CHAPTER 10. EMPLOYER CONTRIBUTIONS
IC 22-4-10
Chapter 10. Employer Contributions
IC 22-4-10-1
Payments; time; amounts instead of contributions; election;
interest and penalties; joint applications
Sec. 1. (a) Contributions shall accrue and become payable from
each employer for each calendar year in which it is subject to this
article with respect to wages paid during such calendar year. Where
the status of an employer is changed by cessation or disposition of
business or appointment of a receiver, trustees, trustee in bankruptcy,
or other fiduciary, contributions shall immediately become due and
payable on the basis of wages paid or payable by such employer as
of the date of the change of status. Such contributions shall be paid
to the department in such manner as the department may prescribe,
and shall not be deducted, in whole or in part, from the remuneration
of individuals in an employer's employ. When contributions are
determined in accordance with Schedule A as provided in
IC 22-4-11-3, the department may prescribe rules to require an
estimated advance payment of contributions in whole or in part, if in
the judgment of the department such advance payments will avoid a
debit balance in the fund during the calendar quarter to which the
advance payment applies. An adjustment shall be made following the
quarter in which an advance payment has been made to reflect the
difference between the estimated contribution and the contribution
actually payable. Advance payment of contributions shall not be
required for more than one (1) calendar quarter in any calendar year.
(b) Any employer which is, or becomes, subject to this article by
reason of IC 22-4-7-2(g) or IC 22-4-7-2(h) shall pay contributions as
provided under this article unless it elects to become liable for
"payments in lieu of contributions" (as defined in IC 22-4-2-32).
(c) Except as provided in subsection (e), the election to become
liable for "payments in lieu of contributions" must be filed with the
department on a form prescribed by the department not later than
thirty-one (31) days following the date upon which such entity
qualifies as an employer under this article, and shall be for a period
of not less than two (2) calendar years.
(d) Any employer that makes an election in accordance with
subsections (b) and (c) will continue to be liable for "payments in
lieu of contributions" until it files with the department a written
notice terminating its election. The notice filed by an employer to
terminate its election must be filed not later than thirty (30) days
prior to the beginning of the taxable year for which such termination
shall first be effective.
(e) Any employer that qualifies to elect to become liable for
"payments in lieu of contributions" and has been paying
contributions under this article, may change to a reimbursable basis
by filing with the department not later than thirty (30) days prior to
the beginning of any taxable year a written notice of election to
become liable for payments in lieu of contributions. Such election
shall not be terminable by the organization for that and the next year.
(f) Employers making "payments in lieu of contributions" under
subsections (b) and (c) shall make reimbursement payments monthly.
At the end of each calendar month the department shall bill each
such employer (or group of employers) for an amount equal to the
full amount of regular benefits plus the part of benefits not
reimbursed by the federal government under the Federal-State
Extended Unemployment Compensation Act of 1970 paid during
such month that is attributable to services in the employ of such
employers or group of employers. Governmental entities of this state
and its political subdivisions electing to make "payments in lieu of
contributions" shall be billed by the department at the end of each
calendar month for an amount equal to the full amount of regular
benefits plus the part of benefits not reimbursed by the federal
government under the Federal-State Extended Unemployment
Compensation Act of 1970 paid during the month that is attributable
to service in the employ of the governmental entities.
(g) Payment of any bill rendered under subsection (f) shall be
made not later than thirty (30) days after such bill was mailed to the
last known address of the employer or was otherwise delivered to it,
unless there has been an application for review and redetermination
filed under subsection (i).
(h) Payments made by any employer under the provisions of
subsections (f) through (j) shall not be deducted or deductible, in
whole or in part, from the remuneration of individuals in the employ
of the employer.
(i) The amount due specified in any bill from the department shall
be conclusive on the employer unless, not later than fifteen (15) days
after the bill was mailed to its last known address or otherwise
delivered to it, the employer files an application for redetermination.
If the employer so files, the employer shall have an opportunity to be
heard, and such hearing shall be conducted by a liability
administrative law judge pursuant to IC 22-4-32-1 through
IC 22-4-32-15. After the hearing, the liability administrative law
judge shall immediately notify the employer in writing of the finding,
and the bill, if any, so made shall be final, in the absence of judicial
review proceedings, fifteen (15) days after such notice is issued.
(j) Past due payments of amounts in lieu of contributions shall be
subject to the same interest and penalties that, pursuant to
IC 22-4-29, apply to past due contributions.
(k) Two (2) or more employers that have elected to become liable
for "payments in lieu of contributions" in accordance with
subsections (b) and (c) may file a joint application with the
department for the establishment of a group account for the purpose
of sharing the cost of benefits paid that are attributable to service in
the employ of such employers. Such group account shall be
established as provided in regulations prescribed by the
commissioner.
(Formerly: Acts 1947, c.208, s.1001; Acts 1955, c.317, s.4; Acts
1971, P.L.355, SEC.18.) As amended by Acts 1977, P.L.262, SEC.17;
Acts 1981, P.L.209, SEC.6; P.L.18-1987, SEC.33; P.L.135-1990,
SEC.1; P.L.21-1995, SEC.70; P.L.235-1999, SEC.9; P.L.108-2006,
SEC.10; P.L.175-2009, SEC.8.
IC 22-4-10-2
Fractional part of cent
Sec. 2. In the payment of any contribution, a fractional part of a
cent shall be disregarded unless it amounts to one-half cent (1/2 cent)
or more, in which case it shall be increased to one cent (1 cent).
(Formerly: Acts 1947, c.208, s.1002.)
IC 22-4-10-3
Rates
Sec. 3. (a) This subsection applies before January 1, 2011. Except
as provided in section 1(b) through 1(e) of this chapter, each
employer shall pay contributions equal to five and six-tenths percent
(5.6%) of wages, except as otherwise provided in IC 22-4-11-2,
IC 22-4-11-3, IC 22-4-11.5, and IC 22-4-37-3.
(b) This subsection applies after December 31, 2010. Except as
provided in section 1(b) through 1(e) of this chapter, each employer
shall pay contributions equal to twelve percent (12%) of wages,
except as otherwise provided in IC 22-4-11-2, IC 22-4-11-3.5,
IC 22-4-11.5, and IC 22-4-37-3.
(Formerly: Acts 1947, c.208, s.1003; Acts 1971, P.L.355, SEC.19.)
As amended by P.L.225-1985, SEC.1; P.L.108-2006, SEC.11;
P.L.175-2009, SEC.9; P.L.110-2010, SEC.25.
IC 22-4-10-4
Experience accounts; separate accounts
Sec. 4. (a) Except as provided in section 1(b) through 1(e) of this
chapter, the commissioner shall maintain within the fund a separate
experience account for each employer and shall credit to such
account all contributions paid by such employer on its behalf except
as otherwise provided in this article.
(b) The commissioner shall also maintain a separate account for
each employer electing to make payments in lieu of contributions as
provided in section 1(b) through 1(e) of this chapter and shall charge
to such account all benefits chargeable to such employer and credit
to such account all reimbursements made by such employer.
(Formerly: Acts 1947, c.208, s.1004; Acts 1951, c.307, s.1; Acts
1965, c.190, s.3; Acts 1971, P.L.355, SEC.20.) As amended by
P.L.18-1987, SEC.34; P.L.21-1995, SEC.71; P.L.108-2006, SEC.12.
IC 22-4-10-5
Voluntary payments
Sec. 5. Any employer may make voluntary payments in addition
to the contributions required under this article, and the same shall be
credited to its experience account. Such voluntary contributions shall
not be used in the computation of reduced rates unless such
contributions are paid prior to the expiration of one hundred twenty
(120) days after the beginning of the year for which such rates are
effective. Such payments shall be included in the experience account
as of the computation date only if they are made within thirty (30)
days following the date upon which the department mails notice that
such payments may be made with respect to a calendar year. Such
voluntary payments when accepted from an employer will not be
refunded in whole or in part.
(Formerly: Acts 1947, c.208, s.1006; Acts 1951, c.295, s.8.) As
amended by P.L.144-1986, SEC.100; P.L.18-1987, SEC.35.
IC 22-4-10-5.5
Repealed
(Repealed by P.L.110-2010, SEC.38.)
IC 22-4-10-6
Successor employers
Sec. 6. (a) When:
(1) an employing unit (whether or not an employing unit at the
time of the acquisition) becomes an employer under
IC 22-4-7-2(a);
(2) an employer acquires the organization, trade, or business, or
substantially all the assets of another employer; or
(3) an employer transfers all or a portion of the employer's trade
or business (including the employer's workforce) to another
employer as described in IC 22-4-11.5-7;
the successor employer shall, in accordance with the rules prescribed
by the department, assume the position of the predecessor with
respect to all the resources and liabilities of the predecessor's
experience account.
(b) Except as provided by IC 22-4-11.5, when:
(1) an employing unit (whether or not an employing unit at the
time of the acquisition) becomes an employer under
IC 22-4-7-2(b); or
(2) an employer acquires a distinct and segregable portion of
the organization, trade, or business within this state of another
employer;
the successor employer shall assume the position of the predecessor
employer with respect to the portion of the resources and liabilities
of the predecessor's experience account as pertains to the distinct and
segregable portion of the predecessor's organization, trade, or
business acquired by the successor. An application for the acquiring
employer to assume this portion of the resources and liabilities of the
disposing employer's experience account must be filed with the
department on prescribed forms not later than thirty (30) days
immediately following the disposition date or not later than ten (10)
days after the disposing and acquiring employers are mailed or
otherwise delivered final notice that the acquiring employer is a
successor employer, whichever is the earlier date. This portion of the
resources and liabilities of the disposing employer's experience
account shall be transferred in accordance with IC 22-4-11.5.
(c) Except as provided by IC 22-4-11.5, the successor employer,
if an employer prior to the acquisition, shall pay at the rate of
contribution originally assigned to it for the calendar year in which
the acquisition occurs, until the end of that year. If not an employer
prior to the acquisition, the successor employer shall pay the rate of
two and seven-tenths percent (2.7%) unless the successor employer
assumes all or part of the resources and liabilities of the predecessor
employer's experience account, in which event the successor
employer shall pay at the rate of contribution assigned to the
predecessor employer for the period starting with the first day of the
calendar quarter in which the acquisition occurs, until the end of that
year. However, if a successor employer, not an employer prior to the
acquisition, simultaneously acquires all or part of the experience
balance of two (2) or more employers, the successor employer shall
pay at the highest rate applicable to the experience accounts totally
or partially acquired for the period starting with the first day of the
calendar quarter in which the acquisition occurs, until the end of the
year. If the successor employer had any employment prior to the date
of acquisition upon which contributions were owed under
IC 22-4-9-1, the employer's rate of contribution from the first of the
year to the first day of the calendar quarter in which the acquisition
occurred would be two and seven-tenths percent (2.7%).
(Formerly: Acts 1947, c.208, s.1007; Acts 1951, c.295, s.9; Acts
1955, c.317, s.5; Acts 1967, c.310, s.12; Acts 1969, c.300, s.2; Acts
1971, P.L.355, SEC.21; Acts 1975, P.L.252, SEC.1.) As amended by
P.L.20-1986, SEC.5; P.L.18-1987, SEC.36; P.L.21-1995, SEC.72;
P.L.98-2005, SEC.6; P.L.108-2006, SEC.13.
IC 22-4-10-7
Successor employers; experience account; benefits; discrepancy in
experience accounts
Sec. 7. (a) Except as provided by IC 22-4-11.5, when an
employing unit (whether or not an employing unit prior thereto)
assumes all of the resources and liabilities of the experience account
of a predecessor employer, as provided in section 6 of this chapter,
amounts paid by such predecessor employer shall be deemed to have
been so paid by such successor employer. The experience of such
predecessor with respect to unemployment risk, including but not
limited to past payrolls and contributions, shall be credited to the
account of such successor.
(b) The payments of benefits to an individual shall not in any case
be denied or withheld because the experience account of an employer
does not reflect a balance and total of contributions paid to be in
excess of benefits charged to such experience account.
(Formerly: Acts 1947, c.208, s.1008; Acts 1951, c.295, s.10; Acts
1971, P.L.355, SEC.22.) As amended by P.L.98-2005, SEC.7.