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 fromeach employer for each calendar year in which it is subject to thisarticle with respect to wages paid during such calendar year. Wherethe status of an employer is changed by cessation or disposition ofbusiness or appointment of a receiver, trustees, trustee in bankruptcy,or other fiduciary, contributions shall immediately become due andpayable on the basis of wages paid or payable by such employer asof the date of the change of status. Such contributions shall be paidto the department in such manner as the department may prescribe,and shall not be deducted, in whole or in part, from the remunerationof individuals in an employer's employ. When contributions aredetermined in accordance with Schedule A as provided inIC 22-4-11-3, the department may prescribe rules to require anestimated advance payment of contributions in whole or in part, if inthe judgment of the department such advance payments will avoid adebit balance in the fund during the calendar quarter to which theadvance payment applies. An adjustment shall be made following thequarter in which an advance payment has been made to reflect thedifference between the estimated contribution and the contributionactually payable. Advance payment of contributions shall not berequired for more than one (1) calendar quarter in any calendar year.
(b) Any employer which is, or becomes, subject to this article byreason of IC 22-4-7-2(g) or IC 22-4-7-2(h) shall pay contributions asprovided 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 becomeliable for "payments in lieu of contributions" must be filed with thedepartment on a form prescribed by the department not later thanthirty-one (31) days following the date upon which such entityqualifies as an employer under this article, and shall be for a periodof not less than two (2) calendar years.
(d) Any employer that makes an election in accordance withsubsections (b) and (c) will continue to be liable for "payments inlieu of contributions" until it files with the department a writtennotice terminating its election. The notice filed by an employer toterminate its election must be filed not later than thirty (30) daysprior to the beginning of the taxable year for which such terminationshall first be effective.
(e) Any employer that qualifies to elect to become liable for"payments in lieu of contributions" and has been payingcontributions under this article, may change to a reimbursable basisby filing with the department not later than thirty (30) days prior tothe beginning of any taxable year a written notice of election tobecome 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" undersubsections (b) and (c) shall make reimbursement payments monthly.At the end of each calendar month the department shall bill eachsuch employer (or group of employers) for an amount equal to thefull amount of regular benefits plus the part of benefits notreimbursed by the federal government under the Federal-StateExtended Unemployment Compensation Act of 1970 paid duringsuch month that is attributable to services in the employ of suchemployers or group of employers. Governmental entities of this stateand its political subdivisions electing to make "payments in lieu ofcontributions" shall be billed by the department at the end of eachcalendar month for an amount equal to the full amount of regularbenefits plus the part of benefits not reimbursed by the federalgovernment under the Federal-State Extended UnemploymentCompensation Act of 1970 paid during the month that is attributableto service in the employ of the governmental entities.
(g) Payment of any bill rendered under subsection (f) shall bemade not later than thirty (30) days after such bill was mailed to thelast known address of the employer or was otherwise delivered to it,unless there has been an application for review and redeterminationfiled under subsection (i).
(h) Payments made by any employer under the provisions ofsubsections (f) through (j) shall not be deducted or deductible, inwhole or in part, from the remuneration of individuals in the employof the employer.
(i) The amount due specified in any bill from the department shallbe conclusive on the employer unless, not later than fifteen (15) daysafter the bill was mailed to its last known address or otherwisedelivered to it, the employer files an application for redetermination.If the employer so files, the employer shall have an opportunity to beheard, and such hearing shall be conducted by a liabilityadministrative law judge pursuant to IC 22-4-32-1 throughIC 22-4-32-15. After the hearing, the liability administrative lawjudge shall immediately notify the employer in writing of the finding,and the bill, if any, so made shall be final, in the absence of judicialreview proceedings, fifteen (15) days after such notice is issued.
(j) Past due payments of amounts in lieu of contributions shall besubject to the same interest and penalties that, pursuant toIC 22-4-29, apply to past due contributions.
(k) Two (2) or more employers that have elected to become liablefor "payments in lieu of contributions" in accordance withsubsections (b) and (c) may file a joint application with thedepartment for the establishment of a group account for the purposeof sharing the cost of benefits paid that are attributable to service inthe employ of such employers. Such group account shall beestablished as provided in regulations prescribed by thecommissioner.
(Formerly: Acts 1947, c.208, s.1001; Acts 1955, c.317, s.4; Acts1971, 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 acent 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. Exceptas provided in section 1(b) through 1(e) of this chapter, eachemployer 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 asprovided in section 1(b) through 1(e) of this chapter, each employershall 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 thischapter, the commissioner shall maintain within the fund a separateexperience account for each employer and shall credit to suchaccount all contributions paid by such employer on its behalf exceptas otherwise provided in this article.
(b) The commissioner shall also maintain a separate account foreach employer electing to make payments in lieu of contributions asprovided in section 1(b) through 1(e) of this chapter and shall chargeto such account all benefits chargeable to such employer and creditto such account all reimbursements made by such employer.
(Formerly: Acts 1947, c.208, s.1004; Acts 1951, c.307, s.1; Acts1965, c.190, s.3; Acts 1971, P.L.355, SEC.20.) As amended byP.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 additionto the contributions required under this article, and the same shall becredited to its experience account. Such voluntary contributions shallnot be used in the computation of reduced rates unless suchcontributions are paid prior to the expiration of one hundred twenty
(120) days after the beginning of the year for which such rates areeffective. Such payments shall be included in the experience accountas of the computation date only if they are made within thirty (30)days following the date upon which the department mails notice thatsuch payments may be made with respect to a calendar year. Suchvoluntary payments when accepted from an employer will not berefunded in whole or in part.
(Formerly: Acts 1947, c.208, s.1006; Acts 1951, c.295, s.8.) Asamended 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 thetime of the acquisition) becomes an employer underIC 22-4-7-2(a);
(2) an employer acquires the organization, trade, or business, orsubstantially all the assets of another employer; or
(3) an employer transfers all or a portion of the employer's tradeor business (including the employer's workforce) to anotheremployer as described in IC 22-4-11.5-7;
the successor employer shall, in accordance with the rules prescribedby the department, assume the position of the predecessor withrespect to all the resources and liabilities of the predecessor'sexperience account.
(b) Except as provided by IC 22-4-11.5, when:
(1) an employing unit (whether or not an employing unit at thetime of the acquisition) becomes an employer underIC 22-4-7-2(b); or
(2) an employer acquires a distinct and segregable portion ofthe organization, trade, or business within this state of anotheremployer;
the successor employer shall assume the position of the predecessoremployer with respect to the portion of the resources and liabilitiesof the predecessor's experience account as pertains to the distinct andsegregable portion of the predecessor's organization, trade, orbusiness acquired by the successor. An application for the acquiringemployer to assume this portion of the resources and liabilities of thedisposing employer's experience account must be filed with thedepartment on prescribed forms not later than thirty (30) daysimmediately following the disposition date or not later than ten (10)days after the disposing and acquiring employers are mailed orotherwise delivered final notice that the acquiring employer is asuccessor employer, whichever is the earlier date. This portion of theresources and liabilities of the disposing employer's experienceaccount 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 ofcontribution originally assigned to it for the calendar year in whichthe acquisition occurs, until the end of that year. If not an employerprior to the acquisition, the successor employer shall pay the rate oftwo and seven-tenths percent (2.7%) unless the successor employerassumes all or part of the resources and liabilities of the predecessoremployer's experience account, in which event the successoremployer shall pay at the rate of contribution assigned to thepredecessor employer for the period starting with the first day of thecalendar quarter in which the acquisition occurs, until the end of thatyear. However, if a successor employer, not an employer prior to theacquisition, simultaneously acquires all or part of the experiencebalance of two (2) or more employers, the successor employer shallpay at the highest rate applicable to the experience accounts totallyor partially acquired for the period starting with the first day of thecalendar quarter in which the acquisition occurs, until the end of theyear. If the successor employer had any employment prior to the dateof acquisition upon which contributions were owed underIC 22-4-9-1, the employer's rate of contribution from the first of theyear to the first day of the calendar quarter in which the acquisitionoccurred would be two and seven-tenths percent (2.7%).
(Formerly: Acts 1947, c.208, s.1007; Acts 1951, c.295, s.9; Acts1955, c.317, s.5; Acts 1967, c.310, s.12; Acts 1969, c.300, s.2; Acts1971, P.L.355, SEC.21; Acts 1975, P.L.252, SEC.1.) As amended byP.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 inexperience accounts
Sec. 7. (a) Except as provided by IC 22-4-11.5, when anemploying unit (whether or not an employing unit prior thereto)assumes all of the resources and liabilities of the experience accountof a predecessor employer, as provided in section 6 of this chapter,amounts paid by such predecessor employer shall be deemed to havebeen so paid by such successor employer. The experience of suchpredecessor with respect to unemployment risk, including but notlimited to past payrolls and contributions, shall be credited to theaccount of such successor.
(b) The payments of benefits to an individual shall not in any casebe denied or withheld because the experience account of an employerdoes not reflect a balance and total of contributions paid to be inexcess of benefits charged to such experience account.
(Formerly: Acts 1947, c.208, s.1008; Acts 1951, c.295, s.10; Acts1971, P.L.355, SEC.22.) As amended by P.L.98-2005, SEC.7.