Experience account; debit balance; rate of contribution; deposits
Sec. 2. (a) Except as provided in IC 22-4-11.5, the commissioner
shall for each year determine the contribution rate applicable to each
employer.
(b) The balance shall include contributions with respect to the
period ending on the computation date and actually paid on or before
July 31 immediately following the computation date and benefits
actually paid on or before the computation date and shall also include
any voluntary payments made in accordance with IC 22-4-10-5:
(1) for each calendar year, an employer's rate shall be
determined in accordance with the rate schedules in section 3 or
3.3 of this chapter; and
(2) for each calendar year, an employer's rate shall be two and
seven-tenths percent (2.7%), except as otherwise provided in
IC 22-4-37-3, unless and until:
(A) the employer has been subject to this article throughout
the thirty-six (36) consecutive calendar months immediately
preceding the computation date; and
(B) there has been some annual payroll in each of the three
(3) twelve (12) month periods immediately preceding the
computation date.
(c) In addition to the conditions and requirements set forth and
provided in subsection (b)(2)(A) and (b)(2)(B), an employer's rate
shall not be less than five and four-tenths percent (5.4%) unless all
required contribution and wage reports have been filed within
thirty-one (31) days following the computation date and all
contributions, penalties, and interest due and owing by the employer
or the employer's predecessors for periods prior to and including the
computation date have been paid:
(1) within thirty-one (31) days following the computation date;
or
(2) within ten (10) days after the commissioner has given the
employer a written notice by registered mail to the employer's
last known address of:
(A) the delinquency; or
(B) failure to file the reports;
whichever is the later date.
The board or the board's designee may waive the imposition of rates
under this subsection if the board finds the employer's failure to meet
the deadlines was for excusable cause. The commissioner shall give
written notice to the employer before this additional condition or
requirement shall apply.
(d) However, if the employer is the state or a political subdivision
of the state or any instrumentality of a state or a political subdivision,
or any instrumentality which is wholly owned by the state and one
(1) or more other states or political subdivisions, the employer may
contribute at a rate of one percent (1%) until it has been subject to
this article throughout the thirty-six (36) consecutive calendar
months immediately preceding the computation date.
(e) On the computation date every employer who had taxable
wages in the previous calendar year shall have the employer's
experience account charged with the amount determined under the
following formula:
STEP ONE: Divide:
(A) the employer's taxable wages for the preceding calendar
year; by
(B) the total taxable wages for the preceding calendar year.
STEP TWO: Multiply the quotient determined under STEP
ONE by the total amount of benefits charged to the fund under
section 1 of this chapter.
(f) One (1) percentage point of the rate imposed under subsection
(c) or the amount of the employer's payment that is attributable to the
increase in the contribution rate, whichever is less, shall be imposed
as a penalty that is due and shall be deposited upon collection into
the special employment and training services fund established under
IC 22-4-25-1. The remainder of the contributions paid by an
employer pursuant to the maximum rate shall be:
(1) considered a contribution for the purposes of this article;
and
(2) deposited in the unemployment insurance benefit fund
established under IC 22-4-26.
(Formerly: Acts 1947, c.208, s.1102; Acts 1953, c.177, s.12; Acts
1955, c.317, s.6; Acts 1965, c.190, s.5; Acts 1967, c.310, s.14; Acts
1971, P.L.355, SEC.24.) As amended by Acts 1977, P.L.262, SEC.19;
P.L.227-1983, SEC.5; P.L.225-1985, SEC.2; P.L.34-1985, SEC.4;
P.L.20-1986, SEC.6; P.L.18-1987, SEC.37; P.L.80-1990, SEC.11;
P.L.1-1992, SEC.107; P.L.105-1994, SEC.2; P.L.21-1995, SEC.73;
P.L.179-1999, SEC.1; P.L.98-2005, SEC.8.
Last modified: May 27, 2006