Opinion ID: 1937458
Heading Depth: 1
Heading Rank: 4

Heading: Offset Against Refund for Benefits Paid Out.

Text: The district court refused to allow the agency any offset against the refund for benefits paid out to employees based on the 1985 wages erroneously reported to the agency. The court found the evidence unclear on whether the agency actually paid out benefits to employees based on 1985 wages. Regardless, the district court concluded that the sole question under Iowa Code section 96.14(5) is whether the employer erroneously paid contributions and not whether the agency paid out benefits based on those contributions. The agency argues here that it is entitled to offset against the refund benefits paid out on account of the error. An administrative rule provides: When an employer requests a refund or credit of contributions paid due to an erroneous reporting of wages, such refund or credit shall be reduced by the amount of benefits paid and charged to the employer on account of such wages. 345 Iowa Admin.Code § 3.37(4). We cannot conclude on the record before us that the rule is unreasonable, arbitrary, capricious, or otherwise beyond the authority delegated to the agency. On remand, the agency shall determine whether and to what extent benefits were erroneously paid out on account of the 1985 wages.