Ind. Code ch. 22-4-10

Ind. Code ch. 22-4-10
in effect

Ind. Code § 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 in the form and manner prescribed by the department not later than thirty-one (31) days following the date upon which the 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 notice in the form and manner prescribed by the department 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 the 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. The 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 as billed by the department. (g) Payment of any bill rendered under subsection (f) shall be made not later than thirty (30) days after the bill was sent to the employer by the department. (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. (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 in the form and manner as prescribed by 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 those employers. The 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; P.L.122-2019, SEC.21.

Ind. Code § 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.

Ind. Code § 22-4-10-3 Rates

Sec. 3. Except as provided in section 1(b) through 1(e) of this chapter and IC 22-4-37-3, each employer shall pay contributions equal to the amount determined or estimated by the department under section 6 of this chapter, IC 22-4-11-2, IC 22-4-11-3.5, and IC 22-4-11.5. 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; P.L.2-2011, SEC.6; P.L.113-2026, SEC.8.

Ind. Code § 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. (c) Any employing unit that is wholly or partially owned by another employing unit will not be eligible for a separate experience account if: (1) the employing units are so closely related that it would be appropriate to disregard the corporate structure under Indiana law; or (2) one (1) of the employing units has failed to assume all of the requisite employment responsibilities necessary to provide its employees with employment. (d) Employing units not eligible for separate accounts are responsible for ensuring that their wages are reported under a single account. 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; P.L.121-2026, SEC.16.

Ind. Code § 22-4-10-4.3 Recalculation of experience rating

Sec. 4.3. (a) If employing units that are not eligible for separate accounts obtain and use separate accounts, the department shall, once the error has been discovered, retroactively recalculate the employing units' experience rate as if the employing units had reported using a single account. (b) The recalculation must be made not later than four (4) completed calendar years subsequent to the date that the contributions, penalties, or interest would have become due, except that this limitation shall not apply to any contributions, penalty, or interest that should have been paid with respect to any incorrect report filed with the department which report was known or should have been known to be incorrect by the employing unit. (c) Employing units may be subject to the following penalties for violating this section: (1) An increased merit rate under IC 22-4-11-2. (2) Penalties and interest as set forth in IC 22-4-29-1. (3) Criminal penalties set forth in IC 22-4-34-2. As added by P.L.121-2026, SEC.17.

Ind. Code § 22-4-10-4.5 Employer surcharge; interest payment on state advances from federal unemployment account

Sec. 4.5. (a) This section applies to a calendar year that begins after December 31, 2010, to an employer: (1) that is subject to this article for wages paid during the calendar year; (2) whose contribution rate for the calendar year was determined under this chapter, IC 22-4-11, IC 22-4-11.5, or IC 22-4-37-3; and (3) that: (A) has been subject to this article during the preceding thirty-six (36) consecutive calendar months; and (B) has had a payroll in each of the three (3) preceding twelve (12) month periods; if, during the calendar year, the state is required to pay interest on the advances made to the state from the federal unemployment account in the federal unemployment trust fund under 42 U.S.C. 1321. (b) In addition to the contributions determined under this chapter, IC 22-4-11, IC 22-4-11.5, or IC 22-4-37-3 for calendar year 2011, each employer shall pay an unemployment insurance surcharge that is equal to thirteen percent (13%) of the employer's contribution determined under this chapter, IC 22-4-11, IC 22-4-11.5, or IC 22-4-37-3 for the calendar year. (c) For a calendar year that begins after December 31, 2011, in which employers are required to pay the unemployment insurance surcharge described in subsection (b), the department shall determine, not later than January 31, the surcharge percentage for that year based on factors that include: (1) the interest rate charged the state for the year determined under 42 U.S.C. 1322(b); and (2) the state's outstanding loan balance to the federal unemployment account on January 1 of the year. (d) The unemployment insurance surcharge described in subsection (b) is payable to the department quarterly at the same time as employer contributions are paid under section 1 of this chapter. Failure to pay the unemployment insurance surcharge as specified in this section is considered a delinquency under IC 22-4-11-2. (e) The department: (1) may use amounts received under this section to pay interest on the advances made to the state from the federal unemployment account in the federal unemployment trust fund under 42 U.S.C. 1321; and (2) shall deposit any amounts received under this section and not used for the purposes described in subdivision (1) in the unemployment insurance benefit fund established under IC 22-4-26. (f) Amounts paid under this section and used as provided in subsection (e)(1) do not affect and may not be charged to the experience account of any employer. Amounts paid under this section and used as provided in subsection (e)(2) must be subtracted from the total amount of benefits charged to the fund under IC 22-4-11-1 in determining each employer's share of those benefits under IC 22-4-11-2(e). As added by P.L.2-2011, SEC.7. Amended by P.L.183-2015, SEC.1.

Ind. Code § 22-4-10-4.6 Unemployment insurance solvency fund; establishment; investment; interest; nonreverting

Sec. 4.6. (a) The unemployment insurance solvency fund is established for the purpose of paying interest on the advances made to the state from the federal unemployment account in the federal unemployment trust fund under 42 U.S.C. 1321. The fund shall be administered by the department. (b) Money received by the department from the unemployment insurance surcharge that the department elects to use for the purposes described in section 4.5(e)(1) of this chapter shall be deposited in the fund for the purposes of the fund. (c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited at least quarterly in the fund. (d) Money in the fund at the end of a state fiscal year does not revert to the state general fund. As added by P.L.2-2011, SEC.8.

Ind. Code § 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. The voluntary contributions shall not be used in the computation of reduced rates unless the contributions are paid prior to the expiration of one hundred twenty (120) days after the beginning of the year for which the rates are effective. The 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 sends notice that the payments may be made with respect to a calendar year. The 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; P.L.122-2019, SEC.22.

Ind. Code § 22-4-10-6 Successor employers

Sec. 6. (a) Except as provided by IC 22-4-6.5, 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(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 22-4-6.5 or 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. Both the disposer and the acquirer must disclose the transfer to the department in the form and manner prescribed by the department 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 sent a request for information, 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 the rules prescribed by the department. (c) Except as provided by IC 22-4-6.5 or 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 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. 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; P.L.33-2013, SEC.3; P.L.122-2019, SEC.23.

Ind. Code § 22-4-10-7 Successor employers; experience account; benefits; discrepancy in experience accounts

Sec. 7. (a) Except as provided by IC 22-4-6.5 or 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; P.L.33-2013, SEC.4.

Ind. Code § 22-4-10-7.3 Successor and predecessor employers; reports; transfer

Sec. 7.3. (a) An employing unit, whether or not an employer at the time of transfer, that: (1) acquires all or a portion of an employer's trade or business (including the employer's workforce), which results in the continuance of an organization, trade, or business; or (2) merges, incorporates, or reorganizes the employing unit's business; immediately qualifies as a covered employer under this article and assumes the position of the predecessor with respect to all the resources and liabilities of the predecessor's experience account. (b) The successor and predecessor described in subsection (a) must complete all reports via employer self service or the current state form approved for such reporting. Reports must be filed by the earlier of thirty (30) days from the dispositions date or ten (10) days from a request for information by the department. (c) An employing unit, whether or not an employer at the time of transfer, that: (1) acquires a distinct and segregable portion of an organization, trade, or business; and (2) retains assets, which may include the workforce or employees, or both, of that business; shall be entitled to consider the wages reported by the predecessor when computing the tax base per employee, per calendar year. (d) The predecessor described in subsection (c) must transfer a proportionate portion of its experience balance, and the merit rate, to the successor described in subsection (c) by: (1) the earlier of thirty (30) days from the date of disposition; or (2) not later than ten (10) days after notification from the department. The employers must complete all reports in the manner and form prescribed by the department. Failure to complete the required forms shall result in the department making an independent determination with regard to the percentage of the transfer of the predecessor's experience balance to the successor's experience balance. As added by P.L.121-2026, SEC.18.

Ind. Code § 22-4-10-8 Indiana directory of hires and rehires

Sec. 8. (a) This section applies only to an employer who employs individuals within the state. (b) As used in this section, "newly hired employee" means an employee who: (1) has not previously been employed by the employer; or (2) was previously employed by the employer but has been separated from such prior employment for at least sixty (60) consecutive days. (c) As used in this section, "employee": (1) has the meaning set forth in Section 3401(c) of the Internal Revenue Code; and (2) does not include an employee of a federal or state agency who performs intelligence or counter intelligence functions if the head of the agency determines that the reporting information required under this section could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission. (d) As used in this section, "employer" has the meaning set forth in Section 3401(d) of the Internal Revenue Code. The term includes: (1) governmental agencies; (2) labor organizations; or (3) a person doing business in the state as identified by: (A) the person's federal employer identification number; or (B) if applicable, the common paymaster, as defined in Section 3121 of the Internal Revenue Code or the payroll reporting agent of the employer, as described in IRS Rev. Proc. 70-6, 1970-1 C.B. 420. (e) As used in this section, "labor organization" has the meaning set forth in 42 U.S.C. 653a(a)(2)(B)(ii). (f) The department shall maintain a directory of new hires as required under 42 U.S.C. 653a. (g) The directory under subsection (f) must contain the information for each newly hired employee that an employer must provide to the department under subsection (i). (h) An employer must transmit the information required under subsection (i) within twenty (20) business days of the employee's date of hire. (i) The employer shall provide the following information for a newly hired employee to the department electronically, in a manner prescribed by the department: (1) The name, address, and Social Security number of the employee. (2) The name, address, and federal tax identification number of the employer. (3) The date services for remuneration were first performed by the employee. (4) The current primary standardized occupational classification code of the employee. (5) The starting compensation of the employee. (j) An employer that has employees in two (2) or more states and that transmits reports under this section electronically or magnetically may comply with this section by doing the following: (1) Designating one (1) state to receive each report. (2) Notifying the Secretary of the United States Department of Health and Human Services which state will receive the reports. (3) Transmitting the reports to the agency in the designated state that is charged with receiving the reports. (k) The department may impose the following as a civil penalty: (1) Twenty-five dollars ($25) on an employer that fails to comply with this section. (2) Five hundred dollars ($500) on an employer that fails to comply with this section if the failure is a result of a conspiracy between the employer and the employee to: (A) not provide the required report; or (B) provide a false or an incomplete report. (l) The information contained in the directory maintained under subsection (f) is available for use by the department in a manner consistent with state and federal law. (m) The department of child services (established under IC 31-25-1-1) shall: (1) reimburse the department for a pro rata share of the costs incurred in carrying out this section using a cost allocation method described in 45 CFR 75.405; and (2) enter into a purchase of service agreement with the department that establishes procedures necessary to administer this section. As added by P.L.69-2015, SEC.14. Amended by P.L.183-2017, SEC.4; P.L.106-2024, SEC.6.

Ind. Code § 22-4-10-9 Employing units; eligibility for separate accounts

Sec. 9. (a) Where employing units are related because one employing unit has created or acquired a separate employing unit with no existing experience account, the employing units are responsible for determining whether they are eligible for separate accounts before requesting a new account. (b) Where employing units with properly acquired experience accounts become related and ineligible for separate accounts through acquisition or merger, the entities are responsible for reporting the acquisition or merger to the department. The department shall combine the experience balance of the two (2) accounts once it receives the report. As added by P.L.121-2026, SEC.19.

Ind. Code § 22-4-10-10 Manner of making payments

Sec. 10. All payments made or due to the department under this chapter must be made in the manner prescribed by the department. The department may require all payments to be made electronically. As added by P.L.121-2026, SEC.20.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/22Fetched: 10/17/2026