CHAPTER 29. COLLECTION OF CONTRIBUTIONS, INTEREST, AND PENALTIES
IC 22-4-29
Chapter 29. Collection of Contributions, Interest, and Penalties
IC 22-4-29-1
Delinquent contributions; interest and penalties
Sec. 1. (a) Contributions unpaid on the date on which they are dueand payable, as prescribed by the commissioner, shall bear interestat the rate of one percent (1%) per month or fraction thereof fromand after such date until payment, plus accrued interest, is receivedby the department. The board may prescribe fair and reasonableregulations pursuant to which such interest shall not accrue.
(b) If the failure to pay any part or all of the delinquentcontributions is due to negligence or intentional disregard ofauthorized rules, regulations, or notices, but without intent todefraud, there shall be added, as a penalty, ten percent (10%) of thetotal amount of contributions unpaid, which penalty shall becomedue and payable upon notice and demand by the commissioner.
(c) If the commissioner finds that the failure to pay any part or allof delinquent contributions is due to fraud with intent to evade thepayment of contributions, there shall be added, as a penalty, fiftypercent (50%) of the total amount of delinquent contributions, whichpenalty shall become due and payable upon notice and demand bythe commissioner.
(d) Interest and penalties collected pursuant to this section shallbe paid into the special employment and training services fund.
(Formerly: Acts 1947, c.208, s.3001.) As amended by P.L.228-1983,SEC.5; P.L.18-1987, SEC.75; P.L.21-1995, SEC.110.
IC 22-4-29-2
Assessments; limitation
Sec. 2. In addition to all other powers granted to the commissionerby this article, the commissioner or the commissioner's authorizedrepresentatives shall have the power to make assessments against anyemploying unit which fails to pay contributions, interest, or penaltiesas required by this article, or for additional contributions due andunpaid, which assessment is considered prima facie correct. Suchassessments shall consist of contributions and any interest orpenalties which may be due by reason of section 1 of this chapter.Such assessment must be made not later than four (4) calendar yearssubsequent to the date that said contributions, interest, or penaltieswould have become due, except that this limitation shall not apply toany contributions, interest, or penalties which should have been paidwith respect to any incorrect report filed with the department whichreport was known or should have been known to be incorrect by theemploying unit.
(Formerly: Acts 1947, c.208, s.3002.) As amended by P.L.144-1986,SEC.129; P.L.18-1987, SEC.76; P.L.21-1995, SEC.111;P.L.290-2001, SEC.21; P.L.175-2009, SEC.37.
IC 22-4-29-3 Assessments; notice
Sec. 3. The commissioner, or the commissioner's duly authorizedrepresentative, shall immediately notify the employing unit of theassessment in writing by mail, and such assessment shall be finalunless the employing unit protests such assessment within fifteen(15) days after the mailing of the notice.
(Formerly: Acts 1947, c.208, s.3003.) As amended by P.L.20-1986,SEC.14; P.L.18-1987, SEC.77; P.L.21-1995, SEC.112.
IC 22-4-29-4
Assessments; protest; hearings
Sec. 4. If the employing unit protests such assessment, uponwritten request it shall have an opportunity to be heard, and suchhearing shall be conducted by a liability administrative law judgepursuant to the provisions of IC 22-4-32-1 through IC 22-4-32-15.After the hearing the liability administrative law judge shallimmediately notify the employing unit in writing of the finding, andthe assessment, if any, so made shall be final, in the absence ofjudicial review proceedings as provided in this article, thirty (30)days after such notice of appeal is issued.
(Formerly: Acts 1947, c.208, s.3004; Acts 1951, c.295, s.17.) Asamended by P.L.144-1986, SEC.130; P.L.18-1987, SEC.78;P.L.135-1990, SEC.20; P.L.108-2006, SEC.48.
IC 22-4-29-5
Assessments; judicial review; stay of proceedings
Sec. 5. The finality of such decision of the liability administrativelaw judge may be stayed for a period of thirty (30) days from the dateof service of notice on the department of the appeal of said decisionas provided in this article. Such notice must be served within thirty(30) days after notice of the decision of the liability administrativelaw judge is issued. If judicial review proceedings are not institutedwithin the time provided for in this article, the finality of saiddecision shall not be further stayed.
(Formerly: Acts 1947, c.208, s.3005.) As amended by P.L.144-1986,SEC.131; P.L.135-1990, SEC.21; P.L.108-2006, SEC.49.
IC 22-4-29-6
Assessments; nonpayment; warrants; levy; garnishment; lien
Sec. 6. (a) Unless an assessment is paid in full within seven (7)days after it becomes final, the commissioner or the commissioner'srepresentative may file with the clerk of the circuit court of anycounty in the state a warrant in duplicate, directed to the sheriff ofsuch county, commanding the sheriff to levy upon and sell theproperty, real and personal, tangible and intangible, of the employingunit against whom the assessment has been made, in sufficientquantity to satisfy the amount thereof, plus damages to the amountof ten percent (10%) of such assessment, which shall be in additionto the penalties prescribed in this article for delinquent payment, andin addition to the interest at the rate of one percent (1%) per month
upon the unpaid contribution from the date it was due, to the date ofpayment of the warrant, and in addition to all costs incident to therecording and execution thereof. The remedies by garnishment andproceedings supplementary to execution as provided by law shall beavailable to the board to effectuate the purposes of this chapter.Within five (5) days after receipt of a warrant under this section, theclerk shall:
(1) retain the duplicate copy of the warrant;
(2) enter in the judgment record in the column for judgmentdebtors the name of the employing unit stated in the warrant, orif the employing unit is a partnership, the names of the partners;
(3) enter the amount sought by the warrant;
(4) enter the date the warrant was received; and
(5) certify the original warrant and return it to the department.
(b) Five (5) days after the clerk receives a warrant undersubsection (a), the amount sought in the warrant, the damages to anamount of ten percent (10%) of the assessment as provided insubsection (a), penalties, and interest described in subsection (a),become a lien upon the title to and interest in the real and personalproperty of the employing unit.
(Formerly: Acts 1947, c.208, s.3006.) As amended by P.L.20-1986,SEC.15; P.L.18-1987, SEC.79; P.L.21-1995, SEC.113; P.L.52-1998,SEC.2.
IC 22-4-29-7
Assessments; issuance of warrant to sheriff
Sec. 7. The clerk shall return the original, certified copy of thewarrant to the department together with all recording informationconcerning the warrant. Upon receipt of the warrant from the clerk,the department shall issue the warrant to the sheriff of the county.
(Formerly: Acts 1947, c.208, s.3007.) As amended by P.L.21-1995,SEC.114; P.L.52-1998, SEC.3.
IC 22-4-29-8
Assessments; warrants; return; fees and costs
Sec. 8. (a) If the clerk fails to record the warrant and issue thesame to the department within five (5) days after it has been receivedby the clerk as herein provided, the clerk shall forfeit to the state foreach such failure the sum of twenty dollars ($20), which shall bedeposited in the unemployment insurance benefit fund.
(b) Within one hundred twenty (120) days from the date of receiptof the warrant (or immediately after service if the warrant is fullysatisfied or found to be wholly uncollectible) the sheriff shall returnit to the department, together with the money collected, less fees andcosts.
(c) "Costs" as referred to in this subsection includes the fees ofthe clerk and sheriff as are specifically provided for and costs ofstorage, appraisal, publication, and other necessary and properlychargeable expenses incurred in the sale of property on execution.The costs herein specifically prescribed for the clerk and sheriff shall
be as follows:
(1) Clerk's fee of three dollars ($3) to be charged on the warrantand paid to the clerk for recording the warrant.
(2) Sheriff's fee of:
(A) six dollars ($6) to be charged on the warrant and paid tothe sheriff in every instance in which the warrant has beenduly and properly served and the schedules and affidavitshereinafter provided for have been executed and signed; or
(B) ten dollars ($10) for sale of property on execution ordecree, including making a deed or certificate of sale, to becharged on the warrant.
(Formerly: Acts 1947, c.208, s.3008; Acts 1951, c.295, s.18; Acts1969, c.300, s.7.) As amended by P.L.18-1987, SEC.80; P.L.21-1995,SEC.115; P.L.52-1998, SEC.4.
IC 22-4-29-9
Assessments; fees and costs; collection; disposition
Sec. 9. (a) The fees and charges provided in section 8 of thischapter for the clerk and sheriff shall be the property of the clerk andsheriff, and, excepting additional payments to the sheriff providedfor in this section, shall be the only fees and charges payable for theirservices relating to the warrants herein and shall be in lieu of all feesand charges provided for in other statutes for services relating torecording and serving of warrants and levying of executions, whethersuch other statutes relate to clerks, sheriffs, governmental units, orsubdivisions thereof. Such costs shall be charged against theemploying unit and collected from it by the sheriff.
(b) In case the amount collected is sufficient to satisfy the entireamount of the warrant and all costs thereon, the sheriff shall retainan amount equal to ten percent (10%) of the assessment in additionto the fees provided in section 8 of this chapter. If such amount is notcollected in full, the sheriff shall retain an amount equal to fivepercent (5%) of the amount collected.
(c) However, in instances wherein the sheriff makes no collectionupon a warrant and it has been returned to the department asuncollectible and the warrant is thereafter paid voluntarily in wholeor in part by the employing unit to the clerk or to the department, thesheriff shall not be entitled to either of the payments mentioned insubsection (b), and the damages assessed in the warrant shall bedeposited in the unemployment insurance benefit fund.
(Formerly: Acts 1947, c.208, s.3009.) As amended by P.L.18-1987,SEC.81; P.L.21-1995, SEC.116.
IC 22-4-29-10
Assessments; return; subsequent warrants; fees; attempts to collect
Sec. 10. (a) The return by the sheriff to the department of thewarrants shall be made monthly on or before the fifth day of themonth. All money so returned to the department shall be receiptedfor by the department and its endorsement upon the checktransmitted by the sheriff shall be conclusive evidence of such
payment by the sheriff and no other receipt shall be necessary.
(b) If a warrant is not satisfied within the one hundred twenty(120) days specified in section 8 of this chapter, nothing herein shalloperate to prevent the department from issuing subsequent warrantsupon the identical amount of the unpaid assessment. Subsequentwarrants shall not be recorded by the clerk, and no fees shall bechargeable by the clerk. Upon any subsequent warrant, the sheriffshall be entitled to a sum for mileage equal to that sum per mile paidto state officers and employees, with the rate changing each time thestate government changes its rate per mile, but shall not be entitledto any other fee if the same has been paid the sheriff for servicesupon the original warrant, except that in case collection is made inpart or in full with respect to any such subsequent warrant, the sheriffis entitled to the five percent (5%) or ten percent (10%) as providedin section 9(b) of this chapter.
(c) In every instance in which the sheriff shall return any warrantunsatisfied, the sheriff shall attach to the warrant a summary of allrelative information regarding the attempts to collect the warrant andthe reason the warrant is being returned unsatisfied.
(Formerly: Acts 1947, c.208, s.3010; Acts 1975, P.L.15, SEC.30.) Asamended by P.L.18-1987, SEC.82; P.L.21-1995, SEC.117;P.L.52-1998, SEC.5.
IC 22-4-29-11
Assessments; failure to locate employing unit
Sec. 11. In the event the sheriff is unable to locate the employingunit after diligent search, the sheriff shall file with the department astatement sworn to by the sheriff that a diligent search has been madeand the employing unit cannot be located within the sheriff'sbailiwick.
(Formerly: Acts 1947, c.208, s.3011.) As amended by Acts 1978,P.L.2, SEC.2218; P.L.18-1987, SEC.83; P.L.52-1998, SEC.6.
IC 22-4-29-12
Applicability of exemption laws for relief of debtors
Sec. 12. The liability for any contributions, skills 2016 trainingassessments, interest, penalties, and damages imposed by thischapter, or costs incidental to execution of warrants, shall not besubject to any of the provisions of the exemption laws of the state ofIndiana for the relief of debtors.
(Formerly: Acts 1947, c.208, s.3012.) As amended by P.L.131-1983,SEC.5; P.L.52-1998, SEC.7; P.L.290-2001, SEC.22.
IC 22-4-29-13
Notices
Sec. 13. (a) This section applies to notices given under sections 3,4, and 5 of this chapter.
(b) As used in this section, "notices" includes mailings ofassessments, notice of intention to seek judicial review, and warrants.
(c) If a notice is served through the United States Postal Service,
three (3) days must be added to a period that commences uponservice of that notice.
(d) The filing of a document with the appellate division or reviewboard is complete on the earliest of the following dates that apply tothe filing:
(1) The date on which the document is delivered to the appellatedivision or review board.
(2) The date of the postmark on the envelope containing thedocument if the document is mailed to the appellate division orreview board by the United States Postal Service.
(3) The date on which the document is deposited with a privatecarrier, as shown by a receipt issued by the carrier, if thedocument is sent to the appellate division or review board by aprivate carrier.
As added by P.L.135-1990, SEC.22.
IC 22-4-29-14
Data match system for collection of final assessments; financialinstitutions
Sec. 14. (a) The department may operate a data match system witheach financial institution doing business in Indiana.
(b) If the department operates a data match system, each financialinstitution doing business in Indiana shall provide information to thedepartment on all employers:
(1) that hold one (1) or more accounts with the financialinstitution; and
(2) that are subject to a warrant issued by the commissioner forfailure to pay a final assessment for contributions, interest,penalties, and any associated collection costs.
(c) To provide the information required under subsection (b), afinancial institution shall do one (1) of the following:
(1) Identify employers by comparing records maintained by thefinancial institution with records provided by the departmentby:
(A) name; and
(B) either:
(i) Social Security number; or
(ii) federal tax identification number.
(2) Comply with IC 31-25-4-31(c)(2). The child support bureauestablished by IC 31-25-3-1 shall regularly make reportssubmitted under IC 31-25-4-31(c)(2) accessible to thedepartment or its agents for use only in the collection of unpaidfinal assessments described in subsection (b)(2).
(d) The information required under subsection (b) must:
(1) be provided on a quarterly basis; and
(2) include:
(A) the name;
(B) the address of record; and
(C) either:
(i) the Social Security number; or (ii) the federal tax identification number;
of the employers identified under subsection (b).
(e) When the department determines that the information requiredunder subsection (d)(2) is identical for an employer that holds anaccount with a financial institution and an employer that is subjectto a warrant issued by the commissioner for failure to pay a finalassessment for contributions, interest, penalties, and any associatedcollection costs, the department or its agents shall provide a noticeof the match to the financial institution if action is to be initiated toissue a warrant to levy upon or encumber the account.
(f) This section does not preclude a financial institution fromexercising its right to:
(1) charge back or recoup a deposit to an account; or
(2) set off from an account held by the financial institution inwhich the employer has an interest any debts owed to thefinancial institution that existed before:
(A) the department's warrant; and
(B) notification to the financial institution of thedepartment's warrant.
(g) A financial institution ordered to block or encumber anaccount under this section is entitled to collect its normallyscheduled account activity fees to maintain the account during theperiod the account is blocked or encumbered.
(h) All information provided by a financial institution under thissection is confidential and is available only to the department or itsagents for use only in the collection of unpaid final assessmentsdescribed in subsection (b)(2).
(i) A financial institution providing information required underthis section is not liable for:
(1) disclosing the required information to the department or thechild support bureau established by IC 31-25-3-1;
(2) blocking or surrendering an individual's assets in responseto a levy imposed under this section by:
(A) the department; or
(B) a person or an entity acting on behalf of the department;or
(3) any other action taken in good faith to comply with thissection.
(j) A person or an entity that is acting on behalf of the departmentis not liable for any action taken under this section in good faith tocollect unpaid final assessments described in subsection (b)(2)unless:
(1) the action is contrary to the department's direction to theperson or entity; or
(2) for information provided under this section, the person orentity acts with:
(A) deliberate ignorance of the truth or falsity of theinformation; or
(B) reckless disregard for the truth or falsity of theinformation. (k) The department or its agents shall pay a financial institutionperforming the data match under this section a reasonable fee, asdetermined by the department, of at least five dollars ($5) for eachwarrant issued to the financial institution.
(l) This section does not prevent the department or its agents fromencumbering an employer's account with a financial institution byany other remedy available under the law.
(m) An:
(1) officer or employee of the department; or
(2) officer or employee of a person or entity that is acting onbehalf of the department;
who knowingly or intentionally discloses for a purpose other than thecollection of unpaid final assessments described in subsection (b)(2)information provided by a financial institution that is confidentialunder this section commits a Class A misdemeanor.
As added by P.L.138-2008, SEC.5.