanda Forbes worked for involved employer and another Michigan employer in 1981 before moving to Nevada where she worked, then filed a combined wage claim for benefits, in September 1982. The Michigan employers provided information but this employer was not notified of charges to its account until 1985. Employer challenged charges and an adjustment of $898 was made for 1986. Employer requested redetermination of rate in 1989 which was denied as untimely. Agency subsequently discovered employer had received $898 credit for years 1987 through 1990 in error. Nevertheless, the Agency only recalculated the 1990 rate because redetermination of others was time barred under Section 32a.

DECISION: Redetermination of 1990 rate affirmed.

RATIONALE: Employer lacked standing to challenge award of benefits because under MESA Section 11(g), which conforms with 26 USC 3304, her entitlement to benefits was controlled by laws of Nevada (paying state). Agency had the authority to redetermine employer’s 1990 contribution rate within one year of its issuance. Erroneous rates for 1987 through 1989 could not be redetermined because of the one year time limit.

Digest Author: Board of Review (original digest here)
Digest Updated: 7/99