(1) Where the department determines that an employee has provided a false withholding certificate or falsified certificate of North Dakota residency, it may require the employer to deduct and withhold from the employee's current wages a recomputed amount of withholding for the current year wages of the employee based on the proper amount of withholding which would have been taken had the false filing not been made. If the employee has terminated employment and has been paid all wages earned prior to notification of required recomputation, the employer shall not be held liable for the uncollected withholding.

(2) If an employer has knowledge that a falsified certificate has been provided by the employee and fails to notify the department as required, the employer may be held liable for withholding not collected.